Delivery of Customer Service » Taking Payments

What you'll learn this session

Study time: 30 minutes

Different payment methods used in the travel and tourism industry
How to process cash, card and digital payments correctly
Security procedures for handling payments
How to deal with payment problems
The importance of accuracy when taking payments
Foreign currency considerations in tourism payments

Introduction to Taking Payments in Travel & Tourism

Taking payments is a crucial part of customer service in the travel and tourism industry. Whether you're working at a hotel reception, travel agency, tour operator desk, or attraction ticket office, handling payments correctly is essential for business success and customer satisfaction.

Key Definitions:

Payment method: The way a customer pays for a product or service (cash, card, digital payment).
Transaction: The process of exchanging money for goods or services.
Point of Sale (POS): The place where a customer makes a payment for products or services.
Payment terminal: Electronic device used to process card payments.

💵 Why Payment Handling Matters

Taking payments correctly is important because it:

Creates trust between the business and customer
Ensures the business receives the correct payment
Helps prevent fraud and financial losses
Provides a professional end to the customer service experience
Can be the last impression a customer has of your business

🔐 Payment Security

Security is vital when handling payments because:

Customer financial data must be protected
Businesses must comply with data protection laws
Fraud can damage both customers and businesses
Mistakes can be costly and damage reputation
Trust is easily lost but hard to rebuild

Common Payment Methods in Travel & Tourism

Cash Payments

Despite the rise in digital payments, cash remains important in tourism, especially in certain destinations and for smaller purchases.

💰 Handling Cash Correctly

Always count cash twice before accepting it
Count change back to customers clearly
Keep large notes separate from others
Use counterfeit detection methods for high-value notes
Always give receipts for cash transactions
Never leave cash unattended

⚠ Cash Handling Challenges

Risk of theft or loss
Counterfeit notes
Need for secure storage
Time-consuming to count and reconcile
Requires regular banking
Foreign currency identification

Card Payments

Card payments are the most common method in the travel and tourism industry, especially for larger purchases like flights, package holidays and hotel stays.

💳 Debit Cards

Takes money directly from customer's bank account. Typically has lower processing fees for businesses than credit cards. Usually requires PIN verification for in-person transactions.

💸 Credit Cards

Allows customers to pay later. Offers additional protection for customers making large purchases. Often preferred for booking holidays as they provide Section 75 protection in the UK.

📶 Contactless

Quick tap payment method. Has transaction limits (usually £100 in the UK). Increasingly popular for smaller tourism purchases like attraction tickets, café payments and transport.

Processing Card Payments

When taking card payments, follow these steps to ensure accuracy and security:

Confirm the amount with the customer before processing
Process the payment through the terminal, following on-screen instructions
Verify the card belongs to the customer (check signature for signed cards)
Ask for PIN or signature as required by the payment system
Wait for authorization from the card issuer
Provide a receipt and explain any relevant details
Store card information securely according to data protection rules

Case Study Focus: The Savoy Hotel, London

The Savoy Hotel in London handles thousands of high-value transactions daily. They use a multi-step verification process for all card payments over £1,000, including:

ID verification of the cardholder
Secondary authorization for transactions over certain limits
Dedicated payment security team to monitor for unusual patterns
Staff training every 3 months on latest payment fraud techniques

This system has reduced payment fraud by 87% since implementation, showing how proper payment procedures can protect both the business and customers.

Digital and Alternative Payments

The travel and tourism industry has seen rapid growth in digital payment methods, which are increasingly important to understand:

📱 Mobile Payments

Apps like Apple Pay, Google Pay and Samsung Pay allow customers to pay using their smartphones. These are becoming increasingly popular for in-destination purchases.

🌐 Online Transfers

Services like PayPal, Wise and bank transfers are common for pre-booking travel services. These often have lower fees for international payments.

💲 Digital Wallets

Services that store payment information securely online. Popular with younger travellers and for frequent international travellers who want to avoid currency conversion fees.

Handling Foreign Currency

In tourism, you'll often encounter foreign currencies, especially if you work in attractions, hotels, or retail that caters to international visitors.

💱 Foreign Currency Tips

Keep an up-to-date exchange rate chart visible
Use a calculator to work out conversions
Clearly communicate the exchange rate to customers
Be aware that some notes might look similar but have different values
Check if your business charges a commission on currency exchange
Be familiar with the most common currencies you'll encounter

✅ Currency Acceptance Policy

Most tourism businesses should have clear policies about:

Which foreign currencies they accept
Current exchange rates offered
Any fees or commission charged
Whether change is given in local or foreign currency
Minimum/maximum amounts for foreign currency transactions

Dealing with Payment Problems

Even with careful procedures, payment problems can occur. Here's how to handle common issues professionally:

❌ Declined Cards

Handle discreetly to avoid embarrassing the customer. Suggest trying another payment method. Never speculate about why a card was declined - this could be for many reasons unrelated to funds.

🔃 Refunds

Follow company policy exactly. Document the reason for the refund. Process refunds to the original payment method where possible. Clearly explain any fees or deductions that apply.

❓ Disputed Charges

Listen carefully to the customer's concern. Check records thoroughly. Involve a manager if needed. Document all communication about the dispute. Aim to resolve quickly and fairly.

Payment Reconciliation and Records

At the end of your shift or day, you'll typically need to reconcile payments and ensure records are accurate:

Count all cash and compare to system totals
Check card payment totals match the terminal reports
Record any discrepancies and report them according to procedure
Complete any paperwork required by your company
Secure payments according to company policy (safe, deposit, etc.)
Sign off with a supervisor if required

Real-World Example: Payment Accuracy

A tour operator in Edinburgh found they were losing approximately £7,500 annually due to small payment errors that weren't being caught during reconciliation. After implementing a new "double-check" system where two staff members verified end-of-day totals:

Errors decreased by 94%
Staff felt more confident handling payments
Customer disputes about payments dropped significantly
The time spent resolving payment issues decreased by 80%

This shows how important accurate payment handling and reconciliation is to a tourism business's bottom line.

Summary: Best Practices for Taking Payments

To excel at taking payments in the travel and tourism industry:

Be accurate - Double-check amounts before processing
Stay secure - Follow all security protocols without exception
Maintain privacy - Never read card details aloud or leave financial information visible
Be transparent - Clearly explain all charges, fees and policies
Stay updated - Keep learning about new payment methods and security threats
Be prepared - Know what to do when things go wrong
Stay professional - Handle payment issues with discretion and courtesy

Remember that taking payments is often the final interaction a customer has with your business - making it a crucial moment in the overall customer service experience.

🧠 Test Your Knowledge!