Oct 29, 2024

— Photo by Mews When you hear the words ‘payment processing’, how do they make you feel? They probably don’t fill you with excitement, but here’s the thing: they should. A modern payments system can transform your hotel, eliminating time-consuming tasks for staff, boosting your cash flow and removing friction for guests. It’s the topic of episode four of Matt Talks, a video series in which Mews CEO, Matt Welle, discusses the most common challenges and solutions for today’s hoteliers. In this article, we’ll explain some of the key processes of modern payments, explore the benefits of modernization, and consider why embracing embedded payment solutions like Mews Payments can transform the guest experience and improve hotel operations. For the full effect, you should also watch for yourself: The Problem with Outdated Payment Processes Many hoteliers still use traditional, manual processes that involve high-risk transactions. These outdated methods – like manually entering 16-digit credit card numbers, processing paper receipts and reconciling payments by hand – are slow, inefficient and vulnerable to chargebacks and data breaches. Chargebacks, in particular, are a significant issue. When guests challenge transactions, hotels are often left without recourse, losing money and wasting valuable time trying to resolve disputes. These old-fashioned payment systems create friction for both guests and staff, making it harder to offer a smooth, seamless experience. But modern payment innovations can make a significant difference. Integrated vs Embedded Payments: What's the Difference? One of the biggest shifts in hotel payments has been the move from integrated to embedded payment solutions. Integrated payments still require human intervention, such as staff manually inputting charges or reconciling discrepancies. Embedded payments are fully automated and seamlessly integrated into every guest interaction. A great example of this evolution is Uber. The app revolutionized the way we pay for rides, not only with its live geolocation, but by embedding payments so that as soon as the trip is over, we can just get out of the car without any manual payment. Embedded payments in hotels offer a frictionless experience where guests can check in, make purchases, and check out without having to manually handle payments. It all happens in the background, thanks to secure, tokenized card data that stays on file. Mews takes this embedded payment approach and applies it to hotel operations. By embedding payments into every part of the hotel journey – whether it’s pre-authorizing a card at check-in or handling restaurant charges via a smart point-of-sale (POS) device – Mews ensures that payments are as seamless as possible. No need to chase down guests for credit card reauthorization or juggle multiple devices to process payments. Security: Tokenization and PCI Compliance When it comes to payments, security is non-negotiable. Hotels handle sensitive guest data, making them prime targets for data breaches. Many data breaches in hospitality stem from outdated payment systems that don’t offer the necessary security features, such as tokenization. Tokenization replaces sensitive card data with encrypted tokens, ensuring that no one (neither hotel staff nor cybercriminals) can access the actual credit card numbers. Mews uses this technology to eliminate the risk of data breaches. By working with tokenization vaults, Mews guarantees that all payment details are stored securely and can only be used for authorized transactions. As well as tokenization, Mews ensures that hotels comply with the latest Payment Card Industry Data Security Standards (PCI DSS), protecting both hotels and their guests from fraud and breaches. The damage a data breach can do to your brand is serious, so payment security should be top of mind when choosing technology partners. Omnichannel Payments for a Seamless Guest Experience An omnichannel payment solution means that all payment channels – whether through online booking, the front desk, or restaurant POS – work together in a unified way. That’s exactly how Mews works, ensuring that payments made at any point in the guest journey are seamlessly integrated into one system. For example, when a guest checks in and pre-authorizes their card, that card can be securely stored and used for additional charges throughout their stay. This eliminates the need for the guest to revisit the front desk to reauthorize payments. It’s a smoother experience for the guest and reduces the hotel’s risk of unpaid balances. Reducing Chargebacks and Costs Chargebacks are one of the most frustrating challenges for hoteliers. Not only do they result in lost revenue, they also take up valuable time as staff scramble to gather documentation to fight disputes. The Mews embedded payment system significantly reduces the risk of chargebacks by ensuring that all transactions are verified through secure methods like 3D Secure, which authenticates the cardholder’s identity. By modernizing your payment process with Mews, you’ll not only reduce chargebacks but also lower transaction fees. Many legacy systems rely on high-risk payment methods that come with higher fees. With Mews’ secure, verified transactions, you’ll see savings in both time and costs. Why Mews is the Future of Hotel Payments The benefits of modernizing your hotel’s payment systems are clear. By moving to an embedded, omnichannel solution like Mews Payments, you can enhance the guest experience, improve security, and reduce costs associated with chargebacks and manual processes. In a world where convenience and security are paramount, Mews helps you stay ahead of the curve and offers your guests the seamless experience they expect. So, if you’re still relying on outdated payment methods, now is the time to make the switch. Make payments become a natural part of your hotel’s operations, freeing up your staff and giving your guests a frictionless stay from check-in to check-out. Want to know more about how Mews Payments works? About Mews Mews is the leading platform for the new era of hospitality. Powering over 5,500 customers across more than 85 countries, Mews Hospitality Cloud is designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub, and Airelles Collection. Mews was named Best PMS (2024) and listed among the Best Place to Work in Hotel Tech (2021, 2022, 2024) by Hotel Tech Report, as well as World's Best Hotel PMS Provider (2023) and World's Best Independent Hotel PMS Provider (2022, 2023) by World Travel Tech Awards. Mews has raised $335 million from investors including Goldman Sachs Alternatives, Kinnevik and Revaia to transform hospitality.