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New card tansaction rules will threaten future bookings, says hotelier

27 March 2006

A Cotswolds hotelier is claiming confusion about a rule-change for customer-not-present transactions could threaten the security of his future bookings.

Daniel Ronson, owner of the Nant Ddu Lodge in Merthyr Tydfil, has been told by merchant services company Streamline that from 1 April he'll no longer be able to carry out customer-not-present transactions without a security code.

But Ronson has also been advised that holding onto the code along with card data at the time the reservation is made, which is meant to protect against no-shows, breaks the rules and isn't allowed.

"It means that from 1 April I could have no security in regards to hundreds of bookings that have already been made at my hotel," he said.

Although Ronson is yet to get his query answered directly, a spokeswoman for Streamline told Caterer the "more complex" requirements of businesses such as hotels had now been recognised, and would be sorted in a technical update to the payment terminals.

Security code

The security code is a three-digit sequence on the back of credit cards, which is designed to prevent fraudulent customer-not-present transactions over the phone or internet.

By Chris Druce

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