Overview In the hospitality sector, improving visitor happiness and maintaining seamless front desk operations depend heavily on an effective payment system. The range of payment options that hotel front desks deal with reflects the various tastes and requirements of its patrons. Staff members can deliver accurate, safe, and visitor-friendly services by being aware of these techniques. This chapter examines the main payment options that hotels take, including as credit cards, traveler's checks, personal checks, cash (both foreign and Indian), and other specific options such payments made to businesses or through travel agencies.

1 Credit Card Handling
Credit cards are one of the most widely used payment methods in hotels due to their convenience and global acceptance. Front office staff must be proficient in processing credit card transactions efficiently and securely.

• Verification Process:

  • Check the card's validity by examining the expiration date and comparing the name on the card with the guest's ID.

  • Ensure the card is not on the blacklist provided by the bank or payment gateway.

• Authorization:

  • Use the hotel’s POS (Point of Sale) system to pre-authorize the card for an estimated amount, ensuring sufficient funds are available.

• Transaction Completion:

  • Process the final amount at checkout.

  • Obtain the guest’s signature on the receipt and provide them with a copy.

• Security Measures:

  • Adhere to PCI DSS (Payment Card Industry Data Security Standard) to prevent fraud.

  • Avoid sharing card details and handle disputes with professionalism.
    

2 Travelers' Cheques and Personal Cheques

These methods are traditional but still relevant in certain situations. Hotels must know the procedures to handle them appropriately.

Travelers' Cheques:
Financial institutions provide travelers' checks, which are prepaid, fixed-amount payment instruments intended to provide travelers with a safe substitute for cash. Many hotels accept these as payment as long as the visitor can show proper identity and the checks are signed in person to ensure authenticity.

Check the guest's identification against the name on the check.

Make sure the front desk employees are present when the check is signed.

Keep a record of the check details for your records.

Personal Cheques:

• Only accept cheques from trusted guests or corporate clients.

• Ensure proper endorsement and verify the guest’s bank details.

• Be aware that personal cheques might require clearance before the guest’s departure.
  

5.3 Handling Cash (Indian and Foreign Currency)

Cash remains a common payment method, especially in regions where digital transactions are less prevalent. Handling cash requires accuracy and adherence to financial regulations.

• Indian Currency:

  • Count the cash in front of the guest and verify the amount.

  • Check for counterfeit notes using UV detectors or manual inspection.

  • Issue a receipt for every cash transaction.

• Foreign Currency:

  • Verify the exchange rates daily to provide accurate conversion.

  • Accept only authorized currencies and denominations.

  • Use the hotel’s foreign exchange facility to ensure proper documentation and compliance with legal requirements.

5.4 Other Methods of Payment

In addition to conventional methods, hotels often accept alternative payment options tailored to specific guest or corporate needs.

• Travel Agent Payments:

  • Verify the guest’s voucher or booking confirmation issued by the travel agent.

  • Ensure that the payment will be settled directly by the agent as per prior agreements.

• Bill to Company (BTC):

  • Obtain an official letter or email from the guest’s company authorizing the payment.

  • Ensure the company’s details and tax information are accurately recorded in the invoice.

  • Send the invoice promptly to the company after the guest’s checkout.

Key Terms

The Payment Card Industry Data Security Standard, or PCI DSS,: It is a collection of security guidelines created to safeguard cardholder data and guarantee the secure processing of credit card payments in the lodging sector.

Pre-authorization: A brief credit card hold put on a visitor to confirm funds and ensure payment for any possible charges while they are there.

The Point of Sale (POS) system is used to accept customer payments at hotel restaurants, bars, and spas.

Counterfeit Currency: Illegally generated or counterfeit money that the hotel is unable to accept as payment.

Exchange rate: The exchange rate, which the front desk frequently uses for currency conversions, is the amount at which one currency can be traded for another.

Travel Agent Voucher: A prepaid document issued by a travel agent to confirm and guarantee payment for a guest’s stay or services at the hotel.

Bill to Company (BTC): A payment arrangement where the guest’s charges are billed directly to the company they represent, based on prior agreements.

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Hotel Housekeeping: Operations and Management
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Hotel, Hostel and Hospital
Housekeeping
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Credit card handling
Travelers’ cheques, Personal cheques
Handling cash Indian, Foreign currency
Other methods of payment (Travel agent , Bill to Company etc.)

Situation Handling at Hotel Front Office