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Whenever a new booking is received with credit card guarantee you should request pre-approval for the cancellation fee from the CC vendor in case of no-show.
The card used must be under the guest name OR chargeback received if booked by a Travel Agent.
If the credit card is invalid you should send an e-mail to the booking source requesting new credit card detail under the guest name.
Best practice is:
1. The no-show fee should be charged as possible with supporting documentation to the bank including a letter explaining why the no-show fee applies together with a copy of the reservation.
2. When raising the credit card sales draft for the fee to your bank; include a copy of the reservation together with copy of the 'guarantee' terms and conditions. Simply write 'No Show' on the signature panel of the sales draft.
Some bank branches need education on these processes that are clearly explained in their merchant manuals. It's important to note that during the guarantee process the CCV number should not be collected; this is not allowed by the credit card providers compliance rules. Credit card user manuals all clearly explain how to handle No shows. See bottom of page 534 of a 2013 Visa Card operator manual by downloading it here.
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