What do I need to open a hotel merchant account?
You need 6 items to open a hotel merchant account:
- A business bank account in the property's legal name
- An EIN and ownership details for anyone with 25% or more
- 3 to 6 months of recent processing statements, if you process today
- Your cancellation, deposit, and no-show policies as published to guests
- Your average daily rate and average length of stay
- A website or booking engine that shows the policies at checkout
How much does a hotel merchant account cost?
A hotel merchant account costs the card networks' interchange plus a processor markup, usually quoted as a percentage and a per-transaction fee. We do not charge an application fee for a quote, and every recurring fee appears on the quote before you sign. See hotel processing pricing for how interchange-plus compares with flat and tiered rates, and hotel credit card processing fees for a line-by-line breakdown.
Why do processors freeze hotel accounts?
Processors freeze hotel accounts when prepaid volume grows faster than expected. A guest can pay for a stay 6 months ahead, and the processor carries that liability until the guest checks out.
We prevent freezes in 3 ways:
- Declaring your future-delivery exposure at underwriting, so growth is expected.
- Setting a reserve, if one is needed, as a fixed amount you can plan for.
- Reviewing your volume limit every quarter as occupancy changes.
Can a new hotel get a merchant account?
Yes. A new hotel can get a merchant account without processing history by submitting a pro forma with expected rooms, average daily rate, and occupancy. New properties sometimes start with a modest reserve that is released after 6 to 12 months of clean processing.