Answer in brief
Hotel revenue leaks between the card terminal and the folio wherever a payment is taken in one place and recorded in another. Deposits that never reach the bill, holds that expire before they are charged, refunds to the wrong card and tax worked out twice all come from the same gap. Close it and month-end stops being an investigation.
Two systems, one guest, one amount
A hotel takes money from a guest several times over a stay. A deposit at booking, a card authorisation at check-in, charges from the bar and spa, a balance at checkout, sometimes a refund afterwards. In many hotels, the card terminal and the bill live in different systems, and a person connects them by typing.
That gap is where revenue leaks. Not in large amounts on a single night, but steadily: a deposit taken on the terminal that nobody applied to the bill, a card hold that lapsed before the no-show charge, a refund keyed for the wrong amount. Finance finds most of it at month-end, when the terminal reports and the ledger refuse to agree. By then the guest has long gone, and the explanation for each difference is buried in someone's shift.
Where the leaks happen
Picture a guest who books direct and pays a deposit online. They arrive late, the desk authorises a different card, and during the stay they eat twice in the restaurant. At checkout they want the room on the company card and the extras on their own. Every one of those steps is a place where the terminal and the bill can come apart.
The usual leaks are small and familiar. What they have in common is that the money and the record of it were never the same thing. Individually they look like housekeeping errors. Together they are a steady cost that nobody budgets for, plus the hours finance spends finding them.
- Deposits taken but not applied to the guest's bill
- Card holds released or expired before the final charge
- Refunds made to the wrong card or for the wrong amount
- Tax and service charge calculated differently in different places
- Split bills settled correctly but recorded incorrectly
How to close the gaps
The goal is that every payment, hold and refund is recorded against the booking at the moment it happens, by the same system that holds the bill. Until you get there, these habits limit the damage. None of them requires new equipment, only discipline and a daily routine.
- Record every deposit against the reservation the moment it is taken.
- Track card holds and act before they expire, especially for no-shows and late arrivals.
- Refund from the original payment wherever possible, not by keying a new one.
- Set tax and service charge rules once and use them everywhere a price is shown.
- Keep card details off desks, notebooks and inboxes entirely.
- Reconcile daily, so a gap is a small fix today rather than a hunt at month-end.
What good looks like
When payments and bills live in one place, the question "does the money match the booking?" stops needing an answer, because they are the same record. Finance closes the day rather than investigating it, and guests leave with a bill they understand. It also protects the hotel. Keeping card details off your own desks and inboxes removes a whole category of risk, and a clear record of every hold, payment and refund makes a guest dispute quick to answer rather than a search through terminal slips.
- Every payment and refund is visible on the guest's bill as it happens
- Holds are released or charged on time, to your rules
- The right tax and service charge appear on every line
- Card data never sits on your own systems
- A daily journal goes to accounts without re-keying
Key takeaways
- Payment leaks come from money taken in one place and recorded in another.
- Track card holds and deposits against the booking as they happen.
- Reconcile daily so small gaps never reach month-end.
Questions
Why doesn't our card terminal report match our PMS?
Usually because payments were taken on the terminal and recorded in the PMS separately, by hand. Timing differences, a deposit not applied, a refund keyed twice or a payment posted to the wrong bill will all cause a mismatch. Daily reconciliation catches most of it. Removing the manual step prevents it.
How long does a card pre-authorisation last?
It depends on the card scheme and the issuing bank, and it can be shorter than a long stay. That is why holds need tracking: if one expires before the final charge, the money is no longer guaranteed. Check your provider's rules and act on holds before they lapse.
Is it safe to write card details down for a phone booking?
No. Card numbers on paper, in notebooks or in emails are a security risk and should never be kept. Take the payment through a secure channel, such as a payment link or your provider's system, so the hotel never stores the card details at all.