How do motels keep processing costs low?
Motels keep processing costs low by dipping or tapping every card instead of keying it. Card-present lodging transactions qualify for lower interchange than keyed or online payments, and interchange-plus pricing passes that difference straight to you. See hotel credit card processing fees for the numbers.
How much should a motel hold for incidentals?
A motel should hold $50 to $100 per night for incidentals, or a flat $100 to $200 per stay, and disclose the amount at check-in. Debit card holds tie up a guest's cash for up to 7 days after release, so many motels hold a smaller amount on debit cards. Our guide to hotel credit card holds explains release times.
Should a motel accept cash and debit cards?
Yes. Motels should accept cash and debit cards because economy travelers use both more than other lodging guests. Cash guests should leave a cash incidental deposit, and debit guests should see the hold amount before the card is authorized. Our guide to hotel payment methods covers prepaid cards and wallets.