Credit Card Guarantee & how to charge no-shows

“Credit card guarantee” is the process where the hotel / resort takes the guest credit card details at the time a reservation is made, but no charge is made to the card so long as the guest checks in to the hotel as planned or cancel it by the deadline.  Credit card guarantee is a standard process for most bookings received from Travel Agent systems (GDS) and some Online Travel Agent booking sources (OTAs) following credit card compliance rules.  It's important to note that with this guarantee the CCV number should not be collected; this is not allowed by the credit card providers compliance rules.   Credit card user manuals all clearly explain how to handle No shows.   See page 4 of a recent Visa Card Hotel User manual by downloading it here.

To minimize problems with credit card details, we recommend the following:

1. The no show fee should be charged the next day.  Supporting documentation should include a letter explaining why the no-show fee applies together with a copy of the reservation.

2.  The credit card used must be under the same name as on the reservation.

3. The guest must be warned during the booking process and accept the cancellation / no-show conditions.  

The guest must be warned during the booking process that if they fail to check in on the date booked their card will be charged the no-show fee;  the guest must accept the cancellation / no-show conditions.  

If a guest fails to cancel a reservation or claim the room, you submit the credit card sales draft for one night's accommodation, plus any applicable tax to your bank. Include a copy of the reservation together with copy of the 'guarantee' terms and conditions.  Simply write 'No Show' on the signature panel of the sales draft.

Best practice when you receive a reservation guaranteed against a CC is seek a pre-approval code from the credit card company for the cancellation fee.