How to set up automatic/scheduled payment processing for OTAs and Booking Engine

Mariia Korostashevych

Updated January 30, 2024 13:25

If you have certain OTAs (such as Booking.com or Expedia), those OTAs will send your guest's credit card numbers to our system for any reservations that were not prepaid. With this credit card data, you can configure Cloudbeds PMS to manage the deposit payment of those reservations automatically.

This functionality also applies to your reservations coming from the Cloudbeds Booking Engine (Booking Engine).

This feature requires Payment Processing add-on. If you're interested in it, contact our support team or your Cloudbeds Market Manager.

Background

Here is the process in a nutshell:

A guest books your property on a supported channel below and secures the reservation with a credit card. The channel places an initial verification on the credit card to ensure it is a valid card.
The reservation is imported into Cloudbeds PMS and includes the guest's credit card details.
Once your payment gateway connection is set up properly, our system will do one of three things based on your configuration for the channel:
- Do nothing
- Authorize the credit card for the amount of deposit, but do not collect the payment
- Process the payment for the amount of deposit (immediately or certain # of days before arrival date)

Virtual credit card (VCC) provided by OTAs (Online Travel Agencies) may have specific processing requirements. Please confirm the policy with the OTA before setting your payment processing method. Some virtual cards can only be charged one day after check-in or on the check-out day in exact amount sent by the OTA.

Examples:

Agoda Collect Cards can only be charged one day after check-in date.
Booking.com's VCC can only be charged on the Day of Arrival and it expires 365 days after check-out date. More information: Booking.com Virtual Credit Card (VCC) - Everything you need to know

How to Set Up Automatic/Scheduled Payment Processing

Step 1: Set up the Channel(s)

Before you can set the payment options for the external OTAs, you must first set up those channels within Distribution. Please see our Distribution Setup Guide if you need assistance.

Step 2: Set up your Payment Gateway

The next step is to set up your Payment Gateway, which allows you to process, verify, and accept or decline credit card transactions on behalf of the merchant through secure Internet connections. For assistance in that process, please see our Payment Processing Setup Guide.

Step 3: Configure your Payment Options

Go to Payments page.
Scroll down to Processing Methods section.
Choose one of the following three options:
- Do nothing. I will process payments at a later time: The credit card information will be saved into the application for later use. Cloudbeds will not attempt to collect the payment or verify the validity of the credit card.
- Authorize credit card for the 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 the 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 synchronization with credit card company (varies according to payment gateway).

Choosing the processing method for the first time or modifying the previous configuration will only apply to the new future reservations and not the past reservations.
The system doesn't allow you to:
- Automate more than one payment process. Example: It is not possible to set up the payment gateway to take 20% deposit at the moment of the reservation and the outstanding 80% balance to be paid 1 day prior check in.
- Have different automations per reservation source. Example: It is not possible to set up the payment gateway to take 100% deposit for some reservations made via the Cloudbeds Booking Engine and 50% for other reservations made through the same source.

SAVE.

DEMO Mountain Resort and Spa - Payment Options - Google Chrome

If you choose the option Postpone until closer to arrival date, until the payment is actually posted, the scheduled payment will not affect the guest's balance due (Amount Paid field under the balance due window).

Why? There is no guarantee that the payment will be posted - The credit card couldn't be authorized or the transaction could fail due to payment processing errors.