MasterCard Rules (PDF)

D.1 Guaranteed Reservations
Lodging Merchant Services
D.1 Guaranteed Reservations
A hotel, motel, resort, or other lodging Merchant participating in the Guaranteed
Reservations service is obligated to have a room available when the Cardholder
arrives (until checkout time the next day). The Cardholder is obligated to cancel
a confirmed reservation before 18:00 at the hotel, motel, or resort (Merchant’s
local time). If the cardholder fails to cancel the confirmed reservation, the
Merchant can charge the Cardholder a no-show charge equal to one night’s
lodging.
The following procedure applies:
1. A Cardholder contacts a participating Merchant and requests to guarantee
a room with his or her Card. The reservation clerk explains the terms of
the MasterCard Guaranteed Reservations service, specifically including the
fact that an authorization will be performed at the time of arrival and the
cancellation procedure that the Cardholder must follow to avoid being
charged a no-show charge equal to one night’s lodging. The Merchant
may obtain authorization for an amount equal to one night's lodging at
the time the reservation is placed.
2. The clerk records the Card and Cardholder information; confirms the room
rate and location; issues the Cardholder a reservation confirmation number;
and advises the Cardholder to retain it. The Merchant is recommended also
to confirm the guaranteed reservation in writing, advising the Cardholder of
his or her confirmation number and cancellation procedures.
3. If a Cardholder who has guaranteed his or her reservation by use of his or
her Card contacts the Merchant to cancel the reservation within the agreed
upon period, then the Merchant is obligated to cancel the guaranteed
reservation and issue the Cardholder a cancellation number that verifies that
the reservation has been canceled. The Cardholder should be advised to
retain the cancellation number. The Merchant is recommended to confirm
the cancellation in writing, advising the Cardholder of the cancellation
number.
4. A Cardholder who has guaranteed a reservation by use of his or her Card
arrives within the specified period (until checkout time the next day), the
Merchant is obligated to provide a room. If the Merchant is unable to
provide a room, then the Merchant must provide, at no additional charge, a
comparable room for one night, transportation to the other lodging, and a
three-minute domestic or long distance phone call as the Cardholder deems
necessary to advise of a change of location.
5. Before the Cardholder’s expected arrival, the Merchant shall prepare a
registration card and assign a room number on that card.
6. If the Cardholder does not cancel and does not stay at the Merchant
location, then the Merchant may bill the Cardholder for one night’s room
rate. The following procedure should be followed:
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MasterCard Rules • 12 December 2012 D-1