subject: Hotels Need Insurance, Security, To Thwart Payment Card Fraud [print this page] Running a successful hotel takes a great deal of concerted effort from an army of staff and management, from well before the time the guest arrives at the front desk to the time he or she departs. All the way through, just think how many times a guests credit card could be utilizedto book the reservation, pay for meals at the hotel restaurant, drinks at the hotel bar, spa services at the hotel spa, sundries and merchandise at the hotel gift shop, equipment or usage fees at the hotel fitness center, gambling fees incurred at the hotel casino, and so on. Unfortunately, the wide distribution of this data means that at any time during these transactions, the guests payment card data (key information used to process a payment) is at risk, which could translate into hotel insurance claims in Florida or other locations where the hotel is based.
Theft of payment card information is on the rise
Like other business sectors, the hotel industry is ripe for experiencing the explosive growth in stolen payment card data theft and fraud. With so many opportunities for data to be compromised during transmission during the reservation process alone (by phone, email, or fax) long before the guest will even arrive, the damage that can be done is staggering. Hotels whose payment card data is compromised must contend with a variety of negative results that go far beyond the fraud itself, which can threaten the viability of the hotel:
a possible increase in insurance premiums
damage to the hotels prestige and image
loss of bookings from guests whose confidence is shaken in the hotels ability to keep their information secure
cancellation of payment card acceptance contracts with the payment card organizations if they believe the hotel failed to follow mandatory security procedures for payment card data handling
To help safeguard guests payment card information, make sure all employees are trained in following the mandatory security measures set by the Payment Card Industry Data Security Standard. Its important to also:
Perform an inventory of data storage on hand so the hotel knows precisely what information it has on file
Reduce the amount of handling and storage of such data
Ensure card numbers are partially obscured
Refrain from storing information about payment card security codes
Hotel insurance in Florida is critical to protecting a hotel against all manner of risks, including theft of payment card information or damages arising from the compromise of that information. Consult a professional agent, who can provide details about coverage options and provide access to valuable information that can help protect the hotel and its guests from this and other risks.
by: Bill A Stanley
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