Types Of Account Settlement: Quiz!

A guest may use more than one settlement method to settle his or her account for various reasons. One possibility is that the guest is traveling on business and needs to separate business expenses from personal expenses. In this case, the guest may charge business expenses to a direct bill account and pay for personal expenses with a credit card or cash. Another reason could be that the guest does not have enough credit available to cover the entire bill, so they choose to pay a portion with a credit card and the remaining amount with cash.

When a guest settles with a credit card, the account balance goes to the credit card account in the city or nonguest ledger. This means that the payment made by the guest using their credit card is recorded in the ledger specifically designated for credit card transactions. This ledger keeps track of all credit card payments made by guests and helps in reconciling the hotel's financial records.

When a guest settles their payment in cash, there is no need to keep their credit card voucher as it is no longer relevant. Destroying the voucher ensures that the guest's credit card information is not stored unnecessarily, protecting their privacy and reducing the risk of potential fraud or data breaches. Giving it back to the guest or keeping it may lead to confusion or potential misuse of the credit card information.

The responsibility for collecting a direct billing lies with the hotel. This means that the hotel is responsible for collecting payment directly from the customer, rather than through a credit or debit card company, bank, or collection agency. The hotel will typically invoice the customer for the charges incurred during their stay and follow up with any necessary collection efforts if payment is not received.

Check-out procedures typically require guests to sign a voucher or folio for settlement methods such as credit card payment, direct billing, and combined settlement methods. However, cash payment in full does not require a signature on a voucher or folio, as it involves immediate payment in cash without any further documentation.

Guests need to convert their foreign currency before paying under the settlement method of cash payment in full. This means that guests are required to have the full amount in local currency in order to make the payment. Unlike credit or debit card payment or direct billing, cash payment in full does not allow guests to use foreign currency directly for payment.

Cash payment in full does not transfer a guest's account balance from the guest ledger to the city ledger. When a guest pays in cash, the payment is considered final and does not involve any transfer of funds between ledgers. In contrast, credit card payments, direct billing, and combined settlement methods involve the transfer of funds from the guest ledger to the city ledger to settle the guest's account balance.

The correct answer is "Cash payment, credit card, direct billing, combined settlement method." This answer accurately lists the four types of account settlement: cash payment, credit card, direct billing, and combined settlement method.