Payment Validation at Time of Booking
As previously communicated, Marriott has been actively evaluating and developing a strategy to address Guaranteed No-Shows (GNS) and Late Cancellations, and the negative revenue implications associated with these practices. As part of this strategy, we would like to announce the implementation of Payment Validation at Time of Booking (formerly referenced as Zero Dollar Authorization) to all Marriott Rewards-participating hotels in the U.S. and Canada which use credit card services through Chase. This will assist with improving credit card security by checking credit card validity at the time a guest makes a reservation within Marriott.com and the Marriott Mobile App. Payment Validation at Time of Booking has now launched to all Marriott Rewards-participating properties in the U.S. and Canada in the Marriott Mobile App and on Marriott.com. Once the credit card number is submitted when a guest books their reservation, an authorization of $0 will be processed for VISA, MasterCard and Discover, and a $1 authorization will be performed for American Express. For Elite Rewards members, this authorization will only occur if they are booking a reservation within three days of check-in.
As a new transaction type, the fee associated with Payment Validation at Time of Booking is $.025 per transaction and will be billed to hotels along with their other credit card processing charges from Chase. As part of Marriott International’s contract with Chase, we have secured the provision that there will not be an additional charge on top of the $.025 fee that is charged by other credit card companies (VISA, American Express, etc.).
As we continue to research chargeback reasons and evaluate EMV (Europay, MasterCard and VISA) solutions, this initiative is a significant and tangible milestone in improving credit card security, along with other initiatives introduced, such as Marriott’s new 48-hour cancellation policy. For questions and additional resources, visit MGS.
We thank you for your continued support as we implement this initiative and continue to work towards delivering industry-leading value for our owners and franchisees.
