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January 25, 2017 Owner & Franchise Communications

Credit Card Operations Update – January 2017

As previously communicated, Marriott International has been actively evaluating and developing a strategy for the Europay, MasterCard, and Visa (EMV) global standard, otherwise known as Chip and Pin. We’d like to take time to recap the highlights of recent EMV-related discussions, review updates since our last communication, and provide insight to Marriott’s credit card operations roadmap moving forward.

$0 Authorization

Beginning in late Q2 2017, Marriott will begin the implementation of $0 Authorization within both Marriott.com and the Marriott Mobile App. This tool will allow for the authentication of all credit card types at the point of reservation. It will perform authorizations based on risk profile, further enhancing our focus on fraudulent activity while improving credit card security among our guests. Marriott data through July 2016 indicates that unauthorized cards account for the vast majority of fraudulent activity within Marriott systems; thus, we believe that this tool will prove to be a significant milestone in further improving credit card security. The $0 Authorization also includes protection of Guaranteed No-Show (GNS) revenue via credit card validation at the time of reservation.

Credit Card Chargebacks

Another important aspect of credit card security through Marriott’s systems is chargebacks. While chargeback rates at Managed by Marriott and franchised hotels are up 1.2 basis points (bps) from 2015 to 2016, EMV-related chargebacks only represent 7 to 9 percent of the total volume. In short, by focusing on implementing EMV as a means of combating credit card chargebacks, we risk not addressing over 90% of total chargeback volume. Furthermore, Marriott continues to be well below the lodging industry’s Gross Chargeback Rates for Visa, MasterCard and American Express. As we continue to develop and implement effective solutions to address credit card fraud, the following steps can be taken to reduce risks of counterfeit card acceptance:

  • Verify the guest’s identification. For more information on I.D. verification, click here.
  • Do not hand over key(s) until authorization of the credit card used is complete by checking the guest into the Property Management System. You may also compare the last 4 digits on the credit card to the number in your PMS to ensure the numbers match.
  • Be watchful of unusual amounts of money being charged to guest rooms (e.g., gift shop) and investigate if needed. Your PMS also allows you to run a “Credit Limit” or “High Balance” report to help identify questionable amounts and transactions.

Updated Mobile Check-In Standard

In addition to these recommendations to reduce credit card fraud, we have updated our standards to cover guests using Mobile Check-In/Mobile Key. If a Marriott Rewards member does not reflect any stay history, or property PMS systems show that their last stay was more than 12 months prior to check-in, then identification should be validated and a credit card may be swiped to authenticate the card. As a reminder, hotels should follow the below procedures relative to Mobile Check-In/Mobile Key:

  • Front desk associate must verify that the guest would like to use the credit card on file by verbally confirming the last four digits.
  • Mobile guests must not be asked to present a credit card.
  • Do not swipe a credit card unless the guest requests a different credit card be used for payment.*
  • Mobile Key points of clarification include:
    • At least one recorded stay is required
    • Confirmation of rate eligibility
    • Authorization of credit card
    • If one of the above is not valid, hotels should prompt guest with a message advising them to visit the front desk.
*Updated standard is an exception to this portion of front desk procedures.

For more details on the Mobile Check-In Standard, click here. Further details regarding Mobile Key will be provided in a forthcoming Mobile Win The Stay Update.

Included for your reference are our most up-to-date Credit Card Operation FAQs. Please let us know if you have any questions moving forward.

We thank you for your continued partnership and support as we work to deliver the most effective solutions, and provide industry-leading value, to our owners and franchisees.