Simplifying acceptance of virtual credit cards for travel sellers
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Simplifying acceptance of virtual credit cards for travel sellers Webinar 17 April 2014
description
Do you manage financial operations at a hotel, OTA, airline or any other e-commerce site that sells travel? Then don't miss this FREE webinar presented by Tnooz and WEX, a leader in VCC payments for the travel industry. In our webinar you will discover how: a VCC transaction does not require any different processes than a physical plastic card understanding trends in VCC acceptance can lead to greater acceptance and best practices experience with clients confirms security, financial, and workflow benefits for acceptance from hotel suppliers the hospitality sector is working through a key industry organization to develop a framework for facilitating VCC payments Our panelists are: Nicole Tackett, manager for global product and marketing, WEX Virtual Deena Jones, senior product manager for Travel, WEX David Sjolander, COO, Hotel Technology Next Generation (HTNG) Kevin May, editor and moderator, Tnooz Gene Quinn, CEO and producer, Tnooz
Transcript of Simplifying acceptance of virtual credit cards for travel sellers
Simplifying acceptance of virtual credit cards for travel sellers
Webinar
17 April 2014
Your hosts
Kevin May Editor & moderator
Gene Quinn CEO & producer
Webinar April 17, 2014
Simplifying Hotel Acceptance of Virtual Credit Card
Payment Solu8on
Today’s Presenters
Nicole Tacke7 – WEX Inc. Manager, Global Product & Marke4ng [email protected]
Deena Jones – WEX Inc. Senior Product Manager, Travel [email protected]
David Sjolander -‐ HTNG Chief Opera4ng Officer [email protected]
Agenda
• Introduc8ons • WEX Overview
• WEX Travel: how does it work?
• Hotel Distribu8on Channel • Hotel Processing Best Prac8ces • Hotel Acceptance • HTNG and Workgroup Overview
Poll Ques8on #1 Where are you located? 1. North America
2. EMEA
3. La8n America
4. Asia Pacific
Poll Ques8on #2 What travel business segment do you represent? 1. Hospitality supplier 2. Other supplier 3. OTA 4. TMC, corp buyer, travel agency, other intermediary
5. Technology solu8on provider or consultant
Who We Are
WEX Global Growth
How It Works
Virtual Payments
Benefits • Reduc8on in fraud and misuse
• Financial rebate incen8ve • Timely transfer of funds globally
• Automa8on of reconcilia8on • Cost and process improvement
• One-‐8me use, secure account number
• Global payment pla_orm
• Real-‐8me processing
• Transac8on specific controls
• Enhanced data quality
WEX Travel: A New Approach
IT AutomaOon Benefits • WEX pioneered single-‐use B2B virtual card payments, 13 years experience
• No upfront or ongoing fees for implementa8on and soaware
• Seamless, nimble integra8on with exis8ng systems via web service
• Updates do not require code change • Capacity to support 24/7 environments
©2013 WEX Inc. Confiden8al and proprietary.
WEX Travel: IT Innova8on
Poll Ques8on #3 What is the main obstacle keeping your organiza8on from implemen8ng a VCC payment solu8on? 1. Convincing suppliers to accept virtual credit card 2. Integra8on to back end systems 3. Shortage of IT resources for implementa8on or API dev 4. Privacy/security concerns 5. My organiza8on currently u8lizes a VCC payment solu8on
Insights into Hotel Acceptance and Best Prac8ces
Deena Jones
Senior Product Manager, Travel
Complexi8es of Hotel Distribu8on
Hotel Supplier Best Prac8ces • Pre-‐authoriza8on based on guarantee/deposit
rule • Ensure the authoriza8on code is presented with
the subsequent pos8ng of transac8on • Standard check-‐in procedure 2 folios • Check-‐out se?lement transacted in property
currency
• Par8al payments can be transacted to the sum of the total authorized amount
• Par8al or full refund can be transacted against VCC, however you cannot charge it again
Case Study – Decline Authoriza8ons • Trend Iden8fica8on of decline authoriza8on
across a hotel chain • Analysis revealed that PMS* scheduled job
was a?emp8ng authoriza8on of VCC from 8me of crea8on to check-‐in for all reserva8ons for all integrated OTAs
• SoluOon PMS* configura8on changes made at all proper8es so proper reserva8on/gtd type is associated to the reserva8ons
• ResoluOon Impact for OTAs and travel companies is reduc8on of false/posi8ve alerts on decline authoriza8ons. For the hotel suppliers is reduc8on decline authoriza8on a?empts *Property Management System
Poll Ques8on #4 What is the main challenge in hotel acceptance of VCC payment solu8on? 1. Merchant fee associated with processing 2. Educa8on in understanding the benefits of
acceptance, which offset merchant fee 3. No standard workflow processes on hotel side for
processing
Supplier Acceptance Benefits
* Market research conducted by Ardent Partners in June 2013
*• Faster receipt of payments • Reduc8on of payroll expense • Improved payment data • Guaranteed payment • Controls on card reduce hotel losses • No addi8onal processes
• No addi8onal soaware/hardware • Security
WEX’s Ini8a8ve to Drive Efficiencies
• Authoriza8on and transac8on data trend analysis • Leverage our travel companies rela8onships with the hotel
chains to work through the processing challenges • WEX team collabora8on of SME’s in Payments, OTA
opera8ons and hotel systems and opera8ons enables a complete end-‐to-‐end understanding of the payment workflow in a reserva8on network
• Ac8ve in hospitality technology organiza8ons to con8nue to be an innova8ve payment solu8on in the travel ver8cal
HTN
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Virtual Credit Cards
Workgroup Incubation
DAVID SJOLANDER CHIEF OPERATING OFFICER HOTEL TECHNOLOGY NEXT GENERATION WWW.HTNG.ORG
What is HTNG?
• Non-‐Profit Trade Associa8on • Funded by 4,000+ members to
– Solve common industry technology problems – Promote interoperability of systems – Encourage development of new meaningful technologies
• Board consists of senior IT execu8ves from 17 global hotel chains
• Membership represents over 33,000 hotels and 180 technology suppliers in 81 countries
Current Ac8ve HTNG Workgroups
• Above Property Systems
• Event No8fica8on • Event RFP Submission • Intelligent Guestroom • Point of Sale
• Product Distribu8on • Fiber to the Guestroom • Mobile Device Iden8fica8on and Authen8ca8on
• Entertainment Device Control
HTNG Released Payment Specifica8ons
• Data Proxy (tokeniza8on) • Payment Processing • Hosted Payment Capture Systems • Secure Payments Framework
Hotel Challenges with VCC
• Determining from the number that the card is virtual rather than tradi8onal
• Understanding condi8ons for payment: – Can/should the card be pre-‐authorized? – Is it for a specific amount or a range? – Is there a specific date range for processing?
• Dealing with faxes and emails that contain the full 16-‐digit credit card number
HTNG VCC Workgroup
There is neither a way for hotels to dis8nguish virtual credit cards (and other card not-‐present situa8ons) from tradi8onal ones, nor a systema8c way to communicate the business rules, payment instruc8ons, and terms and condi8ons of using them. This results in inefficiencies, security and PCI compliance issues, declined payments, poor customer check-‐in experience and addi8onal
back office processing.
Business Problem Statement
HTNG Workgroup Process
ProspecOve IncubaOon Chartered and AcOve Maintenance ReOred
VCC Workgroup Status
• Currently in incuba8on stage • 1st Mee8ng held on Friday, 11 April 2014
– 13 companies par8cipated – Began to write charter
Par8cipants will likely include:
• Hotel companies • Virtual Credit Card issuers • Credit card associa8ons (Visa and MC) • Core technology suppliers (CRS/PMS) • Distribu8on partners (GDS, TMC, OTA) • Credit card processing middle-‐ware suppliers
Next Steps
• Chartering call #2 -‐ Tuesday, April 22nd at noon EDT • Send an email to [email protected] if you are interested
in par8cipa8ng – HTNG membership not required un8l charter is approved
Ques8ons?
We see corporate payments differently.
Thank You!
Nicole Tacke7 Manager, Global Product & Marke4ng [email protected]
Deena Jones Senior Product Manager, Travel [email protected]
David Sjolander Chief Opera4ng Officer [email protected]
Q & A
Thank you!
Send your questions and comments to [email protected]
Replay and presentation of webinar will be available on www.tnooz.com
