Payment card authorizations

You can use the Payment Authorization tab to view existing authorizations or manually add authorizations. Payment card authorizations requests are made when a guest stay with a credit card settlement type is checked in, or when a payment is made using a credit card where no prior authorization exists. You can manually enter the card details (the user calls the bank or processor and gets an auth number) or use a card reader to electronically process the credit card information to a credit card processor. The card information is validated with the bank. If the card details and the amount that is specified in the Amount field are approved by the bank, an Approval Code is displayed by the system.

The application will come up with an authorization amount by determining what the anticipated payment amount will be upon guest check out. To calculate this the applications will look to the rules set up by the property in the Credit Card Authorization section of the Property Configuration screen, then it will look at the guest stay record for any transfer instructions or tax exemption instructions. The authorization amount will be calculated for a maximum of 7 days unless your hotel's install parameter PRAUTHD has a specified number of days. The only exception to this is if the guest is on a package, then the entire package amount will be authorized. The Incremental Credit Card Authorization process can be run manually or added as an additional end of day process to review the folio balances vs. total authorized amount (less any transfers, tax exemptions) and will seek additional authorization on guests if needed.

The life-cycle for a card transaction starts when the request for initial card authorization is sent. For a given card, the amount authorized initially is in the Open status for the duration of time when the Original approval is obtained and before the final settlement. An account’s balance can be compared to its total open authorizations to determine if the account have enough credit for the current charges. After a credit card settlement is posted on an account, any Open authorizations, both original or incremental authorization, are set to Used. This is true even if the amount of the payment is less than the authorized amount, for example the guest has sufficient authorization and a credit card payment is made to the folio this ends the transaction life-cycle. If the guest still has a balance on their account or is not departing today a new transaction life-cycle must begin.

The length of time an authorization is valid for is determined by the card issuer or merchant bank, not by the card type or processor. The only way authorization is reversed or returned (releasing funds) is by making a payment against the card authorized, or until the time period holding that authorization has elapsed.

The property can process card transactions with the Card Fee using the processor, when the property parameter EXTERNALCARDFEETRANSACTION is defined with valid transaction code and the credit card settlement amount is more than the sale amount. These card fees are different from the HMS card fees. The processor can return the higher amounts to HMS as the card fee on Auth, Incremental Auth, Sale and Settlement.

Card transaction types:

• Authorization Only: When the authorization only request is sent by the property, the card-issuing banks generates and returns a tracking number which is valid for that authorization only request. This tracking number is used until the guest checks-out and a payment is made using the card authorized.
• Incremental Authorization: An incremental authorization is requested when the final payment amount during check out, or the anticipated final payment for a stay over is greater than the total original authorized amount. The tracking information generated initially during the original authorization only request, must be presented to the card processing center when the incremental authorization request is performed.
• Prior-Authorized Sale : The Prior-Authorized sale records a finalized transaction. This transaction ends the card transactions' life-cycle. The prior-authorized sale transaction is carried out during the end-of-day procedures or when the guest makes a payment. Performing this transaction indicates that a final amount is known and settlement can be carried out. After the prior-authorized sale is completed, the sale details are printed on the cardholder’s billing statement. When the prior-authorized sale transaction is performed, all tracking information, industry data, authorization amounts, and the final amount must be sent to the card processing center.
• Return Transactions: The card transaction of type Return is used to generate a refund on a guest’s credit card account. After the return transaction is settled, the transaction is printed on the Cardholder’s billing statement, as a credit. Return transaction type does not require an approval from the processor.
• Sale Transaction: The sale transaction, in one step, authorizes and records the transaction for settlement. A sale transaction is used when the final amount is known and authorization is needed, as in the following scenarios:
  • Prepayment or advanced deposits before the guest arrives.
  • Delayed charges after the guest departs.
  • No-show charges. When the guest does not check-in on the day of reservation, a hotel can levy a no-show charge.
  • If the guest checks-out and no previous authorization exists, but transactions exist on the folio and a credit card used at check-out.
• You can print the receipts using the Signature Capture screen. The receipt is printed based on the report parameter specified for the Payment Authorization report. To send or print the receipt from the Signature Capture screen:
  • The property parameter SIGNATURECAPTURERECEIPT must be selected.
  • The property parameter AUTOPRINTAUTHRECEIPT must not be selected.