Why the Hospitality Industry Needs Specialised Payment Solutions
Hotels and hospitality businesses have unique payment processing challenges. Guests want convenience and your business needs to process high volumes of transactions smoothly and securely. Managing multiple payment methods for reservations, on site charges and recurring memberships requires a payment processor that understands the hospitality industry.
Why Hotels Are High Risk for Payment Processing
The hospitality industry is high risk for payment processors for the following reasons:
- High Transaction Volumes: Hotels process high volumes of transactions, especially during peak season. This increases the risk of fraud.
- Chargebacks: With digital payments becoming more common, chargebacks can become an issue if guests dispute transactions.
- Seasonal Fluctuations: Business can be seasonal so there can be periods of high processing demand which can impact a processor’s risk profile.
Why Choose the Right Payment Processor
Working with a trusted payment processor brings several benefits to your hotel. First and foremost, security is key—protect guest data through PCI compliant systems, encryption and tokenisation. Efficient transactions is another benefit—smooth, fast payments at check-in, check-out and for any in-house services or amenities.
Flexibility of integration is important too; a processor that integrates with your existing property management and booking systems makes life easier. Offering multiple payment options—credit cards, digital wallets and mobile payments—increases guest satisfaction and caters to their needs.
And 24/7 support so your payment system runs smoothly even during peak periods and you can sleep easy knowing transactions will be processed without interruption.
Merchant Account for Hotels and Resorts
Choosing the right merchant account is key to your hospitality business and the options will depend on your business model and payment needs. Traditional merchant accounts are the most common choice, you have full control over transaction processing and can manage payments as you see fit.
For businesses in high risk industries like hospitality, high risk merchant accounts are a special option that can reduce the likelihood of account holds and restrictions. If you use property management or booking software, integrated payment solutions is the way to go to streamline the whole process from booking to payment and make it smooth for your staff and guests.
How to Choose a Payment Processor for Your Hotel
When choosing a payment processor consider:
- Industry Knowledge: Choose a processor with experience in the hospitality industry who knows your business.
- Flexibility and Scalability: The solution should be able to grow with your business whether you have one property or multiple.
- Security Features: PCI compliance, encryption and fraud prevention tools to protect your business and your guests.
- Customer Support: 24/7 support can be a lifesaver during peak periods.
What You’ll Need to Get Started
Getting started with Payment Nerds is simple! Here’s what you’ll need to set up your merchant account:
- Photo ID: Government issued ID to verify the business owner.
- Signed Merchant Application: Standard form to set up your account.
- Voided Check or Bank Letter: To verify your banking details.
- Bank Statements: Three months of statements to verify your financials.
- Processing History: Previous statements to help us understand your business’s payment processing needs.
- Business Docs: Business licenses, health certifications, hotel permits etc.
Software Integrations for Hospitality Payment Processing
Streamline with software integrations specific to the hospitality industry:
- Property Management Systems (PMS): Integrate with your PMS to process payments from bookings, guest charges and amenities.
- Booking Engines: Accept payments for reservations made on your website or third-party platforms.
- Mobile and On-site Payments: Process payments via mobile apps, card readers and POS systems for flexibility at check-in, check-out and on-site services.
