- Slides: 8
Single-Use Virtual Payments: Benefits and Barriers Learn why this has become a hot topic for the travel industry. Presented by: Pat Plaster - Sr. Manager, Travel Services, Providence St. Joseph Health
What is a virtual payment and how does it work? • Virtual payments are a single-use, credit card number with a fixed limit and a pre-determined date range of validity • A “master” card is issued by chosen financial institution, who then issues a block of associated single use card numbers linked to the master account. • Most commonly used to facilitate payment for hotels and meetings/events • The card issuing institution, GDS provider, and a third party implement the required technology. For corporate customers, the TMC leads implementation
• Once the reservation is finalized, payment/card number is deployed at the TMC level via the GDS to the vendor • An electronic fax is transmitted to the vendor • Vendor has ability to charge the card in a one time use for services identified in the description provided (room, tax, parking). This avoids use for incidentals. • Creating a card limit of approximately 25% higher than room rate, taxes, parking total provides margin for minor changes in cost. • Post trip, administrators can log in online and see matches between bookings and payments for reconciliation. This process can be utilized to allocate and track spend.
The good…. . • Enhances company credit card rebate program • Spend tracking (actual) and compliance • Traveler can receive a mobile copy of the virtual card if asked to present a card reflecting original form of payment upon check-in • Reservation is guaranteed • Payment is secure • Enhanced traveler experience • Avoid manual credit card authorization • Supports employment candidates and travelers without cards • Custom field data and reporting
Amount Hotel Traveler 156. 71 Hotel Traveler 1958. 1 Hotel Traveler -1065. 36 Hotel Traveler 708. 5 Hotel Traveler 1061. 16 Hotel Traveler 275. 04 Hotel Traveler Dept 1234567 1234567 GL 0 0 0
The bad and the ugly…. . • In order to optimize the advantages, get thorough training • Card transactions entered into the third party tool rather than using the GDS do not transfer completely to the reconciliation tool • Not all hotel properties accept virtual payments, requiring extra steps to deploy or use of alternate payment methods requiring manual tracking and reconciliation. • Hotels do not always charge the card promptly, particularly for meetings and events payments, requiring a void and reissue of new card. • Vendor support for hotels is lacking. Only tool offered is the introductory letter.