Virtual Credit Cards for Hotels: How to Charge and Manage VCCs

For South African hotels, guesthouses and lodges, managing VCCs means keeping track of activation dates, available balances and payments that need attention. A guest may already have paid the booking channel while your property still needs to collect its payment.

How do virtual credit cards work for hotels?

For a reservation paid through an online travel agency (OTA), the channel may provide a VCC instead of sending a bank transfer. The card has payment details, an authorised value and rules governing when it can be charged. Booking.com and Expedia use virtual cards for eligible reservations; the payment method depends on your agreement and the booking.

1. The guest pays the booking channel. Check the reservation instructions to establish who collects the accommodation payment.
2. Your hotel receives VCC information. This may arrive through a supported software connection or be available in the channel’s extranet.
3. You collect the permitted amount. Use a compatible payment service once the card is chargeable.
4. You reconcile the payment. Match the reservation, successful transaction and subsequent provider payout.

A hotel channel manager can connect reservation delivery with your property management system. However, receiving a reservation does not automatically mean its VCC details have been supplied or its payment collected.

How and when should you charge a hotel VCC?

Use the activation date, currency and chargeable amount shown for the individual reservation. Do not assume every VCC becomes available at check-in. Booking.com documents several activation policies, while other channels have their own payment instructions.

You do not necessarily need a physical POS terminal. A payment provider that supports the relevant virtual cards and card-not-present transactions can process them online. Confirm that your property’s merchant account supports this use.

Check these details before collecting payment

• Payment responsibility: confirm this is a VCC payout, rather than a bank transfer or a guest-pay booking.
• Activation and funding: check both the permitted charging date and available funds. An active card can still be unfunded.
• Amount and currency: use the authorised payout details, not an assumed amount based on the room price.
• Previous transactions: check whether a colleague or automated process has already charged the card.
• Expiry and collection deadline: review the channel’s deadline as well as the card expiry details.
• Booking changes: check whether an amendment, cancellation or no-show changed the amount due.

Charging a Booking.com virtual credit card

Open the reservation’s payment information and confirm the VCC activation date and current balance. Booking.com distinguishes between cards that are available but inactive, active but not yet funded, partially charged and fully charged. Check the latest status before processing an outstanding amount.

Charging an Expedia virtual card

First check whether the reservation is Expedia Collect or Hotel Collect. For an Expedia Collect reservation paid by virtual card, follow the booking’s instructions for the permitted charge date and amount. Confirm which charges are covered and which the guest must pay separately. Do not apply Booking.com activation rules to an Expedia card.

Why is a virtual credit card declined?

A declined VCC does not automatically mean the guest has failed to pay. It can reflect timing, funding, card details or restrictions on your payment account. Read the transaction response and check the reservation before trying again.

On smaller screens, scroll horizontally to view the full table.

Keep an exception list with the reservation reference, amount outstanding, reason, next action and staff member responsible. A failed charge needs an owner even when automatic retries are available.

How do you reconcile VCC payments, fees and guest extras?

Reconcile three records: the OTA’s payment breakdown, the transaction recorded against the reservation and the payment provider’s settlement. A successful card charge and money arriving in your bank account are separate events.

OTA commission and card-processing fees are different costs. Check whether commission is deducted from the channel payout or invoiced separately. Also confirm your provider’s applicable fees, settlement currency and payout schedule; there is no single VCC rate that applies to every South African property.

For the wider workflow across direct bookings and other payment methods, read our hotel payment processing guide.

How does RoomRaccoon help manage hotel VCCs?

RoomRaccoon’s integrated hotel payment solution with Peach Payments supports VCC management alongside reservations. For compatible connections, the booking channel must supply the VCC information needed to process the payment.

Review cards in the Payments module

Use the VCC view to check the associated booking channel, activation date, balance and charge status. This helps your team identify payments that are due and transactions requiring follow-up.

Automate eligible charges through Peach Payments

RoomRaccoon’s Peach Payments documentation states that eligible VCCs are checked daily. Failed automatic charges are retried once per day for up to three days after the activation date. Cards already charged manually are skipped by the automatic process.

Automation still depends on valid details, sufficient funds and provider approval. Review unresolved payments after the retry window and confirm which behaviour applies to your property’s payment setup.

The video introduces the VCC dashboard. The interface may differ from your current account. Watch the video on YouTube.

Frequently asked questions about hotel virtual credit cards

Are all OTA bookings paid by virtual credit card?

No. A booking may use a VCC, a bank-transfer payout or payment collected directly from the guest. Check the payment instructions for each reservation.

Can I charge a VCC before the guest arrives?

Only if the card is active, funded and the booking’s payment terms permit it. Some activation policies allow collection before arrival; others do not.

Can I use the VCC for extras or a damage deposit?

Only where the issuer explicitly authorises those charges. An accommodation VCC should not be treated as an unrestricted payment method for incidentals. Arrange a separate payment method for items outside its authorisation.

Does a VCC mean payment is guaranteed?

Receiving a VCC is not confirmation that your hotel has been paid. You still need to collect an eligible amount successfully and check settlement. Booking changes, funding issues and transaction declines can require follow-up.

How should I handle a cancellation or refund?

Check the booking’s cancellation terms and the channel’s current payment instructions. Confirm any cancellation amount still due before charging. If you already collected funds, follow the channel and provider’s refund process for that transaction and record the adjustment against the reservation.

Can a VCC be charged more than once?

That depends on the issuer’s rules. Booking.com supports partially charged VCC statuses, so a VCC is not universally limited to one transaction. Check the remaining balance and permitted use before collecting another amount.