The traveling and hospitality industries are a rather high-risk business due to the risk they run of succumbing to fraud.
Hospitality industries run the risk of fraud because of factors like high average ticket amounts and long fulfillment time horizons compound with high average chargeback rates in order to create above average losses to fraud. But your hotel does not have to suffer loss of revenue in 2017. Lodging merchants can reduce fraud by paying closer attention to each area of a transaction. Here are a few tips on how your hotel can reduce and avoid hospitality loss.
- EMV-Enabled Point-of-Sale Systems
This technology is a priority for merchants who have not yet rolled out EMV-accepting point-of-sales terminals because they are at serious risk for a high volume of liability shift fraud losses. This is because, according to the Card Flight, 87 percent of payment cards that are presented at travel businesses contained EMV cards.
- Tokenization of Data Storage
Storing card data in your servers can add fuel to the fraud fire. The answer here is tokenization. Hotels can continue to gather guest-specific information to enhance their experience, while not storing any sensitive customer information. Tokenization creates a common token across all channels, so all guest information is kept secure.
- Notice and Address False Positives
In 2014, $9 billion was lost to actual fraud while $118 billion was lost to false positive. It is your ultimate goal that you not turn away legitimate customers and cause high levels of false positives. Instead, hotels should aim to accept more transactions and manage fraud that occurs as a result.
If you want to bring your property to the 21st century, give us a call! Renovate your property with hospitality construction services from Parkwest General Contractors. Contact us to build your business.