Fraud and Chargeback
Online transactions are “card-not-present” (CNP) transactions. As the e-commerce sector keeps expanding, opportunities for fraudulent misuse of payment networks and data theft grow right alongside. A PCI-DSS compliant setup along with 3D secure data security is necessary to eradicate fraudulent transactions.
Chargebacks, besides being costly, can damage business reputations. An excessive number of chargebacks can lead to closed merchant accounts, effectively killing the business in Dubai, UAE. While chargebacks do sometimes happen for legitimate reasons, the use of digital payment solutions for hospitality would eliminate the risk of non-legitimate chargebacks.
Card Data Security
Payment Card Industry Data Security Standards (PCI DSS) certification is required for every merchant or business accepting credit or debit cards, online or off. PCI DSS standards require merchants and processors to meet 12 criteria across six security arenas:
- Build and maintain a secure network and systems
- Protect cardholder data
- Maintain a vulnerability management program
- Implement strong access control measures
- Regularly monitor and test networks
- Maintain an information security policy
Online payment systems run the proprietary gamut across hardware and software platforms. In true real-time processing, a combination of features, including integrated systems and gateways, addresses liquidity issues and minimizes delays, while preserving online transaction integrity. Creating a seamless system is possible only when the intricate systems are speaking as one single unit. This integration between the payment systems, finance records, OTAs, and product/service details along with customer data is crucial for a successful online payment setup.
Cross-border payments can be slow, inefficient, and expensive, but they play an important role in global trade. Typically, national banking infrastructures can’t handle cross-border payments, resulting in independent and non-uniform development in technologies and software platforms that complicate or stall cross-border transactions.
Several hotels in Dubai, UAE have already started to incorporate different types of customer loyalty programs into mobile payment platforms. This can be either as end-user rewards or points. Some of the common examples include offering discounts for users who opt to upgrade a room, deals at in-house restaurants, and more.
Multi-currency and Payment Methods
Global e-commerce means accepting a variety of payment methods and currencies. E-wallets, mobile payments, and credit/debit cards help online merchants compete in international markets by allowing their customers to pay in their native currencies. For merchants, multi-currency, cross-border transactions can require new bank accounts, new business entities, and new regulatory hurdles in each national market. A merchant can easily collect payment in one currency and credit the merchant account in its home currency.
Some other examples of mobile payments in the hospitality sector are as follows.
- Google Pay
- Samsung Pay
- Apple Pay
- Paypal Transfer Systems
If you are not offering businesses the option to make mobile payments, then they won’t be impressed by your business. In some cases, they might even look for a hotel or similar establishment that accepts mobile payments.
A Beginner’s Guide to Mobile Payments
Several people who are not familiar with the usage of mobile payments will be wondering why they are gaining immense popularity in the field of hospitality. In simple words, mobile payments can be defined as transactions that are carried out by using a tablet, smartphone, or a portable device. These types of payments are actually very convenient for the hospitality sector. This is mainly because customers will not be forced to use credit cards or any other traditional methods when making payments, which is something that most modern customers will love.
A major percent of customers or guests who are arriving will surely have a mobile device with them. This means that they will be able to easily make payments, which is why mobile payment softwares are slowly but steadily becoming a mainstay when it comes to the hospitality industry. However, several hotels and other businesses in the hospitality sector might be wondering how mobile payments really work.
How Mobile Payments Work Within the Hospitality Sector
It is true that the technology behind payment software for hospitality industry or mobile payments may seem quite complex and complicated to several people. However, if you are one among them, then do not worry because we will help you learn everything about how mobile payments work within the field of hospitality.
The first and most important thing you need to understand is that a terminal that is equipped for making contactless payments must be present. The terminal is usually located at the POS (point-of-sale) station. Customers will need to place their smartphones or tablets within a few inches of the terminal.
The transaction process will start after detecting the device. After that, encrypted and detailed payment information will be sent between the devices. The process of making mobile payments will be completed in a matter of a few seconds in most cases.
The individual who is making mobile payments will need to provide a proof of identification such as entering a code or using the fingerprint scan. The transaction will be approved, which will allow guests to validate reservations and access specific rooms with ease.
Why Mobile Payments Are Gaining Immense Popularity In The Hospitality Industry
It is safe to say that mobile payment software for hospitality industry have become a popular payment option among customers, which is why it is evident that they are here to stay and gain more popularity in the coming years. It has already been established that mobile payments guarantee a convenient and secure option for completing payments in a few seconds. This is why customers will most likely opt for mobile payments over other traditional payment methods.
Higher Customer Satisfaction
It is important for businesses that are operating in the hospitality sector to understand that customer satisfaction is a critical component when it comes to creating a positive RevPAR (Revenue per available room). Guests who are offered with the latest and best technological amenities will feel that their needs and requirements are well taken care of.
This is very relevant when we are discussing the convenience offered by mobile payment platforms in the hospitality field. Guests who are happy and satisfied are more likely to leave positive reviews on social media platforms and Google, which will in turn help you get more customers.
Secure and Fast
As mentioned earlier, one of the fascinating aspects of mobile payments is that they are extremely fast. In fact, customers will be able to make payments in a few seconds and you will receive the payment as soon as the customer completes the payment in most cases. Another interesting thing about mobile payments is they are also very secure.
In other words, mobile payments are quite secure and very fast when compared to other traditional payment methods. The same level of encryption is used by several financial institutions and banks for enacting transfers every day. Guests too will remain confident because their personal details will always be hidden.
Another important thing to note is that the Covid19 pandemic has made hygiene a lot more important than ever to guests and it includes when making payments too. This is another reason for the increasing popularity of mobile payments among guests.
Common Examples of Mobile Payments in Hospitality Industry
As mentioned earlier, mobile payments have quickly become one of the popular payment options for guests and customers. The major reasons for the immense popularity of mobile payments are the comfort they offer to customers. You don’t have to write cheques or deposit money in banks anymore. All you need to do is to make payments through your smartphone or tablet and then that’s it. Here are a few common examples of mobile payments in the field of hospitality.
Dedicated Mobile Banking Apps
Most of the banks provide some type of mobile payment solution or system to customers in the form of an application that can be downloaded. These applications usually offer customers and guests the option to make contactless payments at hotels and other similar establishments. The primary goal behind this is to make it really easy for customers to make payments along with ensuring that their personal details are safe and secure.
If your requirements are not addressed in the above please do tell us more about your project. It is likely that we will be able to address your needs.