Taking payment - At check in or check out?

 There was an Inn the news on this forum about someone running out on their bill at a Bnb and it was a FELONY in the state it ocurred, Virginia.  Very interesting.  The police caught up with them and hauled them to jail.

This one comes up a lot and you'll hear good opinions on both sides!

We take payment at check-in for a few reasons...

• our cc machine is in the dining room, too much noise during breakfast;
• MOST of our guests leave during the breakfast hour;
• we feel more comfortable knowing the card is good for whatever reason;
• we had ONE guest in 5 years leave without paying where the card was bad (we hadn't done the check-in because they were late arrivers and they were also early leavers);
• it's easier to take money from people you don't know!
• due to the late arriver/early leaver scenario, we run the card at 9 PM if the guest has not yet arrived. If the card is good, they get the keys left for them; if not, they have to ring the bell to get in.

We do it both ways, but usually at check-out.  Most folks are adding on a mug, coaster, etc. and they won't know about that stuff at check-in.  It helps that there are two of us, so one can be finishing breakfast while the other is dealing with the check-outs.

Keep in mind that in order to get chargeback protection, you need to be using a lodging certified credit card gateway, and take payment at check-out.  You pre-auth at check-in to show you got a swiped card on the check-in date, then you charge on check-out to send data on the length of stay.  This gets you the best rate and the best chargeback protection.

If you are not on a lodging gateway then it doesn't really matter as your date information doesn't pass through anyway and you are pretty much on your own for chargeback protection.

OK, I smiled when I saw the title of the thread... we've talked about this one before!  And in the past at least, we've had people feel strongly about doing it one way or the other.  I read everyone's opinion and decided to do it on check-in, which has been working well for me.  I only had one lady who was surprised about it... but as others have said, what hotel do you go to that doesn't take a cc when you arrive?

That said, I'm not that stringent on it... for starters, we take a one night deposit, up front, when they make a reservation.  So, if they're only here for one night they're already paid and all they do when they arrive is sign the deposit slip.  This covers a LOT of our reservations!

For the multi-night stays, I generally run the cc upon arrival, but there's some flexibility about it.  If I have several arrive at once (rare, but it does happen) then I might say I'll run it later, or in the morning.  Or if they seem to be in a hurry (to get to the reception or reunion or campus), same deal.  But the latest I run it is the next morning, not when they check out.

Then, when check out comes we wave goodbye and off they go.

=)
Kk.

Unless the guest offers to complete the financial end of things earlier in their stay, we ask on their last morning if they'd like me to use the same card they made the reservation with. Some folks want to pay with cash, or some other card they prefer for miles, etc. so we like the flexibility that affords for folks.

With really long range bookings, those folks are so completely appreciative that they don't have to pay interest on something they aren't "consuming"  until six or seven months later, that they end being some of our best repeat guests. They also end up being our least cancelled bookings.

We get virtually no walk-ins, so having a swiper just isn't practical for us.

We use an online processor and run a pre-auth right after getting off the phone or receiving the online request. We have a seperate computer for doing this not in a public area and the service passed its PCI_DSS security with flying colors, so we're pretty comfortable with its security.

The fees are already what our regular research shows are very competitive and the absence of the costs or lease on a swiper and other supplies drives the cost down further.

The pre-auth doesn't count as a charge so there are no fees to us involved and it gives us total peace of mind for the months, weeks, days, whatever, leading up to a guest's arrival.

We usually are satisfied with the pre-auth on its own, but will run the deposit if we caught any funny vibes from the guest on the phone or emails.

Almost nobody wants to send a check for the deposit, so we set up our accounting to run everything on checkout.

A big tipoff for us to do the deposit is if someone asks "What is the last day I can cancel without any fees?"

Those are probably the same type folks who make four different dinner reservations then only honor the one that most appealed to them on the drive to the restaurant.

Most folks when we offer to go over the cancellation policy with them will reply with "Are you kidding, I've been looking forward to this vacation for months and will not be cancelling"

We take one night deposit at time of reservation and the balance upon checkout.  Often people just cruise and say to use the same card.....six years and never a problem.  I use Cellcharge.   Cheap and easy...can process by phone or online with no equipment or associated costs....never a chargeback.

I run it at checkout because I always hope for cash or a check (spelled no cc fees). There have been several times the guest has asked if they could use a card different from the one they gave with the rez. I tell them I do not care as long as it is VS or MC and valid. If it is a debit card I encourage a check instead.

I swipe the card do all the room number, days etc and get the pre-auth and then I do a checkout. So far no problems. Also there is the gift shop sniffing the last morning - I hope for a lot of interest in it.... Sometimes there is!

I guess everyone gets different information, but one way to look at it is this - if it didn't matter whether you were setup on the right industry code, then why would they have bothered to create a lodging gateway in the first place? 

I'd ask for any advice like this to be put in writing - as a lot of what I'm reading hear is contrary to what we've heard directly from Visa, Intuit, Tom W, and numerous other processors.  Ultimately, it makes a lot of sense to follow whatever the rules might be for your specific industry - getting blindsided by a credit card issue is the last thing we want for our customers.

Using the lodging functionality as we do - swiping the card to authorize it a check-in, charging the card at check-out - does NOT preclude adding a gift shop item at checkout if the guest wishes.  They say I'd like to buy a mug before I leave, I say that's fine, would you like to pay cash or add that to your room charge, and off we go.  You have an opportunity at check-out to change the total and then have the receipt signed for the new amount.  If you want to do the hard sell, there is the chance when taking the key at checkout to ask if the guest would like to add any items from the gift shop before you put the charge through.

Moving to a lodging program rather than a POS purchase program saved us a lot of processing fees with our old processor - switching to Tom's company, Payment Transaction Solutions, saved us even more.

I don't take deposits. I charge at check out. I don't use a lodging cc program. I sometimes charge for a cancellation inside my 7 day time period depending on their reason/excuse and my frame of mind at the time. I have never had a chargeback or dispute over a charge.

Someone in the credit card industry told me that if I had a signed confirmation I would never loose in a dispute, so for our busiest time of year - two weeks or so in October during our Balloon Fiesta, I require my guests to sign and return their confirmation to complete the booking. 9 years - so far - so good.

I love this question, it brings up so much conversation every time! 

We are always wanting to do things the best way we can from the innkeepers standpoint and the guest, and this is one topic that is so evenly divided and the reasonings make total sense. 

If it is a walk in or call from the road we charge at check in (which is rare), if it is a reservation in advance always at check out when they are fat and happy.  This way I am assured they don't walk off with our keys, and it is one of the more personal parts of staying here, the "wish them well" segment of their stay.  We interact quite a bit with the guests.

 We collect at check out. But again, only have two rooms right now. We are with Tom. We don't swipe the card at check in though. I'm wondering if our system would charge less if we did that??

I'll have to check.

Riki

We also do a pre auth when the reservation is made. We have discovered that a pre- auth is only good for up to 30 days max. This requires us to run re-auths every 30 days to keep them valid. This is generally not a problem with credit cards (unless they are close to maxed out) because it approves against the customers available credit line. Debit cards are a problem since there is no credit line associated with them. They only have what the customer has in their bank account. Pre-auths on Debit cards have been problematic for us as they hold the $ to make it inaccessible to the customer. Many find this extremely inconvenient. I prefer to not take debit cards for reservations for this reason. They can use them for payment, however.

We always took full payment up front.  That way is was done and over with and we didn't have to worry at check out. No one complained ever.  I know others do it differently...it is whatever works best for you in your situation. 
Of course there was the occasional exception...check ins at midnight...or repeat guests who we knew would be paying when they left or we could just charge them.

I take payment in full via visa, MC, credit card over the phone.  Most people I have been renting to prefer to pay the entire amount in full.  Few have paid one half at time of reservation over the phone and the other half when they arrive.  This is working well!

I take a one night deposit at the time of checkin, balance to be paid at checkout.  Most often, during the goodbyes, the guest just says to "leave the balance on the card"!

any of you take driver license info or photo copy.....info for the car they are driving

a while back this was becoming more the norm.

I always take a copy of their drivers license with the explanation that it cuts down on theft. No one has refused and we have no theft.

I take full payment with registration.  Sometimes I take a reservation from someone in Europe or Africa who don't have credit cards so I take the chance and make full payment when they arrive. So far no problems with this.

This is the deal - make your life difficult just for one bad apple?  Put little signs up and treat every guest like an ignoramous because of one idiot?  We do what we have to do, but we really have to think of the majority of guests.

The other effect of little signs is the "wet paint - don't touch" theory, you are asking for it by even bringing the suggestion to their view.

I am speaking generally of all that we do, taking a driver's license and car plate # is patooey.  The majority of BnB guests are super, no issues ever. We speak of the bad ones here as it is something to share, something to get advice on.  Really, we don't have terrible guests all the time.

This morning I was left a beautiful note in the room by a little 85 year old widow who told me this was her first time in a BnB and she loved every detail.  The table was full and she was served first, she just lapped it all up.  We don't often share the really special guest stories - whether it is due to their intimacy or just don't want to sound like bragging, but we really do get some special guests.

Joe

I'm not implying anything....

I know what this forum is about.....I belong to an industry forum just like this. Have for some years.....We call them "War Stories"....We do the same thing.....work together to providing solutions to a posters problem/s

Personaly......I am not put off by some the less than peachy stories. I have them to....The good folks far out number the bad.

I have no misconception dealing with the public.....I prefer to work the angles and be prepared.....Damage and theft is nothing new, certainly something I am concerned with. I know how to deal with it in my business....as a B&B...I have no clue other than the obvious.....or what is obvious to me.....and I would be wrong....what I did find out in this thread is that there is recourse and much more finesse than I would have expected.

To me it's all cut and dry. Black and white.....no gray area.........someone broke/damaged something, they are responsible.....Something missing/stolen, they are responsible......and accountable.

As far as the driver / auto info......it's nothing new....it's standard check in at most all lodging establishments......it may not be standard where it concerns a B&B.....fine.

As mentioned above.......having a photo copy of the driver license....if that is going to deter theft....that's a win, win situation......if that would also parlay towards the issue of damages.....good.

Any business has an investment and then the ongoing operation. The idea with any business is profits.....

Now......from an outsider prespective regarding check in and check out....I'd prefer that most of what is needed to be done during the check in......so that upon departure day......hand over the room keys, thank the establishment for their hospitality, say good bye and be on my way