An authorization rule is a formula that determines the anticipated total expenses that will be charged to a credit card. The authorization rule, authorization history, and additional authorization options are available if payment integration is active at your property.
The authorization rule calculates the anticipated expense amount for the reservation and obtains the required credit card pre-authorization. The reservation is automatically updated with the new authorized amount and the approval code during the End of Day Credit Card Authorization (night_audit_authorization) procedure.
On the day of check out, an authorization executes using the authorization rule attached to the reservation the first time the hotel performs either a manual or batch authorization. This procedure helps to eliminate an excessive number of individual authorizations on the day of check out, particularly when guests stay and use the hotel facilities on the day of departure.
Properties usually set a default authorization rule. The rule is automatically applied to each guest's reservation. You can set the default rule using the Authorization Rule setting on the Credit Cards menu screen.
You will not normally need to change the default authorization rule for a guest's credit card unless there are unusual circumstances (for example, for guests with multiple night stays and/or when multiple guests are charging to the same credit card).
The property can rely on a single default authorization rule that applies to all reservations (depending on whether the IFC > Advanced Authorization Rules is On or Off.)
Or, the property can apply different authorization rules based on Room Type, Room Class, Rate Code, Rate Category, Reservation Type and Source Code or a combination of the same. If none of the combinations match with the reservation, a default authorization rule will apply.
The following Authorization Rules are configured in OPERA Cloud on the Administration menu> Financial>Cashiering Management>Authorization Rules screen.
|
Rule Number |
Rule Description |
|
1 |
Nights x (Daily Rate) |
|
2 |
Nights x (Daily Rate + Amount) |
|
3 |
Nights x (Daily Rate + (Persons*Amount)) |
|
4 |
Nights x (Daily Rate + Percentage) |
|
5 |
Amounts |
|
6 |
Nights x (Percentage) |
|
7 |
Nights x (Daily Rate + Amount - Daily Rate) |
|
8 |
Nights x (Daily Rate + (Persons*Amount) - Daily Rate) |
|
9 |
(Nights x Daily Rate) + Amount |
The Daily Rate value in these authorization rules is a sum of the Room Rate + Add to Rate Packages + Fixed Charges, plus the associated taxes.
Available Rules and Examples
The Daily Rate element defined in the rules is based on rate code configuration. When a rate code is tax exclusive, the prices and generates would be taken into consideration.
If there is a reservation for Mr. and Mrs. Smith (2 adults) for 3 nights with a Rack rate code of $100, and if the Rack rate code is configured as tax exclusive with 10% city tax configured in generates, then the authorization definitions and amounts would be as follows:
Rule 1 - Nights*(Daily Rate)
Example 1: The authorization amount would be for $330.
3 * (110) = 330
Rule 2 - Nights*(Daily Rate+Amount)
Example: If $20 is the default amount, the authorization amount would be for $390.
3 * (110 +20) = $390
Rule 3 - Nights*(Daily Rate + (Persons*Amount))
Example: If $20 dollars is the default amount, the authorization amount would be for $450.
3 * (110 + (2 *20) = $450
Rule 4 - Nights*(Daily Rate + Percentage)
Example: If 10% was configured in the setup, then the authorization amount would be for $363.
3 * (110) + 11 = $363
Rule 5 - Amount
Example: If the flat amount was defined for $50, then the authorization amount would be $50.
Note:
The first authorization (from either Batch, Scheduled, or Check-in authorization) would be the Amount specified for the rule + total balance (if reservation balance is > 0).The amount specified for the rule (if reservation balance is < 0)
All Subsequent authorizations (from Batch, Scheduled, End of Day)
Total Reservation Balance – Existing approved amount
Rule 6 - Nights*(Percentage)
Example: If the configured percentage amount is 10%, then the authorization amount would be $33.
* 3 * (110) = $33.
Rule 7 - Nights*(Daily Rate + Amount - Daily Rate)
Example: If $20 dollars is the default amount, the authorization amount would be for $60.
3 * (110 + 20 - 110) = $60
Note:
When the Reservations > Exclude Rate From Auth Based On Routing application parameter is set to Y, Rule 7 and Rule 8 are not available for use with authorization rule schedules.Rule 8 - Nights*(Daily Rate + (Persons*Amount) - Daily Rate)
Example: If $20 is the flat amount, the authorization amount would be for $120.
3 * (110 + (2 * 20) - 110) = $120
Note:
When the Reservations > Exclude Rate From Auth Based On Routing application parameter is set to Y, Rule 7 and Rule 8 are not available for use with authorization rule schedules.Rule 9 - (Nights * Daily Rate) + Amount
Example: If $20 is the default amount, the authorization amount would be for $350.
Note:
A single flat amount is applied to the (nights * daily rate) calculation, regardless of the length of stay. This flat amount applied also includes incidental charges for the entire stay and will not obtain more authorization during the End of Day process until the existing incidental approval amount is used up.Scenario 1
Create a Reservation for 2 nights, Rate amount $100.00 , Tax = 15.00.
Attached authorization rule 9 , estimated approval = (2 * 115) + 50 = $280.00.
Checked in the reservation and $280.00 was authorized.
Posted a charge for 20.00 on the folio.
Verify that the Estimated Approval Amount = 0.
Run EOD.
No additional authorization obtained during EOD.
Scenario 2
Create a Reservation for 2 nights, Rate amount $100.00 , Tax = 15.00.
Attached authorization rule 9 , estimated approval = (2 * 115) + 50 = $280.00.
Checked in the reservation and $280.00 was authorized. Posted a charge for 200.00 on the folio.
Verify that the Estimated Approval Amount = $200.
Run EOD.
Additional authorization for $200 obtained during EOD.
(This is because $200 charge will consume the original incidental $50.00 authorization and rule 9 will again calculate estimated approval amount for remaining nights as (1 night * 115.00) + 50 ) = 165.00 + 35.00 (reservation balance over already approved amount (315.00 - 280.00) = 200.00.
Scenario 3
Create a Reservation for 2 nights, Rate amount $150.00, Tax = 5.25.
Attached authorization rule 9, estimated approval = (2 * 155.25) + 50 = $360.50.
Checked in the reservation and $360.50 was authorized.
Posted a charge for 200.00 on the folio.
Verify that the Estimated Approval Amount = $200.
Run EOD.
Additional authorization for $200 obtained during EOD. (This is because $200 charge will consume the original incidental $50.00 authorization and rule 9 will again calculate estimated approval amount for remaining nights as (1 night * 155.25) + 50 ) = 205.25 - 5.25 (original approval 360.50 - reservation balance after EOD will be 355.25 (room /tax 155.25 + 200)) = 200.00.
Scenario 4
Create a Reservation for 2 nights, Rate amount $100.00, Tax = 15.00.
Attached authorization rule 9, estimated approval = (2 * 115.00) + 50 = $280.00.
Checked in the reservation and $280.00 was authorized.
Posted a charge for 20.00 on the folio
Make a payment for $135 ( = 1 Night + posted charge = 115 + 20).
Verify that the Estimated Approval Amount = 165 ( = Rate for the remainder of stay + amount = (1 night * 115.00) + 50.
Run EOD.
Additional authorization for $165 obtained during EOD.
Scenario 5
Create a Reservation for 1 night, Rate amount $100.00 , Tax = 15.00.
Attached authorization rule 9 , estimated approval = (1 * 115.00) + 50 = $165.00.
Checked in the reservation and $165.00 was authorized.
Extend the reservation stay to 2 nights.
Verify that the Estimated Approval Amount = $115.00 ( = 280.00 - 165.00).
From Credit Card > Authorization > Additional >.
Obtain an authorization for 115.00.
Posted a charge for 20.00 on the folio.
From RSEDIT click on Ellipses next to Payment method and verify that the Estimated Approval Amount = 0.
Run EOD.
No additional authorization obtained during EOD.
End of Day Authorization Amount/Percentage Calculation
For Amount or Percentage values defined in authorization rules, the End of Day authorization calculation will not consider the incidental amount/percentage for nights that have already passed.
For example, a reservation for 2 nights with a cash payment method has a rate amount of 200.00 per night and 10% tax. The reservation is checked in. After check in, the guest changes the payment method to a Visa credit card with authorization rule 2 — Nights *(Daily Rate + Amount). The amount for the authorization rule is $50.00.
For this reservation, if the authorization had been obtained during check-in or before End Of Day, assuming the credit card was attached prior to check in, the authorization amount would have been $540 (2*(220+50)). If authorization is obtained during the End of Day processing, the authorization would be obtained for $490; the End of Day authorization would not consider the incidental amount ($50 in this case) in the calculation of the authorization amount, since the night of the stay has already passed.
Multiple Authorization Rules - Rule Schedules (Advanced Authorization Rules)
The Advanced Authorization Rules feature allows you to specify a schedule that defines which authorization rule will apply to a reservation based on either or both the reservation type and the source code. When an authorization rule cannot be determined by the reservation type and/or source code belonging to the reservation, a default authorization rule, specified at the property level, applies.
OPERA Cloud evaluates rule schedules based on the following order of precedence when determining which authorization rule applies to a reservation:
Rule schedule and reservation have matching Room Type, Room Class, Rate Code, Rate Category, Reservation Type, and Source Code.
Rule schedule and reservation having matching Room Type.
Rule schedule and reservation having matching Room Class.
Rule schedule and reservation having matching Rate Code.
Rule schedule and reservation having matching Rate Category.
Rule schedule and reservation have matching Reservation Type.
Rule schedule and reservation have matching Source Code.
If none of these elements results in a match, the default authorization rule is applied.
|
Authorization Rule |
Room Type |
Room Class |
Rate Code |
Rate Category |
Reservation Type |
Source code |
|
1 |
DLX |
TOWER |
AAA |
NEG |
6PM Hold |
ORG |
|
2 |
SNG |
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|
3 |
TOWER |
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|
4 |
AAA |
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|
5 |
NEG |
|||||
|
6 |
6PM Hold |
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|
7 |
ORG |
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|
8 (default) |
Parent topic: Configuring Cashiering Components