Handling Foreign Currency Exchange / Travellers Cheque

• All Front officeFront office is the communication; accounting; and service center of the hotel staff and Cashiers should be familiar with the procedure for ForexTerm 'forex' stands for a foreign currency exchange/currency conversion. This is a facility provided... or exchanging currency.
• Always wish the guest as per the time of the day.
• Currency Exchange or Traveller’s cheques exchanged facility is only provided to the in-house guests or guests with reservation.
• Hotels are normally not authorised to exchange currency other than the local currency.
• Most hotels won’t allow currency exchange facilities for passers-by guests.
• Immediately offer the guest the exchange rate and get the Front office cashier to assist the guest.
• Ask the guest how much foreign currency he would like to convert.
• Depending upon the amount mentioned by the guest, provide the guest with an estimated cash out.
• Use a Calculator for the estimated calculation and offer the guest for verification.
• After the guest agrees to the foreign currency calculation, collect a sufficient amount which needs to be converted.
• Count the foreign currency using the fake note detector or check the currency/traveller’s cheque manually.
• Open the Currency Exchange module on your front desk software or hotel software.
• Enter the guest details like guest name, room no, passport no etc. (Normally on the front desk software as soon as you enter the guest room number all required guest details will be populated automatically)
• Enter the amount collected from the guest as ‘We Buy’ and select the corresponding currency to exchange.
• For Example: If the guest wants to exchange $100 then, Enter 100.00 under the We Buy amount and Currency as ‘US Dollar’
• The ‘We sell’ currency is always the local currency.
• Commit the currency exchange process and print the Forex receipt.
• Get the guest to sign on both the copy of the forex/currency exchange receipt.
• The front desk cashier should also countersign the receipt.
• Count and hand over the money in local currency to the guest.
• Place the exchange receipt inside an envelope and hand over the same to the guest.
• Wish the guest thank you (Thank you, Mr.Roger, Have a nice evening) after the currency exchange process is completed.

Other Points to note during the exchange of currency:

• Always convert the currency to local currency before taking in a room deposit.
• Foreign currency is not accepted for room deposits and the same needs converted to local currency. (As per the hotel’s policy)
• Key in a reservation comment and traces in the system or guest folio to indicate that the room deposit has been collected.
• Also to put down the receipt number that was issued to the guest.
• The traces will help to catch the attention of the receptionist who’s doing the extension of stay for the guest the next day or the day that he’s supposed to check out.
• Even if they overlooked the comment, the traces will give a pop-up to the front desk staff to indicate that the guest paid a deposit.
• The above will notify the receptionist to collect a sufficient deposit before extending the guest’s stay.

Important things to note while exchanging Travellers Cheques:

• Only accept the traveller’s cheque / TC while watching the customer sign on space provided at the left signature line.
• Do not accept the pre-signed traveller’s cheque.
• Take the ID proof from the guest and match the signature with the signature done in front of you.
• Closely inspect the surface behind the signature for signs of smudged or missing microprinting or brown discolouration this indicates that the signature was erased etc.
• Hold the cheque to light or bright window to reveal a watermark image on the face of the cheque.
• If there is no watermark then it’s a clear indication that the same could be fake.
• Like currency, there would be a holographic thread running through the width of the cheque while you are holding it to the light.
• The front office cashier should be trained in checking and verifying traveller’s cheque and appropriate regular refresher training need to be arranged.
• Anytime you are unsure about a traveller’s cheque, contact the traveller’s cheque issuer toll-free number directly for cross verification.

Training Summary questions:

Q1. Who is responsible for foreign currency exchange?

Q2. Explain the process for foreign currency/traveller’s cheque exchange in the hotel?

Q3. Can we accept foreign currency for room deposit or advance?

Q4. What ist he process for exchanging traveller’s cheque?

Q5. How to verify if the traveller’s cheque is genuine?

SOP Number: Front Office SOP – 58
Department: Front Office – Cashier
Date Issued: 12-Aug-2019
Time to Train: 45 Minutes