Reservation Key, Credit Cards and Deposits

[JimBoone]

Okay, I'm attempting to follow the suggestions of several friends and swap from a paper system to Reservation Key, at the same time I plan on changing credit card processors and adding authorize.net so that cards can be processed with online reservations. One of the questions asked of me is the expected percentage of cards accepted "online" V.S. cards swiped in person.
Along that same line of thought, how much of an advance deposit would you suggest I require and how far in advance should it be charged?
At present with our paper system I usually tell folks that their card "may" be charged several days before their arrival and if needed they must cancel prior to those last few days to avoid a charge, however for those who book months in advance it would be nice to charge some sort of a fee at an earlier point.
Ideas and suggestions are much appreciated.

 

[EmptyNest]

I would charge at least one night stay in advance when reservation is made as the deposit. Do not hold the card but charge it then and there so you know it is good or not.,

 

[Copperhead]

GOOD for you! I believe once you have this all set up and going the way you want you will be so very happy and never think twice about going back.
I would take a deposit. Some take 1 night others take 50% of reservation and others just take a small charge (usually non-refundable) to make sure the card provided is good.

 

[Morticia]

We get about 50% of our reservations online. However, I think the question may mean how many reservations will you charge the deposit on thru that system.
You can process everything thru authorize, from what I understand. Or you can do the deposit thru authorize and the balance with the credit card machine.
Make the deposit easy on yourself. Either one night or a set amount. We do $100 because it's easy to remember when I'm standing in front of the machine hand entering everything.

 

[gillumhouse]

Many hotels take the first night when the reservation is made. If you are not comfortable with that, I would take a minimum of $25 non-refundable deposit at the time of making the reservation - whether by phone or online. That will tell you if the card is good AND put some "skin in the game" with the reservation without having too much to scare them off. That will at least cover fees for running the card.

 

[JimBoone]

GOOD for you! I believe once you have this all set up and going the way you want you will be so very happy and never think twice about going back.
I would take a deposit. Some take 1 night others take 50% of reservation and others just take a small charge (usually non-refundable) to make sure the card provided is good..

Me, for an old guy I like computers, but Maxine unfortunately is not at all comfortable with them, it may mean I get to take all the calls and reservations personally unless she feels differently in the future.

 

[JimBoone]

We get about 50% of our reservations online. However, I think the question may mean how many reservations will you charge the deposit on thru that system.
You can process everything thru authorize, from what I understand. Or you can do the deposit thru authorize and the balance with the credit card machine.
Make the deposit easy on yourself. Either one night or a set amount. We do $100 because it's easy to remember when I'm standing in front of the machine hand entering everything..

Yes, I think you state the question better than I did, my credit card person is wanting to estimate the portion of charges between authorize and in person.
I don't consider us as classy as most of our members here and I wouldn't want to frighten away potential guests with too high of an advance charge at the time of reservation, but I would like a deposit to be sure the card was valid and discourage those who just want to tie up a room just in case they decide to visit.

 

[JimBoone]

Many hotels take the first night when the reservation is made. If you are not comfortable with that, I would take a minimum of $25 non-refundable deposit at the time of making the reservation - whether by phone or online. That will tell you if the card is good AND put some "skin in the game" with the reservation without having too much to scare them off. That will at least cover fees for running the card..

Thanks, that is along the line of what I was thinking, a smaller deposit to test the card and eliminate lookers. I see us as clean and attractive, but most of our guests seem to be just everyday folks, too large of a deposit might frighten some away.

 

[Generic]

I get about 99% of my reservations online. Usually once a year I take a reservation by telephone.
That said, the question of taking a deposit is a cultural one as well as a competitive one. I don't take a deposit, but I hold the card and I can process an authorization on the account. I find that it works for me. About 90% of my processing is done here and last year it was about 50% with chip. This year it is finally leaning towards 90% with chip since the US instituted it. It's still about 50% with PIN. Even if I do a keyed auth, I still process the end charge with C&P (EMV). I don't use Authorize.net at all and when I process a 3rd party payment I do it via Square invoicing so they are responsible for the security of the transaction including keeping the IP, etc.
It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

 

[OnTheShore]

Jim, we take a deposit of 25% of the rent (not including taxes or any other fees, e.g. pet fee) at the time of reservation to confirm the res. In the event of cancellation (at any time), it is in non-refundable unless we succeed in renting the space to someone else -- fortunately cancellations are very rare, for us. We are using ResKey with PayPal for online reservations, but by far most of our reservations are made by e-mail inquiry, with the deposit sent by check or through Square invoicing online. Most of our reservations are made well in advance, so plenty of time for the check to arrive and clear. We do get a few phone calls, which we always follow up by e-mail to complete the transaction.
Guests still ask if the calendars on our website are up-to-date, and we tell them, yes that is what we look at to see what is available!
Lately we seem to be doing a lot of business through Air. These reservations tend to be much less far in advance than our usual fare. Air handles the payment, but we collect the taxes and any other fees not handled by Air (e.g. pet fees) upon arrival. We are driving the availability calendar on Air (and other sites) from ResKey using the ical links.

 

[Morticia]

GOOD for you! I believe once you have this all set up and going the way you want you will be so very happy and never think twice about going back.
I would take a deposit. Some take 1 night others take 50% of reservation and others just take a small charge (usually non-refundable) to make sure the card provided is good..

Me, for an old guy I like computers, but Maxine unfortunately is not at all comfortable with them, it may mean I get to take all the calls and reservations personally unless she feels differently in the future.
.

I know several other inns where one half of the couple is assigned to be the reservation taker, you're not the only one.

 

[Morticia]

I get about 99% of my reservations online. Usually once a year I take a reservation by telephone.
That said, the question of taking a deposit is a cultural one as well as a competitive one. I don't take a deposit, but I hold the card and I can process an authorization on the account. I find that it works for me. About 90% of my processing is done here and last year it was about 50% with chip. This year it is finally leaning towards 90% with chip since the US instituted it. It's still about 50% with PIN. Even if I do a keyed auth, I still process the end charge with C&P (EMV). I don't use Authorize.net at all and when I process a 3rd party payment I do it via Square invoicing so they are responsible for the security of the transaction including keeping the IP, etc.
It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN..

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.

 

[Generic]

I get about 99% of my reservations online. Usually once a year I take a reservation by telephone.
That said, the question of taking a deposit is a cultural one as well as a competitive one. I don't take a deposit, but I hold the card and I can process an authorization on the account. I find that it works for me. About 90% of my processing is done here and last year it was about 50% with chip. This year it is finally leaning towards 90% with chip since the US instituted it. It's still about 50% with PIN. Even if I do a keyed auth, I still process the end charge with C&P (EMV). I don't use Authorize.net at all and when I process a 3rd party payment I do it via Square invoicing so they are responsible for the security of the transaction including keeping the IP, etc.
It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN..

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.
.

And from what I see, a few American companies are fighting back. HD is suing them. And WallyWorld is not just suing them, they are actually kicking V out of their stores in Canada. I guess the stores are tired of the losses and fees. WallyWorld at one time threatened to create their own card to compete with them. Targé insisted on C&P for their cards and switched companies to do it.

 

[JimBoone]

Jim, we take a deposit of 25% of the rent (not including taxes or any other fees, e.g. pet fee) at the time of reservation to confirm the res. In the event of cancellation (at any time), it is in non-refundable unless we succeed in renting the space to someone else -- fortunately cancellations are very rare, for us. We are using ResKey with PayPal for online reservations, but by far most of our reservations are made by e-mail inquiry, with the deposit sent by check or through Square invoicing online. Most of our reservations are made well in advance, so plenty of time for the check to arrive and clear. We do get a few phone calls, which we always follow up by e-mail to complete the transaction.
Guests still ask if the calendars on our website are up-to-date, and we tell them, yes that is what we look at to see what is available!
Lately we seem to be doing a lot of business through Air. These reservations tend to be much less far in advance than our usual fare. Air handles the payment, but we collect the taxes and any other fees not handled by Air (e.g. pet fees) upon arrival. We are driving the availability calendar on Air (and other sites) from ResKey using the ical links..

I really can't complain about our present paper booking system and maybe I'm just stirring up problems with Maxine to want to change, but in the long term I think it may help position us for our daughter to assume a larger part in the operation. Hopefully having availability online would cut down on some calls during folks planning stages as well.
The larger part of our guests range from one to several nights, and I suppose most are either families or older folks like us that enjoy a smaller quiet place or Maxine's large garden. Many don't reserve all that far ahead of their desired dates, but some book far ahead to hold a date "in case" and that's where having to put a little "skin in the game" might cut down on some churn in the reservations.

 

[Momma Smurf]

I get about 99% of my reservations online. Usually once a year I take a reservation by telephone.
That said, the question of taking a deposit is a cultural one as well as a competitive one. I don't take a deposit, but I hold the card and I can process an authorization on the account. I find that it works for me. About 90% of my processing is done here and last year it was about 50% with chip. This year it is finally leaning towards 90% with chip since the US instituted it. It's still about 50% with PIN. Even if I do a keyed auth, I still process the end charge with C&P (EMV). I don't use Authorize.net at all and when I process a 3rd party payment I do it via Square invoicing so they are responsible for the security of the transaction including keeping the IP, etc.
It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN..

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.
.

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.

Or with multiple cards people will use the same PIN which eventually degrades security. Also, adding the PIN is a time factor that slows down the transaction process and requires more equipment available especially in restaurants. At least, that's what the current commentary is. We are getting PIN people from abroad that say "oh I've used my card in tons of places in the States, they've never needed a PIN. Yeah, that's because they don't even have chip readers yet and are swiping it.

 

[Jcam]

for me I would make it a set amount easier for you and guest ie $30 - everyone knows where they are
35% say you have to work out for the booking what it is and so do they which is hard work for the customer ie 4 nights at £100 a night is what? difficult to do on the fly while having a crafty look online at work.

 

[EmptyNest]

Jim, we take a deposit of 25% of the rent (not including taxes or any other fees, e.g. pet fee) at the time of reservation to confirm the res. In the event of cancellation (at any time), it is in non-refundable unless we succeed in renting the space to someone else -- fortunately cancellations are very rare, for us. We are using ResKey with PayPal for online reservations, but by far most of our reservations are made by e-mail inquiry, with the deposit sent by check or through Square invoicing online. Most of our reservations are made well in advance, so plenty of time for the check to arrive and clear. We do get a few phone calls, which we always follow up by e-mail to complete the transaction.
Guests still ask if the calendars on our website are up-to-date, and we tell them, yes that is what we look at to see what is available!
Lately we seem to be doing a lot of business through Air. These reservations tend to be much less far in advance than our usual fare. Air handles the payment, but we collect the taxes and any other fees not handled by Air (e.g. pet fees) upon arrival. We are driving the availability calendar on Air (and other sites) from ResKey using the ical links..

I really can't complain about our present paper booking system and maybe I'm just stirring up problems with Maxine to want to change, but in the long term I think it may help position us for our daughter to assume a larger part in the operation. Hopefully having availability online would cut down on some calls during folks planning stages as well.
The larger part of our guests range from one to several nights, and I suppose most are either families or older folks like us that enjoy a smaller quiet place or Maxine's large garden. Many don't reserve all that far ahead of their desired dates, but some book far ahead to hold a date "in case" and that's where having to put a little "skin in the game" might cut down on some churn in the reservations.
.

You can't go wrong with online reservations...really...no matter what Maxine thinks... and taking some sort of a deposit is a must. Like you say "skin in the game." Believe me it will really help you for the future.

 

[Jcam]

Jim, we take a deposit of 25% of the rent (not including taxes or any other fees, e.g. pet fee) at the time of reservation to confirm the res. In the event of cancellation (at any time), it is in non-refundable unless we succeed in renting the space to someone else -- fortunately cancellations are very rare, for us. We are using ResKey with PayPal for online reservations, but by far most of our reservations are made by e-mail inquiry, with the deposit sent by check or through Square invoicing online. Most of our reservations are made well in advance, so plenty of time for the check to arrive and clear. We do get a few phone calls, which we always follow up by e-mail to complete the transaction.
Guests still ask if the calendars on our website are up-to-date, and we tell them, yes that is what we look at to see what is available!
Lately we seem to be doing a lot of business through Air. These reservations tend to be much less far in advance than our usual fare. Air handles the payment, but we collect the taxes and any other fees not handled by Air (e.g. pet fees) upon arrival. We are driving the availability calendar on Air (and other sites) from ResKey using the ical links..

I really can't complain about our present paper booking system and maybe I'm just stirring up problems with Maxine to want to change, but in the long term I think it may help position us for our daughter to assume a larger part in the operation. Hopefully having availability online would cut down on some calls during folks planning stages as well.
The larger part of our guests range from one to several nights, and I suppose most are either families or older folks like us that enjoy a smaller quiet place or Maxine's large garden. Many don't reserve all that far ahead of their desired dates, but some book far ahead to hold a date "in case" and that's where having to put a little "skin in the game" might cut down on some churn in the reservations.
.

You can't go wrong with online reservations...really...no matter what Maxine thinks... and taking some sort of a deposit is a must. Like you say "skin in the game." Believe me it will really help you for the future.
.

for me we are taking on a second property and that i am setting up from the start as you pay when you book - most of our market is 1 night business people so its not a problem for them and we can't be messing about during breakfast sorting out money and who has paid and who hasn't - can refund if I choose to but its my choice. currant policy was implemented by PO's who trusted people - me ive come to the realization too many people cancel last minute and are simply placeholding with us while continuing to look around - just don't need those kind of people.

 

[Morticia]

I get about 99% of my reservations online. Usually once a year I take a reservation by telephone.
That said, the question of taking a deposit is a cultural one as well as a competitive one. I don't take a deposit, but I hold the card and I can process an authorization on the account. I find that it works for me. About 90% of my processing is done here and last year it was about 50% with chip. This year it is finally leaning towards 90% with chip since the US instituted it. It's still about 50% with PIN. Even if I do a keyed auth, I still process the end charge with C&P (EMV). I don't use Authorize.net at all and when I process a 3rd party payment I do it via Square invoicing so they are responsible for the security of the transaction including keeping the IP, etc.
It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN..

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.
.

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.

Or with multiple cards people will use the same PIN which eventually degrades security. Also, adding the PIN is a time factor that slows down the transaction process and requires more equipment available especially in restaurants. At least, that's what the current commentary is. We are getting PIN people from abroad that say "oh I've used my card in tons of places in the States, they've never needed a PIN. Yeah, that's because they don't even have chip readers yet and are swiping it.
.

It is more customary in the US to take deposits. But not as common in Canada, where people expect to process with card in hand on a portable bluetooth terminal with Chip & PIN.

We are now finding out why we don't have PINs here - Visa and MC are blocking it because they will lose money. Not, as they previously stated, because Americans are too stupid to memorize a number.

Or with multiple cards people will use the same PIN which eventually degrades security. Also, adding the PIN is a time factor that slows down the transaction process and requires more equipment available especially in restaurants. At least, that's what the current commentary is. We are getting PIN people from abroad that say "oh I've used my card in tons of places in the States, they've never needed a PIN. Yeah, that's because they don't even have chip readers yet and are swiping it.

PIN transactions are faster. At least with the PIN enabled terminals. Guest enters PIN , receipt prints, good to go. No pen, no signature, easy peasy.
Seriously. My terminal takes the same time to process whether it's a PIN transaction or not. It's the chip part that's slower. But no signature. That part saves time. Because a guest with three bags slung over shoulders cannot sign the receipt.
If a guest chooses to compromise their card security, bank security, email security, etc by reusing PIN 's that's their problem, not mine.

 

[Breakfast Diva]

Jim, not only will it help sell your rooms, but the advantage of having all the reports, including the amount of tax you've collected, is a HUGE time saver. Once ResKey is set up and tweaked, Maxine will be able to manage making a reservation in it quite easily. It'll be scary at first, but once you and she get used to it you'll wonder how you ever got buy without it.
Our deposits are 1 night lodging if they're only staying 1 night and 50% for 2 or more nights. It's a bit stiffer than most, but it's because of our location. We charge a $30 cancellation fee to offset any credit card charges we have to pay to charge & cx their card.
Your kids will be taking your property into the future. You really need to help pave the way for their transition.