Keeping clients debit/credit card details

[taggyboy]

Hi

Does anyone know the law on retaining clients credit/debit card details for use when they don't show for appointments?

How do hotels and such like get around the problem?

Having assumed that you have this written in your no show/cancellations policy


Much appreciated

 

[Ruth Mills]

With hotels, I think they normally take an "authorisation" at the time of booking, which then leaves a card transaction open which they can then subsequently either complete (taking the deposit fee from the client's account) or cancel.

Although you are probably best checking with your bank.

Keeping hold of a client's credit card details is almost certainly a security risk though; for companies taking online payments, there are rigorous security standards that must be followed - https://www.pcisecuritystandards.org/ - think what might happen if you had a book with client card details written down and this was subsequently stolen, for example...

 

[taggyboy]

Thank you Ruth, I thought of you as I typed the post...Perhaps contacting Cardsave (my pdq provider) may help or streamline as they would probably be aware of any laws.

I thought keeping clients card details somewhere was inappropriate, I just want to get around these no shows and late cancellations.

 

[Ruth Mills]

Thank you Ruth, I thought of you as I typed the post...Perhaps contacting Cardsave (my pdq provider) may help or streamline as they would probably be aware of any laws.

I thought keeping clients card details somewhere was inappropriate, I just want to get around these no shows and late cancellations.

Yep, I think that would be best to talk to Cardsave or Streamline, like you say, as they should have the definitive answer for you.

 

[taggyboy]

An update!

I contacted my pdq provider this morning. They have advised that the "pre authorisation" system, (used in hotels) whereby the clients details are put into their pdq's and held until they either check out or fail to cancel 24 hours prior is not available. They do not use this software!

As regards to keeping their card details on file anywhere, I have been informed is illegal!

 

[Ruth Mills]

An update!

I contacted my pdq provider this morning. They have advised that the "pre authorisation" system, (used in hotels) whereby the clients details are put into their pdq's and held until they either check out or fail to cancel 24 hours prior is not available. They do not use this software!

As regards to keeping their card details on file anywhere, I have been informed is illegal!

I suspected it would be against the law to keep a record of clients' card details; the whole security and data protection implications of doing that are exactly why the Payment Card Industry (PCI) standards are so stringent for online payment processing systems that deal directly with credit card numbers!

Shame you can't take a pre-authorisation with your current PDQ provider though. Maybe you could just take an actual non-refundable deposit at the time of booking that then gets deducted from the final cost of treatments for the client?

 

[taggyboy]

I think that will be the plan. A deposit for new clients and full payment for no shows and failure to cancel prior to 24 hours notice.

Thank you for your help Ruth

 

[naughtienix]

I take a £10 deposit for any service that costs £30 or more. It can be done over the phone or in person and with a reminder text or email, people usually show up.

 

[smooth]

I didn't think you could hold card details but thought that if you did, they had to be kept in a very secure location subject to stringest password protection? I have accounts with many companies and the biggest ones all hold my card details, they did this without asking. I once changed my bank card and called them up to tell them, do you know what they said? "Let me just go and get your card and I'll update it" EEEEK.

With my payment system that is integrated into my site, the card details are not kept, they get processed straight away by streamline and the user gets an authorisation code straight away. Very secure and the security certificate wasn't as expensive as I thought either.

 

[birdgirl101]

From what iv gathered after changing my pdq machine, u can pay a one off fee of about £35 which kind of gives u permission to keep details & that your sticking to the rules of handling peoples details. A lot of pdq companies stick this charge on your monthly bill so it's best to invest in your own certificate of it. Sorry to be so vague been a little while since I sorted all this out x

 

[Curly Bamboo]

I didn't think you could hold card details but thought that if you did, they had to be kept in a very secure location subject to stringest password protection? .

yep, you can store the details on the computer however the software has to have security encryption.

However you need to check with your mechant/bank because they are a little vague with their anwsers!

 

[Serenity Beauty]

I don't get it? Why would u charge a customer for not turning up, surely that will loose u business left right and centre?? We all say there is a cancellation fee, to encourage customers to cancel I'n adequate time to refill the appointment! Taking their card details and keeping them on file for this reason is illegal and pretty darn immoral! I've had no shows for 3 hour treatments, or rather a cancelation 20 mins before an appointment! It's part of the industry and people do forget or have emergencies etc, it's a fact of life, u can't penalise them for this??? Imagine if the doctors/ dentist etc charged u for every missed or late appointment? I've never I'n 15 years come across any one who actually wanted to follow through this threat with cancellations/missed appointments! I'm a bit shocked :-0 x

 

[craigkeane]

I don't get it? Why would u charge a customer for not turning up, surely that will loose u business left right and centre?? We all say there is a cancellation fee, to encourage customers to cancel I'n adequate time to refill the appointment! Taking their card details and keeping them on file for this reason is illegal and pretty darn immoral! I've had no shows for 3 hour treatments, or rather a cancelation 20 mins before an appointment! It's part of the industry and people do forget or have emergencies etc, it's a fact of life, u can't penalise them for this??? Imagine if the doctors/ dentist etc charged u for every missed or late appointment? I've never I'n 15 years come across any one who actually wanted to follow through this threat with cancellations/missed appointments! I'm a bit shocked :-0 x

My dentist charges for no shows!!

Craig Keane
www.hculture.co.uk

 

[Matthew Taylor]

I don't get it? Why would u charge a customer for not turning up, surely that will loose u business left right and centre?? We all say there is a cancellation fee, to encourage customers to cancel I'n adequate time to refill the appointment! Taking their card details and keeping them on file for this reason is illegal and pretty darn immoral! I've had no shows for 3 hour treatments, or rather a cancelation 20 mins before an appointment! It's part of the industry and people do forget or have emergencies etc, it's a fact of life, u can't penalise them for this??? Imagine if the doctors/ dentist etc charged u for every missed or late appointment? I've never I'n 15 years come across any one who actually wanted to follow through this threat with cancellations/missed appointments! I'm a bit shocked :-0 x

Dentists DO charge you for missing appointments!
Each dentist in the last 3 towns Ive lived in charge if you dont show up!

 

[Lynne Baker]

It's not just dentists, but consultants, physios, osteopaths, counsellors etc.
Yes, life gets in the way sometimes but you know what - if someone lets you down at the last minute for a spurious reason, do you really want them as a client anyway?
If we start to professionalise the industry perhaps people will take it more seriously.

 

[Curly Bamboo]

I don't get it? Why would u charge a customer for not turning up, surely that will loose u business left right and centre?? We all say there is a cancellation fee, to encourage customers to cancel I'n adequate time to refill the appointment! Taking their card details and keeping them on file for this reason is illegal and pretty darn immoral! I've had no shows for 3 hour treatments, or rather a cancelation 20 mins before an appointment! It's part of the industry and people do forget or have emergencies etc, it's a fact of life, u can't penalise them for this??? Imagine if the doctors/ dentist etc charged u for every missed or late appointment? I've never I'n 15 years come across any one who actually wanted to follow through this threat with cancellations/missed appointments! I'm a bit shocked :-0 x

It is not a threat to charge a cancellation fee if the policy is explained to the client at the time of booking. Do you think it's fair that a client doesn't show up for an appointment? I don't think so. I understand that sometimes things get in the way so I am happy to waive the fee but where do you draw the line?

Clients who have a habit of being late/last min cancellation/no shows are not worth building a relationship with. It's a two way street, I do my best to be on time for their treatment and not cancel on them without ample notice, so why should I not expect the same back?

Recently a friend of mine offered to pay me a fee because she cancelled last minute on a Saturday. Now that is consideration and fair! We met half way, instead of a 100% fee I was happy to take 50%. She rebooked and had many more treatments.

I had another client forgot to turn up to an 1.5hr appointment. I even confirmed with her the day before. She automatically offered to pay the cancellation fee.

Restaurants also charge for cancellations. Some will take your credit card detail to confirm the booking.

 

[Serenity Beauty]

I just think it's not the way this industry works, we build a bond with our customers and s good relationship! U just said yourself u do ur best to be on time for ur clients! Will they be asking for money back for their wasted time if u are running behind??? Not trying to be argumentative but we are all entitled to our opinion x

 

[Lynne Baker]

I think there has to be mutual respect between business and customer, regardless of what the business is.
I don't think your argument that it should be different in our industry holds water at all, I'm afraid. HMRC, suppliers, borough councils and all the other institutions making demands on our income treat us no differently to any other business sector.

 

[Serenity Beauty]

Lynne that's a good point! I just feel that our clients look on us therapists as friends a little (even though we offer them a service and they pay us!) to start making this kind of demand from clients might be pushing it a bit! They are guaranteed not to come back, complain to everyone else and put off potential clients x

 

[taggyboy]

Thank you for all your replies on this post. I originally posted this in Jan 2011 after having some no shows/late cancellation (hour before appointment) over a very busy Christmas and New Year Period. As our salon is in it's infancy we needed to find a way to manage these clients. We are a small family run business so cannot afford to turn clients away and this is what was happening. That to me is an inconsiderate client and one I do not want in our salon.

I have done a lot of research on this subject and posted on a few other threads about the rules and regulations of holding card details.

When we opened in 2009 we had over 50+++ no shows. I suspected that some were other salon owners/mobile business in the area but obviously couldn't prove it. I'm not stating, in the least, that other salon owners/mobile business are this unethical, but business is business and we needed to put a stop to it.

A few clients came in and said other business in the area really didn't like us opening up. However, that's all hear say!!

I looked into taking deposits for treatments/service over a certain time limit but really didn't want to upset new or old clients.

Basically, my research found that you cannot write down any card details and hold/store/file them anywhere. You can take deposits over the phone and just enter the details into the card readers with the customer copy being posted out to the client for their safe keeping. Alternatively, they can pop in and pick it up.

I also worked for a call centre and we were never, ever allowed to take details down on paper of card details or put on a computer system but that may have changed.

As with all our cancellation/deposit/pay in full policy, we are flexible. We understand fully that every now and again, people do have to cancel for genuine reasons and this is where we are flexible.

We send text reminders to clients, we have installed a caller id phone and set up caller display with BT. Any witheld numbers are called back to clarify that it is a genuine caller and those clients do not mind and fully understand.

This is working for us, our no shows/cancellation have reduced dramatically. Any clients playing up just have to pay in full for future bookings. All done above board using our card reader.

I was told only hotels and spa's have authorisation pdq's and my own provider does not have this software, which is a shame!

Respect should be earnt both ways, we are professionals and should act and be treated as such.

Once again, thank you all for your feedback

:hug: