How Does Payment Processing Software Work?
Though it seems like a simple process, the working method of payment software is a complex task that requires various parts to work in harmony together. As an organization owner, you might be unaware of the entire process that runs behind when you accept a payment.
However, you need to understand the entire mechanism, as it will assist you in dealing with many potential issues. Thus, to know this, first comprehend the payment processing industry. How does payment processing software work? What are the fundamental components and prerequisites for this software? So, without further delay, let us begin with the components exploration of this payment software.
1. Components of payment software
If you wish to accept payments, you will require three primary pieces of software. As all these work in harmony, missing one of them might lead to system failure.
2. Merchant account
You can call it a back that allows your organization to accept payments. Without it, your customer cannot send you money. You can receive this account from any reputable payment processing company, a bank, or an independent contractor. But you do not obtain direct access to the account. The funds you receive in your merchant account will get automatically transferred to your given bank account.
3. Payment processor
The payment processor handles the transactions process by your customer and bank. Payment processors deal with matters like security, card limits, available funds, credit card validity, and so on. In addition, one of the crucial responsibilities of a payment processor is verifying whether the card information is accurate or not to safeguard you from fraudsters. They also look after accidental transactions, errors, and incorrect charges. Thus, you can consider a payment processor as a mediator between the bank and the merchant.
4. Payment gateway
Payment gateway is a significant component of payment processing software as it is a mediator between the payment processor and the website. These gateways assist your merchant account with credit/debit card issuers. In simple words, they supervise the technical side of the transaction to make sure you can successfully accept your customers’ payments.
5. Working process of payment software
After reading the above components, you can see that all these are inseparable from each other. The successful working process of payment software depends on them. So, now it is time to learn about the entire process of payment processing software.
• At first, the customer selects an item or service and completes the checkout process by proceeding to the payment page. On that page, consumers will locate multiple payment options with various alternatives. Then, the customer selects to pay using a debit or credit card by entering the details on the payment page.
• After entering the details, all this information goes to the payment gateway depending on your integration (server-to-server integration, hosted payment page, or client-side encryption). Again, the payment gateway transfers the data to the payment processor.
• Next, the payment processor shares the transaction details to the credit or debit card network by checking the customer’s card details.
• After verifying the information, the card network demands approval to release the funds with the consumer’s issuing bank. It is a crucial step, as it will inspect whether your bank account has sufficient funds to complete the transaction or not.
• Then, the issuing bank releases a response to the card network that demonstrates whether or not the transaction is not approved. If the payment gets approved, the acquirer will accept the payment from the issuing bank and hold the capital into your account.
• After a couple of days, the amount will settle in your merchant account by the payment processor.
• Finally, the merchant might exhibit a payment confirmation page or invite the customer to choose another payment method.
In other words, payment software is an indispensable part of organizations. The entire process is significant and efficient as it will safeguard you and your customers from fraudulent activities.
Effective Ways to Save Money on Hotel Booking
A hotel booking system has become a crucial, indispensable business tool for most hotels in present times. Since it is accessible at all hours, it offers more convenience for hotels to receive bookings and guests to make reservations. Aside from that, the system can enable the hotels to save money on their bookings, which is a crucial factor in increasing their profit margins.
Effective ways to save money on hotel booking
The first step in saving money on hotel booking is to install the hotel booking system. There will be an initial setup cost, and if the hotel decides to upgrade the system at a later date or add more features, there may be an additional charge. Apart from that, the hotel does not incur any regular expenses in running and using the system. It can save money on reservations in the following ways:
The system serves as a marketing brochure
Hotels have to set aside a specific budget for marketing purposes, but they can reduce this to an extent by using their hotel booking system as a marketing brochure. Prospective guests can use the booking system to preview the interior and exterior areas of the hotel. They can view photographs and videos of the hotel lobby, guest rooms, dining area, restaurant, conference rooms, recreation areas, and gardens. They can find out about the cuisine the hotel serves and the amenities it may offer, such as spa and beauty care, and the luxury item shops it has on its premises. The imagery and the available amenities can affect the guests’ decision to book their rooms at the hotel.
By using the system as a marketing brochure, the hotel can build its brand without expending additional expenses on the marketing front. Additionally, it can build brand loyalty with it by increasing customer satisfaction. Guests, who could book their rooms quickly and easily through the system and enjoyed their stay at the hotel, are likely to leave favorable hotel reviews and recommend the hotel to their families, friends, and acquaintances. The hotel can benefit from such word-of-mouth marketing without paying for it.
The system allows for direct booking
With a hotel booking system, prospective guests can book their hotel rooms directly. They can make their room selection, provide personal details, input how long they intend to stay at the hotel, and make their payment for reserving the room. The whole process is quick and easy. And if the guests decide to make changes, such as upgrading to a more luxurious room or extending the duration of their stay, they can do that without any issue.
By enabling guests to make direct bookings through its hotel booking system, the hotel does not need to depend on online travel agencies to get reservations for it. Of course, it may decide to also partner with the online travel agencies and give them access to its system, but it is no longer essential. Some hotels may forgo working with online travel agencies altogether.
If they do that, they can save on the commission that these agencies charge. Since some agencies charge up to 30% commission for every reservation that comes through them, it can add up to a substantial amount. Saving on these commission payments can increase the hotel’s profits.
The system gathers essential guest data
The prospective guests input their details into the hotel booking system, and this information then gets integrated into the hotel’s property management system. Since they have this guest data at hand, the hotel does not need to assign a team to undertake the independent market search, and that will save their money. The hotel management staff can review the available guest data and use it to create effective marketing strategies and marketing campaigns.
They can send guests regular newsletters and provide them with information about credit card points, perks, and rewards, hotel coupons, hotel loyalty programs, off-season deals, package deals, and more. They can also use the hotel guest data to stay informed about the preferences of returning guests and improve their hospitality experience by providing them with what they like. With these simple steps, the hotel can increase its room bookings and thereby earn greater profits in the long term.
How Hotel Booking System Makes Things Run Smoother for Hotels?
Online bookings comprise almost 63% of the travel and tourism segment’s revenue every year. A good Hotel Payment System will let you efficiently manage online reservations. Automating reservation processes with a reliable hotel booking system reduces the risk of manual errors and losses in business.
Furthermore, having a streamlined booking system in place helps hoteliers provide a more intuitive booking experience to guests.
As technology continues its rapid advance across all industries around the world, hospitality is really beginning to see the benefits. Hotel management software has come a long way in helping hoteliers improve the way their business operates, and there is little doubt as to its transformative impact. Here are a few advantages of implementing a modern hotel management system.
Saves Big Time on Administrative Tasks
The right Hotel Payment System will significantly reduce the time you spend on manual administrative tasks. The software does the majority of the work and lets you divert your time to more crucial tasks, such as serving your guests. The software will take care of every department at your property including front of the house, revenue management, housekeeping, and others. If you pick the right solution, you can make significant time savings across almost every area of your business, thereby boosting your staff’s productivity and satisfaction.
Develop Strong Relationships with Your Guests and Increasing Online Visibility
A more streamlined check-in and check-out experience will enhance your guest happiness. And that’s only the tip of the iceberg anything from improved communication and other services will also boost guest loyalty. Choosing the best software will likely mean an increased retention level in both guests and staff.
The right software is a crucial factor to develop your online presence. You can integrate guest-facing software like hotel booking engines, chatbots, and a guest portal with your website design, enabling you to instantly accept online reservations and make guests feel confident in their choice to book directly with you. Google values and assesses the user experience on websites, and those that offer a better user journey and interface will rank higher on Google searches and other search engines.
Implementing an Effective Revenue Management System
Most Hotel Payment System includes pricing tools and other features to optimize revenue. Gone are the days of having just a peak season price and a low season price if you’re not setting prices in a more strategic manner, you’re losing out on bookings and not making the most of the guests that do a book. You should be able to create and customize product rates, rate dependencies, and special offers and rules such as package rates.
Managing Distribution Functions and Increase in Bookings
A modern hospitality booking system should be able to easily connect to a channel manager so you can advertise across many channels and easily promote your business across the industry’s OTAs and third-party booking services. It provides real-time information that will help you grow your number of reservations and spread awareness of your property.
Every feature in your hotel management system should work to improve your overall number of bookings. Whether you intend to explore new markets or boost bookings in the low season, the right software system is all about optimizing and maximizing what you can achieve. Revenue management and a direct booking engine are two obvious features that will help you in this regard, but everything from integrations to smart reporting and automation will ultimately contribute.
Accurate Regular Reports
Hotel management, finance, and revenue teams will have access to accurate daily earnings reports thanks to data-savvy Hotel Payment System. Meanwhile, operations and marketing reports will help you and your team to make reliable, data-driven decisions across your business. If everything is in the cloud, these invaluable metrics are at your fingertips whenever you need them, without the need for time-consuming manual exporting and compiling.
Analyze Your Customer Base
Market and guest segmentation is another important benefit of the right guest management software system. The GM and Marketing Managers can keep track of the different types of visitors, with key demographic breakdowns such as age, gender, and nationality. This data allows you to make informed decisions on your marketing strategy and increase the long-term revenue trends of your business.
What are the Benefits of Direct Booking?
Direct bookings are referred to hotel reservations that guest books by connecting directly with a hotel and not involving a third party. Direct bookings are usually booked using the hotel’s website, by dealing with the sales team either by phone, email, or walk-in.
Direct booking is profitable for you and deals with the hotel directly. From the hotel’s point of view, direct booking is advantageous as they will have the opportunity to gift the guest and build up loyalty with the guest from the time guest enters the hotel website. Also, hotels will have all the customer data, so that they can contact them for campaigns.
The various benefits of direct booking are:
1) Room Selection Categories – Having a direct link with the hotel, allows you to select the room type from various available room categories. It also becomes easy for you to analyze the room price and see the various amenities that each room type provides. You will also get a glimpse of room structure and be able to decide which room type is feasible for your stay.
2) Cancellation – The cancellation charges while you book directly with a hotel is better than the booking through a third-party vendor. Also, you can be sure of the cancellation charges at the time of booking as they will be listed on the website. So, you will get the actual picture of the cancellation condition.
3) Booking Changes – Once you decide on a specific room type and book your stay, at some time you might prefer to change the room type. In such a case you can easily make this without any complication. On request to the hotel customer support, you can easily specify your requirement and get the room type changed based on the availability.
4) Updated Room Availability Information – When you are booking directly with a hotel, you can see the actual update on the room availability. You can also see the room type that are available on a specific date. So, it is easy for you to involve indirect booking and book the room type based on availability.
5) Customer Support – If you have any specific queries at the time of booking, you will get 24 X 7 customer support to clear them. The customer support will help you with a feasible solution and they would also give personal tips if you are looking for recreational activities. So, you can do your booking at ease.
6) Booking Flexibility – If you have any specific interest or condition, the hotel will help you out with it. For example, you require a room near a swimming pool, or you are going with a couple of families and you require rooms next to each other. In such cases, you will get the flexibility to choose your room, and hotel staff will be happy to serve you on your special request.
7) Avail of any Special Offers – When the hotel announces any special offers on a specific season, you can avail of that only on direct booking. In this case, it is profitable for you, and can check out available offers on their website. Based on your availability you can go ahead to avail of that offer and can have a happy stay at the hotel.
8) Easy Payment – Nowadays, the hotel offers their customers all payment types like credit/debit card payments, Google Pay, Paytm, etc. so that you can pay at your ease.
9) Streamlined Flow – When users interact using the hotel website interface in a streamlined flow and a single platform by filling personal information, hotels reduce booking abandonment and it also boosts conversions. Usually, a faster checkout process is directly correlated with more sales.
10) Minimum Redirects – The hotel website usually optimizes visitors at the bottom of the funnel and takes away disorderly redirects to form booking templates. Guests will book when there is an easy interface and navigation.
11) Loyalty Programs – Many hotels provide loyalty points for booking with them. Users get points and when they sign-in for their next booking, they can use the guest’s loyalty IDs to unlock the rewards they have. This will enable a guest to keep connected to the hotel again and again.
Lift and Shift Migration: Why is it the Right Option for You?
The wide adoption of cloud computing across different industry sectors has primarily been due to the many business benefits and convenience that cloud solutions offer. However, the main issue that many companies face is about moving their data and applications from the traditional, on-premise infrastructure to the cloud. The process is known as cloud migration, and it requires a proper strategy to ensure a smooth transfer.
If your in-house IT team does not have the technical know-how to handle the process, you may need to hire the services of a third-party company that specializes in handling cloud migration. While there are several migration strategies, the most commonly used one is the lift and shift migration strategy.
Understanding lift and shift cloud migration
To explain in simple terms, lift and shift cloud migration is about taking or lifting data and applications from the place where you have hosted them—usually, the infrastructure on your company’s premises—and moving or migrating them directly to the selected cloud solution. What you are doing is rehosting everything on the cloud. The process involves moving everything as it is from one location to another. Since you do not have to make any changes, the migration is time-saving and cost-effective.
Is lift and shift cloud migration the right option for you?
The lift and shift cloud migration might be the right option for you if you seek a strategy that is not too complicated and will not use up a lot of resources. With the lift and shift strategy, you can get the following benefits:
It can save a lot of time
Since you do not have to make changes in your data and applications to move them to the cloud, the process can be fast and time-saving. There will be no downtime issues with your applications. The end-users of the applications will not lose their access to them during the move, so your business will not face any loss in productivity.
It can save business expenses
It is not necessary to allocate in-house resources to affect data or application changes for the cloud migration. You also do not have to set up virtual machines for the migration process. Additionally, you can move the data and applications together without increasing the workload by too much back and forth. If you hire a third party to handle the migration, that may be the only additional cost you have to bear for the migration process.
It does not require extensive planning
Lift and shift migration to a cloud-only involves moving your business data and applications from the infrastructure on your premises to the cloud. That does not require you to undertake data backups and extensive planning. It may also not be necessary to inform your employees and customers before the migration as the likelihood of any downtime occurring in the applications is non-existent.
It does not pose any risk to the applications
As there are no changes to the configurations of the applications during the migration, they will have no cause to malfunction. Your end-users can continue to use the applications without experiencing any usage issues. There will be no question of facing downtime.
It offers security and compliance
You also do not have to be concerned about security and compliance issues with the migration since the cloud service provider will handle those matters for you. They will also monitor the cloud frequently and install security updates as they become available. Your data and applications will remain safe in the cloud.
So, should you opt for lift and shift migration?
It might be a good idea if you are looking for a strategy that offers convenience and ease of transfer. However, it is essential to know that while there will be no data or application issues during the transfer, you might face a few performance issues in the cloud environment. It usually happens when you have applications that you have not built to work in the cloud. So, they are not likely to work as well, and you may have to make some changes. You may face the same issues with custom-built business applications and may need to continue hosting them on the infrastructure on the premise.
