This article will walk you through how payment processing works and how to set it up.
What is payment processing and how do I use it?
Payment processing automates payment transactions between you and the guest. It allows you to process, verify, and accept or decline credit card transactions on behalf of the merchant through secure Internet connections. There are many existing payment processors (also known as payment gateways) that connect directly to your bank account and transfer funds directly into it.
In order to verify the legitimacy of your guests' credit cards and collect the payments immediately through Cloudbeds, you must be signed up with one of the payment processing companies we are currently integrated with. Click here for our full list.
How do I start using payment processing?
To use payment processing, first navigate to your Payment Options page by clicking on the settings icon. On the Credit Card tab, you should see a section to activate or deactivate payment processing.
If you do not see this section, please contact our support team to enable it.
Activate payment processing
Click on the switcher to activate payment processing. You will see a dropdown with a list of payment gateways underneath, along with authentication fields to the right of it. Select the payment gateway that you want to use.
The required authentication fields are different for each payment gateway. This information can be found within the account setting of your gateway and by contacting your payment gateway's support team.
Select default actions
After you enter the required information and the account is verified, you will see a list of radio buttons to select the default option for direct reservations (mybooking reservations).
If you are using myallocator to connect to either Booking.com or Expedia, you will likewise see an option to select a default option for those channels. Currently, Booking.com and Expedia are the only channels that pass the credit card information.
The following choices are available for each:
- Do nothing. I will process payments at a later time
- Selecting this option capture the credit card information for you to access later. It does not do anything to the credit card besides capture the information and store it.
- Authorize credit card for amount of deposit, but do not collect the payment
- When this is selected, Cloudbeds sends the transaction to your processor for authorization. If approved, the transaction is placed in your Unsettled Transactions with a status of Authorized/Pending Capture.
- The authorization places the funds on hold with the guest's bank. When the transaction is captured, the funds transfer process will occur.
- This can be useful in situations where the reservation is booked for a later date. You can authorize the transaction to ensure funds availability, then capture the transaction to obtain the funds upon arrival.
- Process the payment for amount of deposit
- With this transaction type, the process is completely automatic. The transaction is submitted to your processor for authorization and, if approved, is placed in your Unsettled Transactions with the status Captured Pending Settlement. The transaction will settle at your next batch.
When creating a direct reservation, you can select what you would like to do for each reservation. You will be given all three options when creating a reservation directly.
- Create Reservation
- Create and Process Payment
- Save and Authorize Card
Viewing credit card / credit card activity
After the reservation has been completed, you can navigate to the Payments section on your reservation and click on the "Credit Card" tab, on which you will be able to see a list of all the credit cards on file, and how much that card has been authorized or charged.
Authorized credit cards
If the credit card has already been authorized, you will see three button next to it:
- Authorizing a credit card that already has an authorization will void the previous authorization, and create a new one for the new amount.
- Will capture the funds of the existing authorization. A field will appear to enter the amount, which can be less than or equal to the authorization amount.
- If a smaller amount is entered, the remainder of the amount will be voided. If a larger amount is entered, the transaction will fail.
- Will void the existing authorization and release the hold.
Authorize an unauthorized credit card
To authorize a credit card that has not yet been authorized:
- Click on "View Credit Cards and Authorizations".
- Click Add Card on the left side
- Enter all the card payment details.
- Authorize the credit card and enter the amount to authorize it for.