25 Apr
Payments are a vital part of the travel industry, forming the foundation of every booking and guest experience. As technology advances and customer expectations grow, the methods used to manage, track, and reconcile these payments are evolving rapidly. From manual processes and traditional credit cards to automated platforms and virtual payment solutions, the industry is undergoing a significant shift toward more secure, efficient, and transparent financial operations.
Virtual credit cards (VCCs) are becoming essential for managing supplier payments efficiently. Travel agents and OTAs (Online Travel Agencies) often use Virtual Credit Cards to pay hotels on behalf of guests. For each confirmed booking, a unique, single use VCC is generated and sent to the hotel with specific charge instructions. This method enhances payment security, minimises fraud risk, and ensures the hotel receives payment without needing the guest’s personal card details.
BUT as useful VCCs are it sometimes creates problems. After re-verifying hotel bookings globally, rePUSHTI has identified several recurring issues related to Virtual Credit Cards (VCCs). These challenges can disrupt payment processing and impact the guest experience if not addressed in advance. View more about payment failure scenarios.
VCC Challenges Hotels Can’t Ignore
Invalid VCC Attached – The virtual credit card linked to the booking is sometimes not recognised or fails system validation. This prevents the hotel from processing payment successfully.
Incorrect VCC Details – The card details such as number, expiry date, or CVV are most of the time incorrect or incomplete. This leads to failed transactions and delayed check-ins.
Expired VCC– The VCC has already expired by the time the hotel attempts to charge it. This results in lost payment opportunities and manual reprocessing. This is a rare scenario where the VCC expires on the guest’s check-out date, but the hotel intends to charge it after the guest has departed.
VCC Authorisation or Transaction Failure – Sometimes, a virtual credit card is declined either during the initial authorisation or at the time of charging. This can happen due to card limits, restrictions, insufficient funds, or bank-level issues. In both cases, the hotel is unable to process the payment, leading to operational delays and requiring quick coordination with the OTA or payment provider to resolve the issue.
Incorrect VCC Number Linked – The VCC number does not match the correct booking in the system. This mismatch complicates payment tracking and reconciliation.
Unclear VCC Charging Instructions – Hotels often receive no clear guidance on when the card should be charged. Misunderstanding timing can lead to rejected payments or policy violations.
While Virtual Credit Cards (VCCs) are widely used in the travel industry, they can present issues such as invalid details, authorisation failures, and unclear charge instructions. rePUSHTI helps travel agencies overcome these challenges by automatically verifying booking and payment details ahead of guest arrival.
By identifying VCC problems upfront, rePUSHTI guarantees efficient payments without disrupting the guest experience.
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