For businesses processing virtual credit cards, the main pain issue is cash flow. With a virtual credit card from Booking, the hotel won’t see the money until a week or month later, depending on the terms of their Booking account.
On the other hand, hotels won’t be able to upsell their complementary services, for example, room upgrades, leisure activities, exclusive guest offers, food and beverages, special features in the room, etc.
Besides, the interchange fees are higher for virtual credit cards, because these types of cards require more steps for processing payments.
So, why are hoteliers still using VCC?
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- They are not aware of the benefits of using the guest’s “real” credit card.
- Fear of change: In the UK 70% of hoteliers’ bookings come from Booking, therefore they might be afraid to take risks since Booking is their main source of revenue
- Trust in Booking: “it’s more secure for the guests to pay Booking instead of the Hoteliers”.
- Commissions for Booking payout can be slightly lower than on other platforms, software, or services (1.3% for Europe, in some cases as low as 1.1%).
- Pre-formatted Booking.com sales term text: payment schedule only allowing charging the first night, 50% of the reservation, or 100%.
- Insurance* for late cancellations or no-shows.
With Amenitiz Pay – our payment solution that integrates easily into our PMS – you can ensure you get paid even if the guest cancels the reservation.
Choose the rules to collect your payments
Get 30% in advance from the guest’s reservation. Have cash flow.
With Amenitiz Pay, get a notification if a card, being issued by a guest from Booking, is invalid.
NOTE: On booking, if a credit card is proven invalid, the hotel can cancel the reservation within 24 hours without paying a fee.
Get Amenitiz Pay to centralise, automate and manage your guests’ payments.
