Excerpt from mirai
Payment-collection and refund management is a big headache for most hotels. It requires more and more time, generates direct costs and is a source of incidents and claims from clients, with the resulting chargebacks being highly frustrating.
The problem lies in the lack of tools and automations in hotel operations when it comes to receiving direct-payment bookings guaranteed by credit card. This results in unsafe manual procedures which, in most cases, do not meet the current regulation on PCI security standards.
Secure payment, also known as 3D Secure, to prevent chargebacks
Having the client’s credit card, even the CVV2 number, as a guarantee is no longer enough to guarantee payment. The high level of fraud in Internet payments added to the dishonesty of many clients have resulted in a high number of chargebacks, which generate a considerable feeling of helplessness in the industry. By direct payment, we are referring to:
- How to charge non-refundable rates in a secure manner? This only affects you, obviously, if you work with this type of rate, a widespread practice due to the many advantages it offers which we already explained in ’Non-refundable rates: Everything you need to know’
- In flexible rates, how to charge the penalty in the event of cancellations made out of time or no-shows in a secure manner?
It affects you as soon as you accept a direct-payment booking with flexible cancellation policy. It therefore affects most hotels.