DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE

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Credit Card Policy for Hotel

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Credit Cards:

Introduction:

The credit card is an integral part of the business. Increasing use of credit card and its
users, with the use of international credit card, it is necessary to have an efficient credit
card acceptance policy.

Accepted Credit Card is like cash and loss due to credit card is loss of business.

Inefficient and deficient handing of Credit card also results in cash loss and unsatisfied
guest.

Hence an efficient Credit Card policy is required to identify the issues involved in
acceptance of credit cards and providing solutions to them.

Credit Card Acceptance & Reconciliation:

Hotel’s policy is to require a deposit/Pre-authorization on Credit Cards. It should be

ensured that details of pre-authorization are entered in to the system in Guest Folio.
When E-Credit Card electronic fund transaction terminals (EDCs) are not available i.e.
out of order due to any reason, manual impression machines (Zip Zap machines)
vouchers should be processed through the Front Office and reconciled in the city ledger
by credit card totals. Pre-authorization should be taken on telephone and pre-
authorization number and amount entered in the system in the Guest Folio.

The cashier will only close the “batch” once they have reconciled physically each credit
card transaction, taking care of the amounts posted to the payment reports from the
PMS.

City ledger should post daily the “batch trans” totals into separate city ledger accounts
for each credit card type and reconcile the daily credit card totals with the PMS cashiers
report. The accounts receivable assistants should investigate differences immediately. If
a refund is required it should be referred to Senior Accountant Financial Controller for
making a refund. All credit card accounts should be kept current i.e. under 30 days.
DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Card Policy for Hotel

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In order to avoid any request for charge back on credit card following
procedures should be ensured:

A ‘copy request’ is a request made by the card issuer to the merchant bank for a copy of
the transaction receipt of a particular transaction. A charge-back is the reversal of the
monetary value, in whole or in part, of a particular transaction by the card issuer to the
merchant bank and usually by the merchant bank to the hotel. Charge-backs can be
very costly to the property given the hotel lose both the monetary value of the
transaction amount, the cost of the services provided to the guest and also incur the
cost of recovery, the ‘charge-back’. In order to avoid a ‘charge back’ following care
should be taken by the associates on duty at the Front Office and at the Outlets:

All the credit card charge slips should have guest signature and care should be taken to
ensure that the signature on the back of credit card is same as on the charge slip. The
slips are unfailingly sent to Income Supervisor along with Guest Folio and F&B checks.
Income Supervisor will take necessary steps for filing and safe keeping of these charge
slips.

Associates are not permitted to manually key in account numbers. If the card cannot be
electronically read, use a manual imprinter (Zip Zap voucher) to imprint the card’s
embossed information on the transaction receipt.

One copy of the signed Charge Slip should be attached to the folio and another should
be handed over to guest for his records. It should be ensured that all credit card POS
terminals transmit their transaction batches at the conclusion of a day that is the Duty
Manager while making date change should ensure that all the batches have been closed
on all POS machines. All staff with access to a cashiering function, i.e. utilizing the EDC
terminal should be instructed that all void transactions must be performed immediately
the mistake necessitating the void arises. This may cause the guest some
inconvenience, it will, however, prevent an erroneous charge being made to the guest’s
card.
DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Card Policy for Hotel

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At the Point of sale:

Ensure the card presented is legitimate by checking the security features:
 Hologram
 Account number on card must match the account number on credit card
terminal/PMS system
 Signature on back of card must match signature on credit card transaction
receipt
 Always obtain an imprint of the credit card in large transactions or when
electronic machine is not working or the magnetic strip has worn out.
 Ensure the card has not expired

To reduce charge-back losses:

At the point of sale:
 Always obtain a signature of guest on the credit card transaction receipt
 Ensure that an authorization has been obtained for the total amount of the sale
 Ensure receipt paper are maintained to provide the customer with a clear, legible
receipt

Afterthe sale:
 Ensure all credit card batches are settled in a timely basis
 Retain all credit card transaction receipts for no less than 18 months
 Acknowledge the acceptance of a charge-back as quickly as possible to ensure
customer satisfaction
 Reconcile all credit card batches on a daily basis, immediately investigate any
discrepancies

Credit Card Refunds:

Voids, charge-backs and refunds are often complicated.

1. A void corrects an identified problem before the EDC terminal makes the batch
transfer to the card issuer. E.g. A guest is checked out, his folio totals USD 100,
the cashier mistakenly charges his card USD 1,000. The guest points this out; the
cashier voids the transaction and re processes for the correct amount
2. Charge backs are when guest refutes the charge and requests the credit card
issuer for refund.
3. Refunds refer to a credit entry being processed to a credit card post the batch
transfer to the card issuer. E.g. A guest is checked out, his folio totals USD 100,
the cashier mistakenly charges his card USD 1,000. The guest does not notice
this. At end of the day the cashiers report will not balance with the daily revenue
report. A refund of USD 900 will have to be made to the guest
DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Card Policy for Hotel

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Credit Card Refund Procedures:

The following procedures will be followed when refunding a guest:

Only Financial Controller will initiate any refund on cards & in absence of Financial
Controller, Senior Accountant can initiate any refund on cards. The Financial Controller
will:
 Ensure that a credit will only be issued to the card erroneously charged.
 Ensure the sequential control of refunds and,
 Ensure that a valid explanation supports the refund and,
 Ensure that the card refunded is the card that belongs to the guest.

There shall be no deviation from this procedure:

Third Party Credit Cards:

If a guest proposes to pay his account using a third party’s credit card, the Hotel will
require:

A) The owner of the card to bring the credit card to the Finance department.
Approval by signed letter or fax from the cardholder is unacceptable.

B) The Finance Team Leader or his designated representative will take a pre-
approval based on the estimated total guest spend.

C) The owner of the card will be required to sign the pre-approved credit card
voucher in person.

D) If during the guest’s stay the folio total exceeds the pre-approved amount, the
above process (A-C) will be repeated.

E) If process (A-C) cannot be carried out by the cardholder in person, the guest
should be asked to settle the amount immediately in cash for such excess
amount.

Third Party credit cards are not acceptable in case of PAID OUTS.