Online Methods Of Payment: Credit Cards

People who like to stay at inns and bed and breakfasts find it very useful to be able to use credit cards as an online payment method. In order to accept credit card payments, inns and B&Bs typically use a credit card processing provider.

How To Accept Credit Card Payments For Inns And B&Bs

With the acceptance of credit cards, InnPayment provides you and your guests with a convenient method of payment. Accepting credit card payments frees you from the hassle of paper checks. We have years of experience offering customizable, scalable, and flexible payment methods, including the ability to accept credit card payments. Being able to accept online credit card payments with no fuss, gives you the time you need to focus on running your business.

Online Methods of Payment Step-by-Step

When a credit card is used as the method of payment for inns and B&Bs, charges are ordinarily processed in a couple of seconds. However, a good deal happens behind the scenes:

Step 1: Guest Initiates Online Payment Method

The guest chooses to pay for a stay at an inn or bed and breakfast using the InnPayment website, a payment app or other payment channel. After selecting credit card as the method of payment, the guest provides information such as name, credit card information and address, and submits payment. The backend process is initiated.

Step 2: The Payment Gateway & Merchant Account

The InnPayment payment gateway, which is the frontend and interface of online payment processing, forwards the transaction details (address, credit card number, Card Verification Value (CVV) security code, amount) to its merchant acquirer, also known as the payment processor.

Step 3: Payment Processor & Credit Card Networks (A)

The payment processor (merchant acquirer) validates payment details by routing them through the credit card networks (Visa, MasterCard, American Express). The networks then send them to the card’s issuing bank for verification.

In the event the inn or B&B guest wishes to use Discover Card or Diners Club, which issue cards directly to consumers and use a three-party scheme of a closed loop system, the payment processor sends the payment back to the acquiring bank of the merchant for validation due to the fact that it’s the same as the card-issuing bank of the guest. Transactions such as these are processed through the Discover payment network and are sent to Discover Bank for verification.

Step 4: Credit Card Issuing Bank

The guest’s card-issuing bank approves or denies the payment transaction for the inn or bed and breakfast charges according to the card status — active, stolen, or within credit limit. At this point, the bank relays the results to the credit card networks. If payment is approved, the card issuing bank charges the guest and transfers the funds to the credit card networks minus the interchange fees to cover the assumed credit risk and rewards given to the customer for using the card as the method of payment.

Step 5: Payment Processor & Credit Card Networks (B)

The credit card networks let the payment processor know whether the transaction was approved or denied and transfers the funds minus a fee. If the guest is paying for inn or bed and breakfast charges with a Discover Card or Diners Club that uses a closed loop system, Discover Bank validates and relays the payment approved/denied status via its own Network straight to the payment processor. The payment processor then informs the InnPayment payment gateway about transaction approval/denial, and if approved, sends the funds less merchant acquirer service charges.

Step 6: Payment Gateway & Merchant Account (B)

The InnPayment payment gateway updates the inn or bed and breakfast guest about whether the transaction was approved or denied via the online payment interface. InnPayment then sends funds for approved payments less fees. If the method of payment is not accepted, InnPayment’s payment gateway relays the information to the site or app and payment processing is stopped.

Step 7: Payment

Now the money must be transferred from the merchant account to the inn or bed and breakfast’s bank account. Because the inn or B&B is signed up with an InnPayment sub-merchant account, the payment gateway places the net payment into the partner’s bank account. Upon completion of payment processing, a confirmation screen displays that payment was successful and a receipt is e-mailed to the guest.

Why Use InnPayment to Accept Credit Card Payments

In the eyes of InnPayment, you’re a valued partner rather than a customer. We believe in developing a relationship with you that’s to our mutual benefit. We enjoy knowing that you benefit from our extensive industry expertise leveraging online payment methods for inns or B&Bs.

InnPayment partners with a wide range of companies and takes pride in helping them navigate the challenges of how to accept credit card payments. No matter the size of your inn or bed and breakfast, when you work with InnPayment, you’ll benefit from dedicated customized service and unmatched industry experience.