Hotel Payment Processing: A Comprehensive Guide

Payment processing can make or break a guest’s experience—when a guest checks into a hotel, payment problems are the last thing they want to deal with. The right system doesn’t just handle transactions; it improves convenience, builds trust, and boosts bookings. 

This guide explains hotel payment processing, explores the most reliable and newest hotel payment options, covers best practices for keeping guest data safe, and shows how working with a partner like Engine can simplify operations and increase revenue.

What’s hotel payment processing?

Hotel payment processing refers to how a hotel accepts, authorizes, and settles guest payments. This includes everything from swiping a credit card at check-in to completing online payments during booking. It also includes backend tools that track transactions and link them to guest records in the property management system (PMS).

A smart, seamless hotel payment solution does more than keep operations running smoothly—it helps hoteliers stand out regardless of how luxurious their properties are. The right hotel payment methods reduce wait times and boost satisfaction. When business travelers can make payments using their preferred mobile wallets, bank transfers, or even digital currencies, they’re more likely to return.

The best hotel payment processing options

New technologies are reshaping how guests pay for their stay. Here are five of the latest and most effective payment options available to hotels today.

Credit card terminals 

Modern credit card terminals accept chip cards, contactless mobile payments, and digital wallets like Apple Pay and Google Pay. These terminals often connect directly to your PMS, which helps reduce manual entry and speeds up the check-in/checkout process.

Integrated property management systems 

A PMS with built-in payment gateway functions can automatically link guest payments to reservations. For example, cloud-based PMS platforms allow guests to pay online, via email links, or at the front desk, all from a single dashboard.

Point-of-sale systems 

Point-of-sale (POS) systems let hotels accept payments for on-site purchases, like restaurant meals or spa treatments. When integrated with your PMS, they automatically add charges to the guest’s room bill, creating a smoother checkout experience and better tracking for hotel staff.

Online payment gateways

An online payment gateway allows guests to pay securely during the reservation. Think Stripe, PayPal, or Adyen—all gateways that support multiple payment methods, including credit and debit cards, and often offer built-in fraud protection.

Mobile card readers

Mobile card readers like Square or SumUp allow staff to accept payments from anywhere on the property, even poolside. This option is ideal for boutique hotels or resorts offering flexible check-in options or outdoor services. 

Common options for hotel payment processing

While new solutions are on the rise, many hotels still rely on these tried-and-true payment methods.

Cash

Cash remains a preferred payment option for some guests, though it’s used far less often than it used to be. Accepting cash requires strict in-house controls, but your hotel won’t have the added expense of transaction fees.

Credit and debit cards 

Credit and debit cards are still the most common payment methods in hospitality. Visa, Mastercard, and American Express are widely accepted examples. Encrypted credit card processing tools protect both the guest and the hotel and simplify transactions like refunds for cancellations.

Direct bank transfers

Guests who prefer not to use a card might opt for bank transfers, especially for extended stays or group bookings. Transfers are slower to process, but they’re reliable and secure when handled through verified payment gateways.

Digital currencies

Some hotels are starting to accept cryptocurrency, like Bitcoin, especially in tech-forward cities. This option caters to a niche but growing group of travelers.

Mobile payment apps 

Apps like Apple Pay, Google Pay, and Samsung Pay are increasing in popularity. They offer fast, contactless transactions and are especially popular with younger guests. 

6 best practices for secure hotel payment processing 

With so many transactions flowing through your hotel payment system, keeping guest payment data safe should be a top priority—poor data security can lead to breaches that cause reputation issues and poor ratings. 

Here are six ways to strengthen security.

1. Ensure compliance with PCI DSS standards 

Following Payment Card Industry Data Security Standards (PCI DSS) helps protect guest data and prevents costly breaches. This includes using encrypted payment terminals, regularly updating software, and limiting access to payment data.

2. Eliminate PFD authorization forms

PFD forms for credit card authorizations are outdated and risky. You can replace them with secure, tokenized online forms or portals. Many hotels have already made this switch to reduce fraud and keep transactions compliant.

3. Have a data security policy 

A clear data security policy keeps staff aligned and accountable. It should outline how guest data is stored, how it can be accessed, and how to handle breaches or suspicious activity.

4. Make regular revisions to data security processes

Schedule reviews of your hotel payment system every six to 12 months to spot weak points, update procedures, and train staff on the latest threats and tools. 

5. Have a data security incident response plan 

If a breach happens, having a plan in place minimizes damage. Your incident response plan should include how to notify affected guests, contact your payment processor, and restore secure operations.

6. Conduct risk assessments 

Regular risk assessments identify vulnerabilities before they become problems. Consider working with an external cybersecurity consultant to review your systems and offer recommendations. 

Increase your hotel bookings with Engine

Managing hotel credit card processing, keeping up with new payment methods, and protecting guest data can be overwhelming. That’s where Engine comes in. As a trusted partner, we simplify bookings and payment management so you can focus on what matters most—your guests.

Engine’s platform integrates with secure payment gateways, supports multiple payment methods, and connects your property to a network of high-intent business travelers. It’s a smarter way to increase visibility, boost revenue, and reduce operational friction.

Join Partner Hub for free today, and get $100 in ad credit when you run your first marketing campaign.

FAQs

What’s the difference between a hotel payment system and a payment gateway?

A hotel payment system is the full setup used to handle guest transactions, including tools like the PMS and POS. A payment gateway is just the technology that authorizes and processes credit card payments online or in person.

Are mobile wallets safe to use for hotel payments?

Yes, digital wallets like Apple Pay and Google Pay use encrypted data and tokenization, which makes them one of the safest hotel payment methods available today.

How can hotels handle international guest payments more easily?

Using payment processors that support multi-currency transactions and accept global cards and bank transfers makes the process easier and reduces friction for international travelers.

Can hotels let guests pay later instead of upfront?

Yes, many hotels give guests the option to pay later at checkout. Some even offer third-party financing options or partner with OTAs that support delayed payment.