Your Independent Hotel Payment Processing Guide to Reducing Fees & Increasing Security

Jul 19th, 2023

ACH Chargebacks Payment Processing Interchange Cryptocurrency PCI

In the digital age, people are more apt to pay with plastic than cold hard cash–which means it’s crucial to have payment processing capabilities in place to facilitate that. But not all payment processing solutions are the same, especially when it comes to fees, security, and industry expertise.

Some payment processors are made for general, one-size-fits-all uses, while other payment processors cater to the specific needs of a niche audience. When exploring hotel payment processing options for your independent hotel or bed & breakfast, what should you look for?

Choosing an Independent Hotel Payment Processing Solution

If you want to reduce fees and increase security around hotel payment processing, you can implement some processes and best practices yourself. However, a lot of it comes down to what your payment processor can provide.

Not all payment processors are created equal, so keep these key attributes in mind when searching for a processing solution.

How a Hotel Payment Processor Can Impact Your Fees

Every industry will face some share of unavoidable fees, but some independent hotel payment processors will come equipped with tools and capabilities to mitigate or avoid certain fees where possible.

Some of the ways your payment process can affect the fees you pay include:

Flexible Payment Options - Guests want flexible payment options so they can cover the cost of their stay in the way that best suits their finances. A good payment processor accepts credit card payments in addition to ACH, e-check, debit, cryptocurrency, cash payments and even book-now-pay-later options, all of which may have lower processing fees than credit cards.

Compliant Surcharging - The ability to add surcharging is another crucial factor for hotel payment processing, since credit card processing fees can quickly add up and eat into your margins. By adding a compliant surcharge at checkout, you can lower credit card processing fees by passing them along to your guests instead.

Reimbursed Processing Fees - Some payment processors, like Ascent, will reimburse processing fees on refunds and credits when they are available from the card brands. This is sometimes called net billing or negative interchange, and it will help reduce your costs.

Interchange Plus Pricing - With this pricing model in place, all fees are passed directly through to the merchant with a small fee added on for the services rendered. Since it’s more transparent than fixed price models, interchange plus pricing essentially eliminates hidden costs.

Payment Provider Fees - Finally, ask the payment provider if they charge any additional fees beyond their standard pricing. This could include application fees, setup fees, and even a termination fee if you cancel a long-term contract.

Crucial Security Features for Payment Processors

Of course, your bottom line is not the only thing to consider. Security for both your brand and your guests is equally important when deciding on hotel payment processing. Keeping funds and sensitive data secure should be a priority at every step of the process.

Some of the best security features to look for in a payment processing solution include:

Merchant of Record (MoR) - Properties established as the Merchant of Record with a partnered U.S. or Canadian bank benefit from increased flexibility with online travel agents and direct bookings. While it does require paperwork, your business can receive faster deposits, get money directly from the processing bank, qualify for customizable rates, and more. You can also resolve issues with a guest’s transaction faster by contacting them directly instead of waiting on a third party MoR.

Tokenization - Tokenization replaces card data with non-sensitive data only readable by specific software for added security.

EMV Chip and Point-to-Point Encryption - Like tokenization, this is another opportunity to secure the payments that are placed with your business. Ascent Payment Solutions also offers hosted payment pages externally from your website where payment information is securely entered.

PCI Compliance - Also known as the Payment Card Industry Data Security Standard, complying with PCI standards ensures your company is handling branded credit cards in a safe, secure way that reduces the risk of fraud. If you experience a data breach, your partner bank may provide some financial assistance as long as you have certified your PCI compliance, which is a great way to put your mind at ease.

Identity Verification - Technology such as IDVerify powered by EMV 3DS quickly and accurately identifies a cardholder’s identity, making it more difficult for fraudsters to take advantage of your hotel. This significantly reduces chargebacks and transfers the liability for fraud from the merchant to the issuing bank.

Ongoing Support

For all the benefits a payment processor might offer, it may do you little good if you can’t easily get ahold of your processing partner for help with onboarding, statements, technical questions, and anything else you might need.

Support can and should include ongoing training for your team, too. If your team is properly trained, they can work more efficiently and make fewer mistakes. This results in improved security, reduced human error, and ultimately even reduced labor costs. Some payment providers will offer training or ongoing monitoring to help you achieve these goals.

Industry experience is another factor to consider, too. Ascent has extensive experience in hospitality and various lodging-related industries, allowing us to offer education and advice tailored to you and your independent hotel. With us, you always get access to individualized and personalized care with a team of dedicated professionals.

Contact Ascent Payment Solutions Today

With more than two decades of payment processing expertise in the independent hotel and vacation rental industry, Ascent Payment Solutions is proud to offer customized payment processing solutions that cater to your business.

Processing for credit cards, debit cards, e-checks, ACH, and cryptocurrency
Interchange plus pricing and net billing
Chargeback support and consultation
Free U.S. based support
No setup fees, no contract length requirement, and no cancellation fees
And so much more

We provide the highest level of service, security, savings, and solutions so that you can focus on your top priority: growing your business.

Contact us today to see how we provide the best hotel payment processing services for your needs.