Hotel payment processing: 6 best payment solutions for hotels

Key takeaways

• Hotels need payment systems handling pre-authorisations, delayed capture, multi-currency processing, and post-stay charges—requirements that standard retail payment processors often can't support efficiently.

• Payment processing costs for hotels typically range from 2-3.5% per transaction, but hidden fees for international guests, chargebacks, and currency conversion can add another 1-2%, significantly impacting margins.

• Airwallex enables hotels to accept international payments in 30+ currencies with transparent FX rates, reducing cross-border payment costs by up to 70% whilst handling pre-authorisations and delayed capture natively.

A single chargeback can cost hotels £15-£100 in fees beyond the reversed transaction value. For a 50-room hotel processing £500,000 annually in card payments at 2.9%, that's £14,500 in base processing fees—before international surcharges, currency conversion, and compliance costs.

Hotel payment processing differs fundamentally from retail. You're handling pre-authorisations for incidentals, delayed captures for no-shows, post-checkout charges, multi-currency pricing, and complex reconciliation across booking channels. The wrong payment infrastructure creates friction, inflates costs, and complicates operations.

This guide explains how hotel payment processing works, challenges specific to hospitality, and the best solutions for managing everything from online bookings to checkout.

A quick comparison of the top 6 payment solutions for hotels

6 best hotel payment processing solutions

1. Airwallex

Airwallex provides global payment infrastructure designed for businesses serving international customers, offering capabilities specifically valuable for hotels with international guest volumes.

Key hotel-specific features:

• Multi-currency accounts enabling collection in 30+ currencies without conversion fees

• Local payment rail access in 200+ countries, eliminating cross-border charges

• Native pre-authorisation and delayed capture functionality

• Transparent FX rates reducing currency conversion costs by up to 70% versus traditional providers

• Integration capabilities with major PMS systems and booking platforms

Why it's included: Hotels with international guests typically lose 2-4% on foreign exchange markups and cross-border fees through traditional providers. Airwallex eliminates these costs whilst providing full hotel payment functionality.

Strengths: Significant cost savings on international payments, true multi-currency capability with local collection, transparent pricing, modern API infrastructure, zero monthly fees, purpose-built for businesses with international operations.

Considerations: Newer brand in hospitality market compared to established providers, though rapidly gaining adoption among forward-thinking hotel groups.

Pricing: No setup fees and an entry‑level plan that’s effectively £0/month when you hold or deposit at least £10k. Card processing starts from 1.30% + 20p for UK cards, with FX margins of just 0.5–1.0% above interbank, often 60–80% cheaper than typical bank FX costs on international payments.

→ Explore Airwallex for hotel payment processing

2. Stripe

Stripe offers developer-friendly payment infrastructure with API-first design.

Key features: Comprehensive API, payment method support, online checkout capabilities.

Why it's included: API-driven approach appeals to hotels building custom technology.

Strengths: Developer experience, documentation, straightforward pricing structure.

Limitations: Limited hospitality-specific features, higher international payment costs than specialised providers, fewer native PMS integrations, lacks multi-currency account functionality.

Pricing: 1.5% + 20p for UK cards, 2.9% + 20p for international cards. Costs increase significantly for non-standard payment methods.

3. Worldpay

Worldpay (FIS Global) provides enterprise payment processing with established hospitality presence.

Key features: PMS integrations, established provider history, dedicated hospitality team.

Why it's included: Long-standing presence in hospitality sector.

Strengths: Established PMS partnerships, comprehensive support infrastructure.

Limitations: Complex pricing structures, significant FX markups on international transactions (typically 3-5%), higher overall costs than modern alternatives, lengthy contract terms, slower innovation cycles.

Pricing: Custom pricing. Generally 2.5-3.5% for domestic cards with additional fees for international transactions and currency conversion.

4. Adyen

Adyen offers unified payment processing across channels with international capabilities.

Key features: Omnichannel platform, international payment method support, unified reporting.

Why it's included: Unified platform for multi-channel payment acceptance.

Strengths: True omnichannel infrastructure, transparent pricing model, strong uptime.

Limitations: Enterprise-focused with high minimum requirements, requires technical expertise for implementation, custom integration work needed for most PMS systems, less competitive on FX rates than specialized providers.

Pricing: Interchange++ model with custom rates. Transaction fees typically 0.1-0.6% plus interchange, though international payments incur additional FX and cross-border costs.

5. SumUp

SumUp provides basic payment processing with accessible entry point.

Key features: Card readers, straightforward setup, no monthly fees for basic plans.

Why it's included: Low-cost option for small-scale operations.

Strengths: No monthly commitment, simple pricing, quick setup.

Limitations: Minimal hotel-specific functionality, no pre-authorisation support, basic reporting, limited integrations, not suitable for properties with international guests or complex requirements.

Pricing: 1.69% for card transactions. Card readers from £29. Lacks capabilities for professional hotel operations.

6. Elavon

Elavon (US Bank subsidiary) offers payment solutions with hospitality focus.

Key features: Hospitality-specific solutions, PMS partnerships, multi-currency processing capabilities.

Why it's included: Mid-market positioning with hospitality understanding.

Strengths: Hospitality sector knowledge, established reliability.

Limitations: Less transparent pricing than modern providers, FX markups on international payments similar to traditional banks, longer contract commitments common, slower to adopt new payment technologies.

Pricing: Custom based on volume. Typically 2.4-3.2% for domestic transactions with additional international fees.

What is hotel payment processing?

Hotel payment processing is the infrastructure enabling accommodation providers to accept, authorise, capture, and settle guest payments throughout the booking and stay journey. Unlike standard retail transactions that complete immediately, hotel payments involve unique workflows including pre-authorisations, delayed capture, split payments across booking engines and property systems, and post-stay charges.

A typical hotel payment flow involves multiple stages: initial deposit or full payment at booking (often through OTAs or direct booking engines), pre-authorisation at check-in to secure incidentals, final charge capture at checkout including any additional services, and occasionally post-stay charges for discovered damages or forgotten minibar items.

Hotel payment systems must integrate with property management systems (PMS), point-of-sale terminals, booking engines, and channel managers whilst maintaining PCI DSS compliance for card data security.

How hotel payments work across the guest journey

Understanding payment touchpoints throughout the guest journey reveals why hotels need specialised payment infrastructure.

Payments at booking and reservation

When guests book directly or through OTAs, hotels typically collect either a deposit (often 10-50% of total cost), full pre-payment for non-refundable rates, or guaranteed reservations with payment at check-in. Direct bookings processed through the hotel's booking engine flow through the hotel's payment gateway, whilst OTA bookings may be collected by the platform and remitted to the hotel later, minus commission.

Many hotels implement flexible payment options to accommodate different guest preferences and risk tolerances.

Pre-authorisations and deposits

Pre-authorisations hold a specified amount on a guest's card at check-in without immediately capturing funds. This secures payment for potential incidentals like room service, minibar, parking, or damages whilst allowing flexibility if charges don't materialise.

Pre-authorisations typically release automatically after 7-30 days if not captured, though timing varies by card issuer. Hotels must carefully manage these holds—authorising too little risks uncovered charges, whilst excessive holds frustrate guests and tie up their available credit.

Check-in and check-out payments

At checkout, hotels capture the final bill amount, replacing or supplementing the initial pre-authorisation. This includes room charges, consumed incidentals, and any additional services. The payment system must reconcile what's already been authorised, paid as deposit, or charged separately through POS systems.

Modern hotel payment systems enable contactless checkout where pre-authorised amounts convert to final charges automatically, allowing guests to bypass the front desk entirely.

Post-stay charges and adjustments

Occasionally, hotels discover additional charges after guest departure—damaged room items, disputed minibar consumption, or pricing corrections. Post-stay charges require storing payment credentials securely (via tokenisation) and communicating clearly with guests before processing additional amounts.

Refunds also occur: cancelled reservations, overpayments, or goodwill gestures for service failures. Efficient refund processing impacts guest satisfaction and operational workload.

→ Discover how Airwallex handles complex hotel payment workflows

Common payment methods used by hotels

Hotels must support diverse payment preferences, particularly for international guests.

Credit and debit cards

Cards remain the dominant payment method in hospitality, with hotels typically accepting Visa, Mastercard, and American Express. Debit card acceptance varies by region but is increasingly expected, particularly for domestic guests. Card payments involve interchange fees (1.5-3.5% typically), PCI compliance requirements, and chargeback exposure—all significant considerations for hotel operators.

Online payments via booking engines

Direct booking engines integrated with hotel websites enable guests to pay online using cards, digital wallets, or bank transfers. These systems must connect securely to payment gateways whilst passing booking data to the PMS for seamless operations.

Understanding international payment gateways helps hotels optimise their online payment infrastructure for both domestic and international guests.

Bank transfers and account-to-account payments

Group bookings, corporate accounts, and some international guests prefer bank transfers. Whilst slower than card payments, bank transfers avoid interchange fees and suit large transactions where card limits become restrictive.

Digital wallets and alternative payment methods

Apple Pay, Google Pay, and regional digital wallets are increasingly expected by guests. Hotels targeting international markets should consider local preferences—Alipay and WeChat Pay for Chinese guests, iDEAL for Dutch travellers, or regional alternatives prevalent in their guest demographics.

Supporting diverse international payment methods improves conversion and guest satisfaction across markets.

→ See how Airwallex supports multiple payment methods

Why choosing the right payment solution matters for hotels

Payment infrastructure impacts every aspect of hotel operations, from guest satisfaction to bottom-line profitability.

Impact on guest experience

Declined payments at check-in, slow checkout processes, or confusing foreign transaction charges frustrate guests and damage reviews. Seamless payment experiences—contactless options, mobile payments, and clear billing—contribute directly to guest satisfaction scores.

Modern guests expect payment flexibility: the ability to split bills, pay with preferred methods, and receive instant digital receipts.

Chargebacks, fraud, and payment risk

Hotels face higher chargeback rates than many industries due to disputes over charges, cancellation policies, or service quality. "Friendly fraud" (legitimate transactions disputed dishonestly) impacts hospitality significantly.

Each chargeback incurs fees (typically £15-£50), administrative time to dispute, and potential card network penalties if rates exceed acceptable thresholds. Pre-authorisations, clear cancellation policies communicated at booking, and detailed checkout summaries all reduce chargeback exposure.

Operational efficiency and reconciliation

Hotels processing payments through multiple channels—direct bookings, OTAs, POS systems, booking engines—face complex reconciliation challenges. Payment solutions that integrate seamlessly with PMS systems and provide unified reporting dramatically reduce administrative burden.

Manual reconciliation of OTA payments, card transactions, cash payments, and refunds consumes significant finance team time and creates error opportunities.

Cost control and international payments

Payment processing represents a substantial operational expense. For a 100-room hotel generating £2 million in annual card revenue, the difference between 2.5% and 3.5% processing rates equals £20,000 annually.

International guest payments compound costs through foreign exchange markups (typically 2-4% above mid-market rates), cross-border fees, and dynamic currency conversion charges. Hotels with significant international business must optimise these costs aggressively.

Key challenges in hotel payment processing

Hotels face distinct payment challenges that differentiate hospitality from other verticals.

High chargeback and fraud risk

Hotels experience elevated chargeback rates due to disputes over cancellation policies, no-shows, incidental charges, or service quality. "Friendly fraud" (legitimate transactions disputed dishonestly) impacts hospitality significantly.

Strategies to reduce chargebacks include clear communication of policies at booking, detailed checkout summaries, photo documentation of damages, quick response to guest concerns before they escalate, and using pre-authorisations rather than immediate charges where appropriate.

Managing pre-authorisations and delayed capture

The gap between authorising funds at check-in and capturing final bills at checkout creates operational complexity. Pre-authorisations may expire before checkout (particularly for extended stays), amounts may be inadequate for actual charges, or guests may claim holds weren't released promptly.

Payment systems must track authorisation expiry, enable easy adjustment of held amounts, and provide clear communication channels about hold release timing.

Cross-border payments and international guests

International guests create payment complexity through foreign card acceptance fees, unfavourable foreign exchange rates (typically 2-4% markups), dynamic currency conversion options (often disadvantageous to guests), and varying payment method preferences by nationality.

Hotels serving international markets need payment solutions offering competitive FX rates, supporting regional payment methods, and handling multi-currency pricing transparently.

Manual reconciliation and fragmented systems

Payments flowing through booking engines, OTAs, POS systems, and direct channels create reconciliation nightmares. Finance teams spend hours matching payments to bookings, identifying discrepancies, and consolidating reports from multiple sources.

Integrated payment solutions that connect PMS, booking engine, and payment gateway reduce this burden dramatically whilst decreasing error rates.

→ Learn how Airwallex simplifies multi-currency reconciliation

Hotel payment processing for international guests

International travellers create specific payment considerations that domestic-focused infrastructure handles poorly.

Hotels marketing to international guests must support multi-currency pricing (allowing guests to see and pay in their home currency), local payment methods popular in target markets, competitive foreign exchange rates that don't inflate effective room rates, and clear communication about any cross-border fees.

The cost impact of poor international payment handling is substantial. A £200 room rate with a 3% FX markup and £2 cross-border fee effectively costs guests £208—making your property appear more expensive than competitors with better FX rates. For hotels, receiving payments in foreign currencies with 3-4% bank markups erodes margins significantly on international revenue.

Multi-currency accounts enabling hotels to collect, hold, and settle payments in guest currencies eliminate these markups whilst improving guest value perception. For a 50-room hotel with 40% international guests, the savings on currency conversion alone could exceed £15,000-£30,000 annually depending on FX margin reductions.

How to choose the best payment processing solution for your hotel

Selecting payment infrastructure requires evaluating both current needs and future requirements.

Questions to ask vendors:

• What are your all-in costs for domestic and international transactions?

• How do you handle pre-authorisations and delayed capture?

• Which PMS systems do you integrate with natively?

• What's your approach to PCI compliance?

• How long do chargebacks take to resolve?

• What FX rates do you offer for international payments?

Integration considerations: Evaluate how payment solutions connect to your existing property management system, booking engine, and channel manager. Seamless integrations reduce implementation time, improve reliability, and minimise ongoing maintenance requirements.

Growth and multi-property planning: Consider whether solutions scale as you add properties, enter new markets, or expand internationally. Multi-property groups benefit from centralised payment infrastructure with consolidated reporting and unified reconciliation.

When switching makes sense: Review your payment provider when processing costs exceed 3% all-in for domestic transactions, international payment fees significantly impact margins, integration with your PMS is problematic, reconciliation consumes excessive time, or guest complaints about payment issues arise regularly.

How Airwallex supports hotel payment processing

Airwallex addresses core hotel payment challenges through infrastructure designed for businesses operating across borders.

Multi-currency accounts let hotels collect payments in guest currencies, hold balances in 30+ currencies, and pay suppliers internationally—all without per-transaction conversion fees. This eliminates the 2-4% FX margins typical of traditional payment processors on international guest revenue.

For international payments, Airwallex provides access to local payment rails in 200+ countries, enabling hotels to accept payments from international guests at domestic rates rather than incurring cross-border fees. Transparent FX rates with minimal markups ensure guests see competitive pricing whilst hotels maximise revenue retention.

The platform supports hotel-specific workflows including pre-authorisations, delayed capture, and post-stay charges, whilst integrating with major PMS platforms for streamlined operations. Unified reporting across all currencies and payment channels simplifies reconciliation dramatically compared to managing multiple payment providers.

→ Discover how Airwallex reduces hotel payment costs

Conclusion

Hotel payment processing demands specialised infrastructure handling pre-authorisations, multi-currency transactions, complex reconciliation, and diverse payment methods across the guest journey. The right payment solution reduces processing costs, minimises chargebacks, improves guest experience, and streamlines operations—whilst the wrong choice inflates expenses and creates operational friction.

For hotels with international guests, foreign exchange costs and cross-border fees represent substantial hidden expenses that proper payment infrastructure largely eliminates. As hospitality becomes increasingly global and guests expect seamless payment experiences, choosing payment partners that understand hotel operations whilst offering competitive international capabilities matters more than ever.

The hotels thriving financially aren't accepting high payment processing costs as inevitable—they're actively optimising their infrastructure to reduce fees, improve guest satisfaction, and maintain margins in a competitive market.

Ready to optimise your hotel payment processing? Open an Airwallex account to access multi-currency payment capabilities, reduce international guest payment costs, and streamline hotel payment operations.

FAQs

Why do hotels need different payment processing than other businesses?

Hotels require pre-authorisation capabilities (holding funds without immediate capture), delayed capture for checkout billing, post-stay charge functionality, multi-currency processing for international guests, and complex reconciliation across booking channels—capabilities standard retail processors don't prioritise. The unique payment journey from booking through post-stay adjustments demands hospitality-specific infrastructure.

How do hotels handle payments for no-shows and late cancellations?

Hotels typically pre-authorise or charge cards at booking for guaranteed reservations, then capture funds if guests don't arrive within the cancellation window. Clear cancellation policies communicated at booking and automated payment capture reduce administrative burden whilst ensuring revenue protection. Some hotels use virtual credit cards from OTAs that enable automatic charging for no-shows.

Can hotels charge guests after check-out?

Yes, hotels can process post-stay charges for discovered damages, disputed minibar items, or billing corrections by storing tokenised payment credentials. However, clear communication with guests before charging and proper documentation are essential to avoid chargebacks. PCI-compliant tokenisation enables secure charging without storing raw card data.

How do hotels reduce chargebacks and payment disputes?

Hotels reduce chargebacks through clear communication of policies at booking, detailed itemised checkout summaries, photographic evidence for damage claims, quick response to guest complaints, using pre-authorisations rather than immediate charges, and implementing robust fraud prevention tools. Well-trained staff who address concerns proactively prevent many disputes.

How can hotels future-proof their payment infrastructure?

Future-proof payment infrastructure supports emerging payment methods (digital wallets, account-to-account), multi-currency capabilities for international expansion, API-driven integrations enabling flexibility, strong security standards (PCI DSS, tokenisation), and scalability across properties. Choosing providers investing in modern payment technology rather than maintaining legacy systems ensures long-term viability.