Do you manage financial operations at a hotel, OTA, airline or any other e-commerce site that sells travel? Then don't miss this FREE webinar presented by Tnooz and WEX, a leader in VCC payments for the travel industry. In our webinar you will discover how: a VCC transaction does not require any different processes than a physical plastic card understanding trends in VCC acceptance can lead to greater acceptance and best practices experience with clients confirms security, financial, and workflow benefits for acceptance from hotel suppliers the hospitality sector is working through a key industry organization to develop a framework for facilitating VCC payments Our panelists are: Nicole Tackett, manager for global product and marketing, WEX Virtual Deena Jones, senior product manager for Travel, WEX David Sjolander, COO, Hotel Technology Next Generation (HTNG) Kevin May, editor and moderator, Tnooz Gene Quinn, CEO and producer, Tnooz

1. Simplifying acceptance of virtual
credit cards for travel sellers
Webinar
17 April 2014

2. Your hosts
Kevin May
Editor & moderator
Gene Quinn
CEO & producer

3. Webinar
April
17,
2014
Simplifying
Hotel
Acceptance
of
Virtual
Credit
Card
Payment
Solu8on

4. Today’s
Presenters
Nicole
Tacke7
–
WEX
Inc.
Manager,
Global
Product
&
Marke4ng
Nicole.tacke?@wexinc.com
Deena
Jones
–
WEX
Inc.
Senior
Product
Manager,
Travel
Deena.jones@wexinc.com
David
Sjolander
-­‐
HTNG
Chief
Opera4ng
Officer
David.sjolander@htng.org

5. Agenda
• Introduc8ons
• WEX
Overview
• WEX
Travel:
how
does
it
work?
• Hotel
Distribu8on
Channel
• Hotel
Processing
Best
Prac8ces
• Hotel
Acceptance
• HTNG
and
Workgroup
Overview

6. Poll
Ques8on
#1
Where
are
you
located?
1. North
America
2. EMEA
3. La8n
America
4. Asia
Pacific

7. Poll
Ques8on
#2
What
travel
business
segment
do
you
represent?
1. Hospitality
supplier
2. Other
supplier
3. OTA
4. TMC,
corp
buyer,
travel
agency,
other
intermediary
5. Technology
solu8on
provider
or
consultant

8. WEX
Overview
Nicole
Tacke7
Manager,
Global
Product
&
Marke4ng
Nicole.tacke?@wexinc.com

9. Who
We
Are

10. WEX
Global
Growth

12. How
It
Works

13. Virtual
Payments
Benefits
• Reduc8on
in
fraud
and
misuse
• Financial
rebate
incen8ve
• Timely
transfer
of
funds
globally
• Automa8on
of
reconcilia8on
• Cost
and
process
improvement
• One-­‐8me
use,
secure
account
number
• Global
payment
pla_orm
• Real-­‐8me
processing
• Transac8on
specific
controls
• Enhanced
data
quality
WEX
Travel:
A
New
Approach

14. IT
AutomaOon
Benefits
• WEX
pioneered
single-­‐use
B2B
virtual
card
payments,
13
years
experience
• No
upfront
or
ongoing
fees
for
implementa8on
and
soaware
• Seamless,
nimble
integra8on
with
exis8ng
systems
via
web
service
• Updates
do
not
require
code
change
• Capacity
to
support
24/7
environments
©2013
WEX
Inc.
Confiden8al
and
proprietary.
WEX
Travel:
IT
Innova8on

15. Poll
Ques8on
#3
What
is
the
main
obstacle
keeping
your
organiza8on
from
implemen8ng
a
VCC
payment
solu8on?
1. Convincing
suppliers
to
accept
virtual
credit
card
2. Integra8on
to
back
end
systems
3. Shortage
of
IT
resources
for
implementa8on
or
API
dev
4. Privacy/security
concerns
5. My
organiza8on
currently
u8lizes
a
VCC
payment
solu8on

16. Insights
into
Hotel
Acceptance
and
Best
Prac8ces
Deena
Jones
Senior
Product
Manager,
Travel
Deena.jones@wexinc.com

17. Complexi8es
of
Hotel
Distribu8on

18. Hotel
Supplier
Best
Prac8ces
• Pre-­‐authoriza8on
based
on
guarantee/deposit
rule
• Ensure
the
authoriza8on
code
is
presented
with
the
subsequent
pos8ng
of
transac8on
• Standard
check-­‐in
procedure
2
folios
• Check-­‐out
se?lement
transacted
in
property
currency
• Par8al
payments
can
be
transacted
to
the
sum
of
the
total
authorized
amount
• Par8al
or
full
refund
can
be
transacted
against
VCC,
however
you
cannot
charge
it
again

19. Case
Study
–
Decline
Authoriza8ons
• Trend
Iden8fica8on
of
decline
authoriza8on
across
a
hotel
chain
• Analysis
revealed
that
PMS*
scheduled
job
was
a?emp8ng
authoriza8on
of
VCC
from
8me
of
crea8on
to
check-­‐in
for
all
reserva8ons
for
all
integrated
OTAs
• SoluOon
PMS*
configura8on
changes
made
at
all
proper8es
so
proper
reserva8on/gtd
type
is
associated
to
the
reserva8ons
• ResoluOon
Impact
for
OTAs
and
travel
companies
is
reduc8on
of
false/posi8ve
alerts
on
decline
authoriza8ons.
For
the
hotel
suppliers
is
reduc8on
decline
authoriza8on
a?empts
*Property Management System

20. Poll
Ques8on
#4
What
is
the
main
challenge
in
hotel
acceptance
of
VCC
payment
solu8on?
1. Merchant
fee
associated
with
processing
2. Educa8on
in
understanding
the
benefits
of
acceptance,
which
offset
merchant
fee
3. No
standard
workflow
processes
on
hotel
side
for
processing

21. Supplier
Acceptance
Benefits
* Market research conducted by
Ardent Partners in June 2013
*
• Faster
receipt
of
payments
• Reduc8on
of
payroll
expense
• Improved
payment
data
• Guaranteed
payment
• Controls
on
card
reduce
hotel
losses
• No
addi8onal
processes
• No
addi8onal
soaware/hardware
• Security

22. WEX’s
Ini8a8ve
to
Drive
Efficiencies
• Authoriza8on
and
transac8on
data
trend
analysis
• Leverage
our
travel
companies
rela8onships
with
the
hotel
chains
to
work
through
the
processing
challenges
• WEX
team
collabora8on
of
SME’s
in
Payments,
OTA
opera8ons
and
hotel
systems
and
opera8ons
enables
a
complete
end-­‐to-­‐end
understanding
of
the
payment
workflow
in
a
reserva8on
network
• Ac8ve
in
hospitality
technology
organiza8ons
to
con8nue
to
be
an
innova8ve
payment
solu8on
in
the
travel
ver8cal

23. HTNG
and
Workgroup
Overview
David
Sjolander
Chief
Opera4ng
Officer
David.sjolander@htng.org

24. HTNGNORTHAMERICANCONFERENCE2014
Virtual
Credit
Cards
Workgroup Incubation
DAVID
SJOLANDER
CHIEF
OPERATING
OFFICER
HOTEL
TECHNOLOGY
NEXT
GENERATION
WWW.HTNG.ORG

25. What
is
HTNG?
• Non-­‐Profit
Trade
Associa8on
• Funded
by
4,000+
members
to
– Solve
common
industry
technology
problems
– Promote
interoperability
of
systems
– Encourage
development
of
new
meaningful
technologies
• Board
consists
of
senior
IT
execu8ves
from
17
global
hotel
chains
• Membership
represents
over
33,000
hotels
and
180
technology
suppliers
in
81
countries

26. Current
Ac8ve
HTNG
Workgroups
• Above
Property
Systems
• Event
No8fica8on
• Event
RFP
Submission
• Intelligent
Guestroom
• Point
of
Sale
• Product
Distribu8on
• Fiber
to
the
Guestroom
• Mobile
Device
Iden8fica8on
and
Authen8ca8on
• Entertainment
Device
Control

27. HTNG
Released
Payment
Specifica8ons
• Data
Proxy
(tokeniza8on)
• Payment
Processing
• Hosted
Payment
Capture
Systems
• Secure
Payments
Framework

28. Hotel
Challenges
with
VCC
• Determining
from
the
number
that
the
card
is
virtual
rather
than
tradi8onal
• Understanding
condi8ons
for
payment:
– Can/should
the
card
be
pre-­‐authorized?
– Is
it
for
a
specific
amount
or
a
range?
– Is
there
a
specific
date
range
for
processing?
• Dealing
with
faxes
and
emails
that
contain
the
full
16-­‐digit
credit
card
number

29. HTNG
VCC
Workgroup
There
is
neither
a
way
for
hotels
to
dis8nguish
virtual
credit
cards
(and
other
card
not-­‐present
situa8ons)
from
tradi8onal
ones,
nor
a
systema8c
way
to
communicate
the
business
rules,
payment
instruc8ons,
and
terms
and
condi8ons
of
using
them.
This
results
in
inefficiencies,
security
and
PCI
compliance
issues,
declined
payments,
poor
customer
check-­‐in
experience
and
addi8onal
back
office
processing.
Business
Problem
Statement

30. HTNG
Workgroup
Process
ProspecOve
IncubaOon
Chartered
and
AcOve
Maintenance
ReOred

31. VCC
Workgroup
Status
• Currently
in
incuba8on
stage
• 1st
Mee8ng
held
on
Friday,
11
April
2014
– 13
companies
par8cipated
– Began
to
write
charter

32. Par8cipants
will
likely
include:
• Hotel
companies
• Virtual
Credit
Card
issuers
• Credit
card
associa8ons
(Visa
and
MC)
• Core
technology
suppliers
(CRS/PMS)
• Distribu8on
partners
(GDS,
TMC,
OTA)
• Credit
card
processing
middle-­‐ware
suppliers

33. Next
Steps
• Chartering
call
#2
-­‐
Tuesday,
April
22nd
at
noon
EDT
• Send
an
email
to
workgroups@htng.org
if
you
are
interested
in
par8cipa8ng
– HTNG
membership
not
required
un8l
charter
is
approved

34. Ques8ons?

35. We
see
corporate
payments
differently.
Thank
You!
Nicole
Tacke7
Manager,
Global
Product
&
Marke4ng
Nicole.tacke?@wexinc.com
Deena
Jones
Senior
Product
Manager,
Travel
Deena.jones@wexinc.com
David
Sjolander
Chief
Opera4ng
Officer
David.sjolander@htng.org

36. Q & A

37. Thank you!
Send your questions and comments to kevin@tnooz.com
Replay and presentation of webinar will be available on
www.tnooz.com