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Simplifying acceptance of virtual credit cards for travel sellers
The webinar held on April 17, 2014, focused on simplifying the acceptance of virtual credit cards for travel sellers, featuring presentations from WEX Inc. and HTNG. Key topics included the benefits of virtual payments, hotel processing best practices, and the challenges faced in hotel acceptance of virtual credit cards. The HTNG workgroup aims to address these challenges and enhance interoperability between various systems in the hospitality industry.
Simplifying acceptance of virtual credit cards for travel sellers
- 1. Simplifying acceptance ofvirtual 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
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- 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
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- 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
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- 37. Thank you! Send yourquestions and comments to kevin@tnooz.com Replay and presentation of webinar will be available on www.tnooz.com