Credit/Debit Card Swipe Machine For 'Card Not Present' Charges

[simon43]

I have a well-established, Thai business that accepts customer payments by credit/debit card through the use of a card 'swipe' machine that is linked to our business bank account with Kasikorn Bank.

Occasionally, we need to charge a customer's card when we have all card details, (including security code), but do not have the physical card at hand. This occurs in our hotel when a customer cancels or 'no-shows', and where the terms of the booking authorise us to charge their card for 1 night of stay.

However, we are unable to charge the card in these circumstances, because we need to swipe the card in our machine. Kasikorn Bank tell me that they can authorise our bank account to charge customer cards without swiping, if we tie up 200,000 baht as a security deposit in our bank account.

I have spoken with several of our online booking agents (etc Booking.com. Asiarooms.com, LateRooms.com), and they all state that none of their other Thai hotels have this problem, and all of them can charge the card without physically having to swipe the card. I cannot believe that all these hotels have lodged a 200k baht security deposit, just so they can charge an authorised amount to a customer credit/debit card.

Does anyone know of a Thai bank which offers this facility?

Note that I am talking about fully authorised charges, but a charge which the card-holder may not wish to pay, since they have booked the hotel room within the relevant T&Cs, and then not turned up on their date of stay. This means that we have held the room for them, possibly turning away other guests, and then we have no means to levy the room cancellation/no-show fee that we are entitled to.

Simon

[cmsally]

SCB, Bangkok Bank , & Kasikorn all have this, but you need to be co. ltd with VAT registration etc.

You do need to tie up money but 200k seems a bit steep. All these internet payment gateway systems are handled by main bank head offices in BKK. Provincial and non head office branches know zilch about it. Best to contact the head office of each to check.

SCB system is called Sips

BKK is Ipay

K Bank payment gateway.

[WilliaminBKK]

What about Paypal Business ? charge the guest the fee, then transfer the funds to your commercial account?

With Paypal if a client disputes then you are in the penalty box.

[ivowatson]

So, anyone knows about a Thai bank where one doesn't have to pay the 200.000 security deposit?

[BillR]

What about Paypal Business ? charge the guest the fee, then transfer the funds to your commercial account?

With Paypal if a client disputes then you are in the penalty box.

great way to lose your paypal account the first day you use it.

And Paypal TOS 4.6

4.6 No Surcharges.

You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method

. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

[aurelius]

I checked at Bangkok Bank about your query, because it seems to me that what you're asking should be quite standard, and the payment gateways that have been suggested above seem to be overkill for just the common problem of handling no-shows. They said that it there is some function or ability on the EDC terminal to be able to do the type of transaction you are talking about - it is not available to all merchant types - but definitely is available for hotels (maybe rental cars as well). Suggest that you get someone to get in touch with them and try to get a bit more detail. Try the credit card department in head office if the branch people don't know.

The payment gateways are for accepting ecommerce transactions- such as reservations - they require some level of security deposit because of the number of "put up a website, collect payments for things and then disappear" operators who have sullied the reputation of all ecommerce operators.

[monty]

I checked at Bangkok Bank about your query, because it seems to me that what you're asking should be quite standard, and the payment gateways that have been suggested above seem to be overkill for just the common problem of handling no-shows. They said that it there is some function or ability on the EDC terminal to be able to do the type of transaction you are talking about - it is not available to all merchant types - but definitely is available for hotels (maybe rental cars as well). Suggest that you get someone to get in touch with them and try to get a bit more detail. Try the credit card department in head office if the branch people don't know.

The payment gateways are for accepting ecommerce transactions- such as reservations - they require some level of security deposit because of the number of "put up a website, collect payments for things and then disappear" operators who have sullied the reputation of all ecommerce operators.

This function is indeed available on the EDC machines (they run pretty standard software), but, at least in the case of K-bank, they ask a 200,000 Baht deposit to activate the function.

In a way this would be understandable, as this function allows you to charge credit cards with very little info, even less info the what is required on-line!

[simon43]

As Monty says, the CNP charging facility could easily be open to abuse and fraudelent charges, so I understand the bank's position on this. But for an established hotel business who has used the bank's card swipe machine for years without issue, you would have thought that the bank would be more amenable.

AsiaPay tell me that they offer a CNP service, but I'm having problems getting the correct documents/application forms from them.

Meanwhile, the 'no-show' charges for this week that I am unable to legitimately charge total about 8,000 baht. Grrrr!!

Simon

[djlest]

Ever been into a shop and swiped your dirty scratched credit card to see it fail. Normally someone will simply enter the number and the 3 digits on the back and do it manually.

I would assume all credit card EDC machines have that capability, or at least should have this as not every swipe goes through.