Hotel payment terminal guide for small hotels

What is a hotel payment terminal?

A hotel payment terminal is a device or piece of software used by hotel staff to process guest payments securely and efficiently at check-in, check-out or during their stay.

Also called a hotel POS terminal or a hotel card payment machine, these solutions can either form a distinct piece of hardware or can be integrated into devices like smartphones, tablets and desktops.

The best hospitality payment terminals also integrate with your property management system to streamline the billing process and reduce human error.

In this guide, we’ll take a closer look at hotel payment terminals to understand why your property might need one, what they’re capable of, and how to implement the best payment option.

Why do small hotels need a hotel payment terminal?

A hotel payment terminal allows small, independent hoteliers to securely accept payments and allows guests to pay however they want. An integrated payment terminal that connects with your PMS can automate a lot of financial admin, to reduce both the time you spend handling transactions, and the opportunity for errors.

It allows a small hotel to meet the expectations of modern guests, who are increasingly looking to use card and contactless payment methods. A terminal also speeds up the check-in/check-out processes, as charges can be processed and finalised instantly.

Hotel payment terminals offer added protection through a range of security features. And for small properties that lack a front desk, hotel mobile payment terminals make it possible to process payments anywhere on the property.

Key takeaways:

• Modern guests expect fast, secure, digital payment options.
• Terminals reduce financial admin, errors and check-in delays to enhance operations.
• Security and trust is boosted to help prevent fraud and ensure regulatory compliance.

What payment methods do hotel POS terminals accept?

Important payment method considerations for accommodation providers include:

• 72% of global hotel payments are made using credit or debit cards at POS terminals.
• In 2024, 65% of hospitality businesses prioritised contactless (tap‑to‑pay) methods
• One in six guests now pays online using their digital wallet
• More than half of hoteliers rely on third-party payment gateways

A payment terminal or POS system for hotels will accept all the most common card and digital payment methods, including the physical and digital versions of credit, debit and prepaid cards. Most now feature near field communication (NFC) technology to accept contactless payments too.

1. Credit and debit card

Credit and debit cards have gone through a constant evolution in their more than 75 years of existence. Modern cards feature magnetic strip, chip and contactless technologies, and their info can also be input into a hotel payment terminal by hand.

2. Digital wallets

Utilising contactless NFC technology, digital wallets are beginning to make physical wallets and purses obsolete. Your hotel credit card terminal should be able to accept this form of payment. 

3. Contactless payments

Speaking of NFC ‘tap to pay’ technology, some portable terminals only accept this method of payment. As a backup these contactless solutions often let you manually enter a guest’s credit card information through an online portal.

4. Prepaid cards

Prepaid cards can be treated almost the same as credit cards, although one limitation can be with hotel security deposits, as most payment providers will only accept pre-authorisations on credit cards.

Hotel payment method priorities:

1. Digital wallet, contactless and online payments
2. Physical credit and debit cards
3. Prepaid cards
4. Cash, cheque and analogue payment methods

How do I choose the right hotel payment terminal for my property?

When choosing the right payment terminal for your hotel, several key factors will determine whether your investment truly serves your business needs. 

Mobile and tablet POS solutions are experiencing explosive growth among small businesses, with the hospitality sector leading this transformation as hoteliers recognise the flexibility and efficiency these systems provide. Perhaps most importantly, selecting a system that can scale alongside your hotel ensures you won’t outgrow your technology investment as your business expands. Integration capabilities cannot be overlooked – a siloed terminal that doesn’t communicate with your existing systems inevitably leads to operational errors, processing delays, and frustrated guests who expect seamless service. 

So what should a small, independent hotelier look for in a modern hotel room charge terminal?

1. Security 

The terminal should meet the highest level of Payment Card Industry Data Security Standards (PCI DSS), meaning it can securely verify PINs and process chip, contactless and online payments.

2. Integration with systems

Look for a payment system that offers seamless integration with your property management system (PMS), or better yet, a system that comes as part of an all-in-one solution like Little Hotelier, so you don’t have to integrate it at all.

3. User-friendliness

Choose a terminal that’s simple to use and requires minimal training. A clean and clear user interface avoids errors and makes for smoother guest check-in/out experiences.

4. Cost-effectiveness

Consider the upfront and ongoing cost of the solution. Compare fee structures, including any potentially hidden charges, to ensure you’re getting a good deal. Seemingly cost-effective options can often end up costing more in the long run.

5. Reliable support

Look for a solution that offers 24/7 support from a team of humans, like Little Hotelier does. Technical support should be easy to reach, responsive and pleasant to deal with.

Key takeaways:

• Prioritise security features to ensure your guests and business are protected
• Choose a solution that integrates – or comes pre-integrated – with your tools
• Test out solutions for ease of use
• Balance costs with features and support

Little Hotelier is very easy to use and simple to understand and implement. I am genuinely impressed and now fully confident that everything is within easy reach and well-managed.

Saban Demirbasa,

Head of Hospitality and Branding

Stone Court House

Read more

How do I integrate a hotel payment terminal with my guest booking engine?

To integrate a payment terminal with your booking engine, you need to choose a terminal that supports payment gateway integration with your current booking system. This allows online payments to be processed automatically, with transaction details syncing directly into your PMS.

To set up this integration, you’ll need to:

1. Check the compatibility between your terminal provider, booking engine and payment gateway.
2. Enable API or plugin integrations offered by the provider or a third-party service.
3. Work with your vendor’s support team to configure the syncing of guest data, charges and receipts.
4. Test transactions to ensure accurate reconciliation.

But there is a simpler option: choosing an all-in-one platform like Little Hotelier, which is designed to offer all the functionality an owner/operator could need, including the ability to process (and reconcile) payments.

Key takeaways:

• Ensure compatibility between your terminal, booking engine and payment gateway
• Set up and test the system before deploying it
• All-in-one tools like Little Hotelier can be a simpler option

FAQs about hotel payment terminals

How much does a hotel payment terminal cost (is it worth it)?

A hotel payment terminal typically costs between $300 and $900 upfront, plus monthly service or transaction fees. While this can represent a worthwhile investment for many properties, smaller hotels might find that an online payment processor like Little Hotelier offers all the functionality they need at a far lower price.

How can you stay secure and compliant with hotel payment processing?

Look for solutions with PCI DSS security that offer 24/7 human support and that regularly update their software.

When should you upgrade or replace your current payment terminal?

You should consider upgrading your terminal if you can’t process contactless payments, if it doesn’t integrate with your PMS, or if you don’t get the support you need. A fully online solution could be an option. Speaking of which…