Digital payments have no doubt had a positive effect. We can transact online and that gets easier and easier. Fraud is continually reduced. Companies like Stripe, Square and Shopify make it easy for small businesses to get online quickly. I was able to set up a shop on Shopify in about 30 minutes.
But with that convenience comes a challenge when you’re traveling.
Online travel agencies like Expedia, Priceline and others often take money upfront from customers by credit card. At check in, the customer is asked to provide a card for “incidentals.”
The problem is that sometimes the card gets charged for the room rate, something the customer has already paid.
The way hotels get paid by OTAs is through virtual cards. With a reservation, they also receive a virtual card to charge the wholesale rate. Hotel systems are designed to split bills. When it works correctly, the room rate is billed to the OTA’s virtual card and incidentals are billed to the card the customer provided at check in.
When it doesn’t work, the customer’s card is also charged the wholesale rate. I had this happen to me at Emeline in Charleston, S.C. I was charged an extra $386.10. It took many phone calls among hotels and with American Express to resolve this.
Unfortunately, there is little that travelers can do to avoid this. The best you can do is check your credit card bills for an extra charge and then complain. Most people at the hotel won’t know what’s you’re talking about. It is an easier conversation if you ask the hotel “did you charge me instead of the virtual card?”
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