June 11, 2018

Hotels in dire need of a payment revolution


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.

Secure payment, also known as ‘3D Secure’, is the only way to charge on a credit card without the possibility of a chargeback by the client. A ‘secure payment’ implies the confirmation of identity through the use of a validation PIN number which the client always introduces on the bank’s website (never on the hotel’s website) and this, for legal purposes, is as good as if the client was at the hotel, showed his identification and signed the paper.

On the other hand, we have ‘unsafe payments’, in which the client has not validated his identity in which the client has not validated his identity and which can easily be charged back with, for example, a police report. Furthermore, the client has a deadline of around 120 days to do so, so until this whole time has passed, you cannot be sure that you will receive the money.

An added problem is that not all credit cards support ‘secure payment’ and only accept ‘unsafe payments’. At the tail end of the implementation of secure payments is almost the whole of Latin America and the United States. However, in Europe and Japan, secure payments enjoy a widespread use. Therefore, when configuring a payment gateway on your website, do it properly so that you demand ‘secure payment’ if the card supports it but also allowing ‘unsafe payment’ in order not to lose out on bookings with cards that don’t support it. Only accepting ‘secure payments’ will mean that you will lose out on bookings made by users whose cards don’t support it.

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