Hotel Credit Card Processing Pricing
Hotel credit card processing pricing has 3 layers: interchange paid to the guest's bank, assessment fees paid to the card network, and the processor's markup. Only the markup is negotiable, and we quote it as interchange-plus so you can see it on every transaction.
What makes up a hotel's processing cost?
| Layer | Who receives it | Typical range | Negotiable? |
|---|---|---|---|
| Interchange | The guest's issuing bank | About 1.5% to 2.6% plus $0.10 for most credit cards | No, set by Visa and Mastercard |
| Assessments and network fees | Visa, Mastercard, Discover, Amex | About 0.13% to 0.15% plus small per-item fees | No |
| Processor markup | Your processor | Varies widely by provider | Yes |
How do pricing models compare for hotels?
Interchange-plus is the lowest-cost model for most hotels because lodging transactions vary so much: a tapped debit card at check-in and a keyed corporate card on a phone reservation have very different interchange.
- Flat rate charges one percentage on every card, so cheap debit transactions subsidize expensive ones.
- Tiered pricing sorts transactions into qualified, mid-qualified, and non-qualified buckets that the processor defines.
- Interchange-plus passes through the network cost and adds one fixed markup you can audit.
How do hotels lower interchange?
Hotels lower interchange in 4 ways:
- Dip or tap cards at check-in instead of keying them.
- Send lodging data, such as check-in date and folio number, with every transaction.
- Capture authorizations within network time limits so they do not downgrade.
- Use 3-D Secure on direct bookings to qualify for authenticated rates and fraud liability shift.
Our guide to hotel credit card processing fees walks through a sample lodging statement, and hotel credit card processing explains the authorization flow that keeps rates low.
What do you need to quote my property?
We need 3 recent processing statements, your PMS name, and your approximate split between front-desk, online, and OTA payments. A new property can send expected rooms, average daily rate, and occupancy instead.
Hotel processing pricing FAQ
What is a good effective rate for a hotel?
A good effective rate for a hotel with mostly card-present check-ins is 2.2% to 2.6%. Properties that take most payments online or by OTA virtual card run 2.8% to 3.5%, because card-not-present interchange is higher.
Are there monthly fees?
Every recurring fee, such as a gateway fee or PCI program fee, is listed on your quote before you sign. We do not add fees that are not on the quote.
Can you beat my current rate?
Send 3 recent statements and we will show your current markup above interchange line by line. If we cannot lower it, we will say so.