MPS works with the hospitality industry

We ensure that every transaction is efficient, cost effective and effortless for the guests

Many merchants and customers are unaware that Lodging/Car Rental companies have different requirements for credit card processing than regular merchants. The reason is that lodging merchants like car rentals merchants take upfront AUTHORIZATIONS for an amount and then process the transaction when they leave the lodging facility or return the car.



When you book a hotel/car, they require a credit card to keep on file. They immediately will run your card and that amount will show as “Pending” on your credit card account or bank account. Normally, a credit card “hold” or authorization will expire within a couple of days.

A customer reservation with a credit card has terms and conditions; the most important is that you must cancel by a certain time or forfeit that night’s charge of the room! Unfortunately, customers get very upset about this and want to do “chargebacks” against the lodging facility. If the lodging facility does not respond within the allowed 14 days, the merchant will have that money pulled from his account and returned to the customer automatically.

But if the merchant reacts to the chargeback letter by sending the terms and agreement along with the time of the reservation and a statement that the customer did not show, the merchant will most likely retain that transaction! Car Rental companies get post transaction charges for parking tickets, toll roads and other that also get put on a credit card that was kept on file.

All in all, lodging and car rental merchants pay much higher credit card processing fees mostly because they are not aware of many of the scenarios that can occur and what to do with them when they happen! Merchant Processing Solutions Inc. works with our Hospitality Industry Merchants to make sure they are set up correctly and that all parties understand what needs to happen with each customer transaction.

We help our merchants review potential POS Software and hardware. We work with Visa/MC/Discover/Amex who created special programing only for lodging/auto-rental merchants, so that these merchants can authorize a credit card, but not “capture” the final sale until many weeks later. That’s why it’s important to work with a merchant processing company that understands your needs!

Solutions for the Hospitality Industry

The Benefits of Working With Us