Major Payment Processing Challenges Faced By Independent Hotels

Independent accommodation properties are over and over again confronted with challenges that larger chain properties can stay away from or manage effectively, because of their size, resources, and technology. Payment processing is one of those difficulties, despite being a key piece in the success of operating an accommodation property.

As hotel software technology continues to develop and offer better solutions for all hotel operators, there are still some significant pain points to know about, and a couple of potential ways to deal with them.

Guest Expectations

Access to online technology and a digital world has modified guest expectations in insignificant ways. They are looking for brisk and seamless interactions and it's significant for hotel operators to deliver those expectations— particularly with regards to payment processing— however, that isn't yet the situation. According to a report by Statista, 51% of guests want digital payment options at hotels, yet just 28% of hotel businesses offer mobile payment options.

Regardless of whether it's offering various payment methods or the option to digital payment guests are getting progressively loyal to the properties that offer them the most comfortable and seamless Omni-channel experiences.

Chargebacks and Fraud

Despite the fact that across the board utilization of chip and pin innovation has assisted with decrease the number of physical payment terminal comprises, numerous properties are still to a great extent paper-based, accepting MasterCard authorization forms through fax or over email. Physically recording and housing credit card numbers enormously increases the opportunity of fraud and related chargebacks, and in a perfect future, properties will never need to do this again.

Implementing hotel software technology that permits properties to accept various payment methods, for example, eWallet accounts can help reduce the risk of hotel operators, while also profiting guests with alternative payment options. It's additionally a smart thought to make a chargeback the management plan, which would clearly outline a cancellation and refund policies, just as documentation required for each transaction to keep up an adequate paper trail.

The PCI compliance Requirements

The Payment Card Industry Data Security Standard (PCI DSS) is the worldwide security standard adopted by digital card brands for all vendors who process, store, or transmit cardholder information or validation information, to diminish the risk of cardholders having their information compromised or breached.

The PCI Security Council has delineated 12 stages required to guarantee compliance, ensure your client’s information, and stay away from penalties in case of a security breach, and as of January 1, 2019, all vendors must process card approvals following PCI DSS form 3.2.1.

Consenting to these prerequisites can be overpowering for independent hotel operators, who may not have the resources or infrastructure set up to guarantee every one of the 12 PCI steps is being met. However, working with a cloud-based hotel software with a PCI compliant payment gateway can help actualize these necessities or oversee them directly on their end, mitigating the pressure off of hotel management.

Payment Integrations

Numerous small hotels will, in general, run their property with multiple technologies, not understanding the productivity and financial benefits they may accomplish with the investment in all in one integrated hotel property management system (PMS). A comprehensive PMS with payment gateway integration can help remove the complexity of accepting payments by managing security compliance, fundamentally reducing payment processing fees and automating manual processes.

Payment Reconciliations

For small and midsized independent properties who might not have an accounting team or complex hotel accounting software’s in place, reconciling everyday payment transactions can be a manual nightmare. Any manual work leaves space for human mistakes, and resolving payment disparities can take a great deal of time that could be vastly utilized in interacting and creating remarkable guest experiences.

By investing in hotel software and integrating payments will remove the headache and efforts required for reconciliations, saving hotel operators time and revenue.

These are only a few basic challenges that independent properties may face in regards to processing payments, yet with a couple of process changes to payment-related investment, there are many ways these small lodging properties can compete with the bigger chains, drive direct bookings, and improve guest satisfaction.

Book a 30 minutes free consultation with our mycloud team to understand how you can remove the complexity nature from payment processing, save time on your reconciliations, or improve your property security.

Mycloud offers a comprehensive hotel software for any size of property. The advanced features allow clients to manage their hotel operations efficiently and increases revenue.