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6 Best Credit Card Processing Companies for Hotels in 2023

Ivana Shteriova Ivana ShteriovaFinance Specialist November 10, 2023
November 10, 2023
For a seamless guest experience, it’s essential for your hospitality business to have an up-to-date payment system that can accommodate the latest payment preferences. Contactless check-in/check-out is on the rise, but to be able to offer it to every customer, you’ll need an efficient credit card processor that can accept online payments in addition to standard card-present transactions.

However, taking online bookings makes you more susceptible to fraudulent charges, so you’ll need a payment processor with strong security and risk monitoring features. On top of this, you’ll want a credit card processor that’s easy to use and offers competitive rates. Unfortunately, too many services come with hidden fees and less-than-stellar security records, which could be even more complicated if you’re considered a high-risk merchant.

Based on my extensive research, Leaders Merchant Services (LMS) emerged as the best option for most hotels. Thanks to its flexible approach, you can build a custom plan and negotiate the best deal for your business. In combination with its e-commerce integrations and 24/7 chargeback management support, LMS provides an all-in-one payment solution for hotels. I also found five other options that might work better, depending on the type of hotel you run.

Short on Time? These Are the Best Credit Card Processors for Hotels in 2023

  1. Leaders Merchant Services – Flexible pricing model that ensures the lowest rates for most hotels, free POS equipment, and a dedicated team to handle chargebacks.
  2. PAYARC – The most comprehensive support for hotels processing international payments and diverse pricing plans to meet your needs at any processing volume.
  3. ProMerchant – Two solutions for processing MOTO payments and high-risk merchant accounts at reasonable rates.

See 3 More Great Options | Comparison Table

What We Look For in the Best Credit Card Processing Companies for Hotels

In addition to being easy to use, a credit card processor should have specific features to help improve the guest experience and make your job easier, such as the ability to support different payment methods and handle chargebacks. Here’s what I focused on when compiling my list:
  • Competitive and diverse pricing models. All the credit card processors on my list offer competitive prices and may even be willing to negotiate based on your needs. I also included processors with various pricing structures such as interchange-plus, tiered, and membership to help you find the best fit for your hotel.
  • Strong security. A credit card processor should ensure all transactions are protected from fraud and guests’ data is protected from breach. All payment solutions on this list are PCI (Payment Card Industry) compliant at minimum, and many have additional security features such as risk monitoring, end-to-end encryption, GDPR (General Data Protection Regulation) compliance, chargeback management, and more.
  • Modern equipment. I made sure to only include credit card processors with the most up-to-date, secure hardware that lets you accept a variety of payment methods. Some may even offer a free POS terminal under certain conditions.
  • Value-added features for hotels. These processors offer a range of tools to manage your hotel, like a business dashboard, accounting integrations, and chargeback management assistance. They also supply a payment gateway for online bookings and a virtual terminal for over-the-phone payment collection. Additionally, they offer value-added features for hotels, such as payment scheduling and loyalty programs.
  • Customer support. Having access to efficient customer support is a must when it comes to credit card processing, so all payment solutions on my list have responsive sales and technical support.

Leaders Merchant Services (LMS) lets you tailor a plan to your needs and negotiate your rates. This approach ensures you’re only paying for the features you need, which is particularly convenient for small hotels that don’t need many extras. It’s also a great option for established hotels that want to switch processors because LMS promises to meet or beat your rates. You’ll receive a $200 gift card if it fails to at least match your current processing fees.

LMS offers great flexibility by allowing your guests to pay however they want. In addition to processing all major credit/debit cards, LMS can process payments from Google, Apple, and Samsung Pay – and even PayPal and Venmo with, if you buy a Clover POS device. While there are month-to-month terms, if you commit to a long-term contract, LMS will give you a Clover device, significantly reducing your equipment expenses.

LMS provides 24/7 technical support, with an entire team dedicated to helping you dispute chargebacks. What’s more, its monthly fee of around $9.00 and per-transaction fees of ~2% + 0¢ are among the lowest in the industry.

Features and Benefits

  • Fast onboarding. With LMS, you can start accepting credit card payments as soon as the same day you apply for a merchant account
  • LMS funding. If you’re just starting out or need a cash injection, LMS provides merchant cash advances, which you can pay back through a small commission on your future sales.
  • Hospitality integrationsPersonalized accounts. LMS offers services tailored to your industry, so you can benefit from hospitality-oriented features like gift cards and loyalty programs. If you use QuickBooks for accounting, you can access the Instant Accept feature, which lets you process any payment (card-present and mobile) in real time without launching QuickBooks.
  • Authorize.net integration. For an additional monthly fee, you can integrate the popular Authorize.net payment gateway to your website and accept online payments, or use its virtual terminal to take payments over the phone.
See our in-depth Leaders Merchant Services review for more details.

Free POS terminal  (with long-term contract)
Security PCI compliant, advanced fraud detection and prevention, end-to-end encryption, tokenization, and chargeback management
Customer support 24/7 technical phone support
Transaction fees on cheapest plan ~2% + 0¢
Monthly fee on cheapest plan $9.00

PAYARC provides global processing support at competitive rates. Its own gateway is available for $5/month, but it also integrates with global payment solutions that can accept over 150 currencies. For example, the Planet Payments gateway allows visitors to pay in their local currency. Additionally, PAYARC lets you process international payments using Authorize.net at a discounted rate of $10/month.

PAYARC also provides a suite of invoicing tools at no extra cost. You can allow free cancellations until a specified date and schedule payments afterward, ensuring timely payments and reducing financial loss related to no-shows. You can also sell memberships, which could contribute to increased customer loyalty and repeat business. On top of this, you can create professional branded invoices, send payment reminders, and adjust discount prices.

PAYARC requires new merchants to provide six months of processing statements and three months of banking statements. If you can meet these requirements, PAYARC has plans for any volume. If you experience a fluctuation in bookings, you might find the flat rate plan with no monthly fees and transaction fees of 2.49% + 30¢ (in-person) suitable for slower seasons. During peak seasons, its membership plans starting at $69.00/month with transaction fees of 0% + 15¢ (in-person & online) are a cost-effective choice.

Features and Benefits

  • Business management dashboard. PAYARC provides a comprehensive dashboard, allowing you to monitor transaction history and manage payments. Additionally, you can access real-time data and analytics to assess your hotel’s performance.
  • Advanced security. Hospitality businesses often store sensitive data, becoming targets for cybercriminals. PAYARC offers a comprehensive set of security tools, including thresholds, tokens, address verification, and encryption to protect guests’ data. You can also block activity from specific customers, locations, and IP addresses.
  • Chargeback management. Chargebacks are common in the hotel industry due to frequent cancellations. PAYARC’s team is dedicated to helping you prevent and reduce chargebacks and will create a free chargeback mitigation plan for your business. Additionally, you can access more fraud and chargeback tools through PAYARC’s integration with Ethoca.
  • Free POS. Depending on your selected plan, you might receive a free PAX A920 terminal. This elegant-looking device features a high-speed thermal printer, a long-lasting battery, and the ability to process transactions swiftly.
For more features and benefits, check out our detailed PAYARC review.

Free POS terminal  (with some plans)
Security Level 1 PCI-compliant, end-to-end encryption, tokenization, chargeback mitigation assistance, and fraud monitoring and prevention
Customer support 24/7 phone and email support
Transaction fees on cheapest plan 2.49% + 30¢ (in-person)
Monthly fee on cheapest plan N/A

3. ProMerchant: Best for Hotels That Take MOTO Payments

If your guests prefer to call to reserve their stay, ProMerchant offers two options for collecting Mail Order/Telephone Order (MOTO) payments. You can use the free Payments Hub Virtual Terminal to manually enter transactions, whether they come via phone, mail, email, text, fax, or in person. If your site also takes bookings, Authorize.net provides a trusted gateway for online payments and a virtual terminal for processing MOTO transactions and refunds.

ProMerchant offers a choice of free POS equipment, including options from Verifone, Payanywhere, PAX, and Ingenico, based on your hotel’s specific needs. For example, if your hotel doesn’t have a traditional reception desk, you can use the free Payanywhere mobile app to accept EMV chip and magstripe cards. Together with the free Bluetooth card reader, you can also process contactless payments.

ProMerchant stands out as one of the few processors that cater to high-risk merchants, offering fair and transparent pricing. Thanks to integrations with 12 high-risk processors and advanced fraud mitigation tools, ProMerchant provides robust processing solutions to hotels associated with a higher level of risk. ProMerchant’s standard monthly fee is $7.95 – but you might pay slightly more if you’re considered high-risk.

Features and Benefits

  • QuickBooks integration. Authorize.net offers automatic syncing of your daily transactions with QuickBooks, freeing up hours of administrative work from your schedule and ensuring accurate bookkeeping.
  • Merchant account management. You can access comprehensive transaction management tools, including transaction history and reports, through the secure Payments Hub website. You can also manage voids and refunds and print, email, or text receipts.
  • Zero-cost processing. If you have restaurants in your hotel, ProMerchant’s zero-cost processing program allows you to transfer the typical 4% processing costs directly to customers who pay with a card.
  • Monthly contracts. Enjoy the flexibility of using ProMerchant’s services on month-to-month contracts with no cancellation fees, a particularly beneficial feature for seasonal hotels that shut down during the off-peak season.
See our expert ProMerchant review to learn more.

Free POS terminal
Security PCI-compliant, end-to-end encryption, tokenization, payer verification, advanced fraud detection and prevention
Customer support 24/7 phone and email support
Transaction fees on cheapest plan 3% + 10¢ (credit)
Monthly fee on cheapest plan $7.95

POS Pros integrates with 365villas, a vacation rental property management software that manages bookings, payments, and guest information in one place. You can also manage housekeeping and maintenance, run marketing campaigns, and monitor analytics, all from the comprehensive 365villas platform. The software includes a customizable booking engine that supports multiple languages and currencies.

365villa’s Unified Inbox consolidates all your communication channels, such as email, Airbnb Messenger, and WhatsApp. It equips you with everything you need to manage a complex hotel business or multiple vacation rentals. It’s perfect for high-end hotels that want to offer a superior branded booking experience. But if you run a simple small hotel business, this solution might stretch your budget.

Regardless of whether you sign up with 365villas, POS Pros offers a broad range of POS hardware from trusted brands and pairs you with a POS specialist to find the best options for your needs. For busy hotels or lodges, POS Pros typically recommends the Clover Station range. POS Pros also offers free terminals, including the Dejavoo Z11, Clover Mini, or Clover Flex. Monthly fees start as low as $5.00, with just as affordable transaction fees of 0.30% + 10¢ (in-person) and 1.95% (online).

Features and Benefits:

  • On-the-go business management. 365villas is fully accessible on mobile devices, enabling you to manage your hospitality from anywhere.
  • Credit card holds. You can use 365villas to place holds on credit cards, accounting for potential damages or other sundry charges incurred during a guest’s stay.
  • Electronic payments. Access the Authorize.net payment gateway and virtual terminal through POS Pros at a fraction of the usual cost. You can use this reliable solution to process online or MOTO payments.
  • Quick loan approval. If you choose POS Pros as your processor, you can access up to $500,000 in working capital to hire staff, renovate, and more. To qualify, your hotel should be over a year old and generate $50,000 annually or at least $4,200 monthly in the last quarter. Approval can take just 10 minutes.
Head over to our in-depth POS Pros review for more details.

Free POS terminal
Security Level 1 PCI-compliant, tokenization, chargeback management, and fraud prevention
Customer support 24/7 support and POS technical help desk (with purchase of POS equipment)
Transaction fees on cheapest plan 0.30% + 10¢ (in-person)
Monthly fee on cheapest plan $5.00

Flagship Merchant Services stands out as one of the few processors willing to overlook a lack of credit history or bad credit, meaning it will likely accept your application even if you fall in the high-risk category. You can set up your Flagship account within a few hours, which is ideal for hotel owners who want to get started with credit card processing immediately.

That said, Flagship offers tiered pricing plans as default, which can end up costing you a lot more than you’d initially expect because fees are usually categorized as non-qualified. If you’re new to card processing, negotiate for an interchange-plus plan, a clearer and often more affordable option. The processor’s interchange rates start at $7.95/month, and transaction fees are 3.58% + 0.19¢ (in-person) and 3.98% + 0.21¢ (online).

Flagship can help you save in other ways. You can choose from various POS terminals, including a free Clover Mini POS or an EMV-certified terminal. If you need to accept credit card payments directly on your website, Flagship lets you use the Authorize.net payment gateway at a discounted price.

Features and Benefits

  • Wireless mobile payments. Flagship’s wireless swiper allows you to take payments on the go, which is handy if you run a smaller accommodation business, such as a bed & breakfast or inn. You also get an app for iOS and Android devices that keeps track of cash and card transactions, refunds, and more.
  • Account manager. When you set up your Flagship account, you’ll be assigned a personal account manager to walk you through all available services and answer any questions you might have.
  • iAccess business management portal. This reporting tool gives insight into your sales, online reviews, and industry statistics, so you can assess your business’s health and see how well you stack up against the competition.
  • API for customized e-commerce solutions. Flagship’s API allows you to integrate a shopping cart into your website without compromising your gateway’s security.
For more details, read our in-depth Flagship Merchant Services review.

Free POS terminal
Security PCI, GDPR, and CCPA compliant
Customer support hours Phone support only
Transaction fees on cheapest plan 1.58% + 19¢ (in person)
Monthly fee on cheapest plan $7.95

6. Stax: The Best Option for High-Volume Hospitality Businesses

Stax charges a flat monthly fee starting at $99.00 with no percentage-based markup. Provided your US-based hospitality business brings in more than $8,000 monthly in credit card transactions, you could save up to 40% with Stax. Its pricing model suits businesses processing high-volume/high-value transactions but is actually quite expensive for those with low card volume.

Stax lets you create a custom shopping cart you can add to your website, making it easy to accept payments for online reservations. You can also integrate third-party apps like Mailchimp to help you reach more customers via email campaigns and HubSpot to track payments and send receipts. Despite offering such a large set of tools, Stax’s software is easy to set up and use.

All three of Stax’s pricing plans (Grow, Pro, and Ultimate) include dashboard and analytics software, ACH processing, and a free terminal. Regardless of your plan, you’ll pay 0% + 10¢ (in-person) per transaction, with 0% markup on interchange rates. If you want more advanced features, such as the ability to schedule payments, you’ll need to upgrade to the Ultimate plan, which costs $199.00.

Features and Benefits

  • Process all types of payments. Stax’s free payment terminals accept several types of in-person transactions (swiped, keyed in, and contactless). You can also install Stax’s mobile app on your phone or tablet to use your own device as a terminal, which is quite handy for smaller hospitality businesses.
  • Same-day funding. Stax’s paid add-on deposits payments in your merchant account on the day they’re made, which can be a big benefit for boutique hotels or new businesses that need a smooth cash flow.
  • Accounting integrations. Stax integrates with apps like QuickBooks and Xero to make accounting administration easy. With QuickBooks’ integration, all your data is automatically synced so you won’t have to worry about reconciling payments.
  • In-house customer support. In addition to a comprehensive knowledge base, Stax offers responsive sales and technical support through live chat, email, and phone, so you can get help quickly if any issues arise.
Want to learn more? Read our expert Stax review.

Free POS terminal
Security PCI compliant, HIPAA compliant, advanced fraud detection and prevention, and more
Customer support Live chat, email, ticket, fax, and phone
Transaction fees on cheapest plan 0% + 10¢ (in-person)
Monthly fee on cheapest plan $99.00

These Are the Best Credit Card Processing Companies for Hotels

You can easily manage in-person and online payments with all the credit card processors on my list, ensuring top-grade security for your business and guests. However, the ideal payment processor for your specific business will depend on your unique needs.

If you need an affordable processing solution, Leaders Merchant Services lets you negotiate prices and tailor your plan. In addition, you’ll gain access to industry-specific features to enhance guest engagement, including gift cards and loyalty programs. LMS also provides a dedicated chargeback management team available 24/7 to support your hotel business.

If you often host guests from abroad, PAYARC provides reliable international processing. PAYARC’s dynamic currency conversion feature allows guests to pay in their local currencies, ensuring convenience and transparency. Additionally, it provides a diverse pricing structure, accommodating your hotel’s needs at any processing volume.

If you run a traditional hotel or inn that receives a lot of bookings over the phone, ProMerchant offers two MOTO payment solutions. Choose between the free Payments Hub Virtual Terminal and Authorize.net’s services. Beyond a virtual terminal, Authorize.net also offers a payment gateway for online bookings.

If you’re still undecided, here’s a quick comparison of the different credit card processors that made my list.
Best Feature Best For Monthly fee on cheapest plan Transaction fees on cheapest plan
Leaders Merchant Services Low custom rates and free equipment Small- to mid-sized hotels looking for the most affordable deal $9.00 ~2% + 0¢
PAYARC Integrations with international gateways Hotels that need strong security for international transactions N/A 2.49% + 30¢ (in-person)
ProMerchant Free software to process MOTO payments Hotels that receive a lot of bookings over the phone $7.95 3% + 10¢ (credit)
POS Pros Integration with robust vacation rental management software Hotels that need comprehensive property management support $5.00 0.30% + 10¢ (in-person)
Flagship Merchant Services Fast and easy setup for high-risk merchant accounts Hotels looking to start processing payments immediately or hotels with no/bad credit history $7.95 1.58% + 19¢ (in person)
Stax Extensive range of payment and e-commerce features Hotels that process a high volume of transactions $99.00 0% + 10¢ (in-person)


What payment methods can a hotel accept?

With the right payment processor, you’ll be able to accept whatever payment method each guest finds most convenient. For instance, Leaders Merchant Services lets you accept everything from credit cards and digital wallets to ACH and bank transfers.

Is the hotel industry considered high-risk?

The hotel industry is often considered risky because it is associated with a high number of chargebacks. New hospitality businesses or ones handling a very high volume of monthly transactions can also be considered higher risk. Fortunately, credit card processors like Flagship Payment Services offer affordable rates for high-risk companies.

What is a good credit card processing rate for a hotel?

Solid rates for most merchants fall between 1.70% – 2.05%, but this is influenced by various factors, such as the type of transaction and monthly volume. A good credit card processor should be able to offer the rates tailored to your particular business. For instance, Leaders Merchant Services promises to meet or beat your current rates, so you can negotiate the best deal for your accommodation property.

What is the best payment processor for hotels?

It depends on your needs. For example, PAYARC offers comprehensive international support, while POS Pros is best for large hotels or resorts that need robust property management software and modern equipment to support their operations. On the other hand, Stax is the best option for high-volume hotels thanks to its clear and cost-effective pricing with low flat-rate transaction fees.

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