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How Much Does an Online Payment Gateway Cost for Small Hotels?

Posted in Costs

A large part of operating a small hotel is developing an online presence that allows you to attract a global audience.

Your website allows you to easily promote your accommodations, amenities and the local area to a diverse range of travelers.

In light of this, it’s critical that you offer your guests an opportunity to book with you directly on your website. But how do you get paid?

You will need to implement an online payment gateway in order to accept credit card payments on your website – but it won’t come for free.

It’s a worthwhile investment, but these are the costs you need to consider when setting up an online payment gateway.

Set up fees

Many online payment gateway providers require bed and breakfast owners to pay set-up fees. The set-up fee should not deter you from setting up a payment portal for your small hotel, as this fee is nominal and is charged by most gateway providers.

Ongoing fees

It is common for these providers to also charge monthly fees for continued service. Ongoing fees are the largest fees associated with implementing an online payment gateway.

Most providers offer several levels of service, allowing you to select an option that fits your business and your budget.

You will pay more per month for value-added features, such as fraud detection or 24-hour customer support.

Transaction fees

Transaction fees are the norm. Transaction fees may require you to pay a certain percentage to the payment portal for every transaction (about 2% to 5% per transaction) or they may require a flat fee per transaction.

Verify that the payment portal accepts your currency and inquire about any fees for currency conversions.

Refund fees also are required by some payment gateway providers, regardless of the reason for the refund.

In the event of identity theft or fraud, they may insist on a higher refund fee.

Get all of the juicy details from your online payment gateway provider

It’s important to get an outline for all fees prior to selecting an online payment gateway provider for your small hotel.

Online payment capability is essential in a world where most travelers want to book online. There are several premier online payment gateway providers available, each with their own fee structure.

With a system like Little Hotelier’s integrated payment solution, you will only be charged a small percentage of each transaction. No setup fees or ongoing monthly, refund, support, or cancellation fees are in place.

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