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Few beginner questions about payments

Hi,

Sorry for asking questions that are probably already answered in other topics but I just can't sort all those informations in my head...

 I have one apartment for rent. I take cash from my guest as I don't have ability to accept credit card.

My questions are:

1) What will happen if I choose to accept only cash and in polices I set that I want to charge guests card after "free cancellation" is over and set Creditcard od Paypal as payout method? 

This is contradictory to me as I will never charge my guest in cash as all of them will be already charged before arriving because of passing free cancellation period.

Also, if I choose paypal or credit card as payout method, how and who will charge guest? Will it do booking.com for me or they would just show me guests credit card number? Same question is for paypal?

 

2) What do guest in general prefer more when they book apartments: to pay with credit card or to pay in cash? Will setting one of those increas or decreas booking rate of my apartment, and what are good and bad things of each option?

3) Is it possible to set up booking.com to charge guest as Airbnb, and also to automatically deduct provision from that money they collect for me as it is too expensive for me to pay via bank transfer booking.com provisions? Is it possible to somehow keep money on booking.com and then transfer it to my account once when some limit is reached or something (as AirBnB is offering)?

4) What credit card processing tool (or how it is called??) do you suggest to use. Paypal here is not available in my country.

 

I am little lost in those payment related topics and just can't figure out what would be best to choose. Last night I thought that I will have no show and that inspired me to think about this as I was all the sudden aware that I could lost good amount of money if guests didn't arrive and I could do nothing about it. 

 

30 Replies

5
monet208

Whatever the cost geta a credit card machine as you will get fake bookings and fake credit cards as it will save you money

make sure you charge the guest as it will save you money by keeping your commission rate low

Do not have a short time cancellation policy as guests often cancel late

1 year ago
7
pibomarco

1. You can't set a PayPal as a payout method.

If you are talking about online payments by Booking.com, booking.com will colelct money and you will charge Booking's virtual card via your POS terminal.

2. Guest prefferes to pay with credit card. Owners preffers cash (avoiding taxes etc..)
Also geust preffers properties that accept only cash (so that they can cancel or not show up without a cancelation fee).

3. Payments by Booking.com

4. You need a POS terminal, which you get if you have a registered business.

AirBnB is more owner friendly regarding the payments etc. With other words Booking.com is more a transparent business.

1 year ago
1
Mokka

Thnx both for answering.

My problem is that I have no way to get physical POS right now as I am renting as individual as in my town it is not regulated yet and I can't register as business (I know it is strange but it is like that).

Only solution for this in my opinion is to use PayPal in a way that I take guests credit card information and then manually charge it on my apartments web page "like guest did it". But I am not sure is booking reveling guest credit card information to me so I can use it in that way or it is not doing so? (It seems to me bit risky to show just like that credit card information to hosts but again how else can you charge it if you don't have physical access to card - which you will not have in case of no show)

Will this work or I am missing something? I would let guests pay in cash if they arrive but in case of no show I would charge credit card in this way.

At the moment I can't see guests credit card information but I am not sure if it is temporarily or permanent.

I like option "Payments by Booking.com" but is it available to all users or it is location dependent? I don't see that option anywhere in my extranet and don't know how to activate it.

1 year ago
7
pibomarco

We as a host, can see the credit card details of the guest. It's our obligation to keep those data safe and secure. Also I think you will not be able to use credit card via PayPal in such way due to security reasons.
The only way I see as possible is, that you send a PayPal invoice to the guest, and then the guest settle the invoice. But not all would be comfortable with this specially if they don't have PayPal account.
Also on PayPal you must have registered business if you want to receive more then 2000€ per year (at least in my country).

I would suggest you that you mark under policies that deposit or payment is required via bank transfer after the booking. You then contact the guest with your banking details.

Without POS Terminal or without Payments by Booking.com you can't do much about it. Yes it is location depended (you must contact Booking.com via extranet if they can enable this feature for you).

1 year ago
1
Mokka

Thank you for advice about contacting booking and asking for Payments by Booking.

It would be win/win combination for me as I would get paid every time and I would not have to send provision to booking via bank transfer which is expensive in my case.

But I am not sure if they will or can enable it just for me. There is probably reason why it is unavailable for my location....

If everything fails, I would still have this PayPal option that I described as I feel that it will technically work (I would click on "Buy it now" button on my apartment web page and enter all credit card information same as would guest do it if he was there), but that would be probably easily refunded in case of dispute as it would look suspicios to paypal... Maybe I would do it only in case of big loss no shows... But still not sure...

Asking for deposit or bank transfer is not option in my case as I am outside of EU and it would be too expensive to guests and I think that they will not accept that kind of booking especialy as they can book elswhere without all those complications (I am not sure how others are dealing with this no shows but I heard that it is big problem for lot of hosts in my town).

1 year ago
7
pibomarco

Where are you from?

You ment using PayPal for no-shows? I also have a PayPal button on my webpage, when the guest want to pay via PayPal as a guest, there is quite a few more data that he need to put in, not just the credit card details.

I have two properties listed on Booking.com. On the first one i have activated Payments by Booking.com and on the other property I personally take the payments here at the property (I also have POS terminal).
Just today I received a No-Show for 300,00€. Wanted to charge their card, but it was declined. Although their credit card was valid on the time of booking. What can I do about it? Nothing. :)
I think in 95% cases if the guest cancels and doesn't show-up they emptied or canceled their credit card. The only solution to avoid this is taking deposits upfront. Now you must decide what is more important to you.
So even if you have a POS terminal you are not 100% secured if not taking payments upfront. And even if you do, the guest can contact their card provider and tell them that they didn't authorize the transaction, and the money will be refunded to them and taken back from you.
I would say if we choosed to have less strict policies, sometimes we have to suck it up with some late cancelations and no-shows. Not worth of stressing..

Regarding bank transfer. Try www.Payoneer.com if you are eligable. You get EU account, mastercard debit card, you can pay and receive money globally.

1 year ago
8
Leandri Klopper

Hi there,

I'm not even going to pretend to know much about the International Payment Options ect. but what I can tell you is that I have selected the policy on Booking.com where people need to add their Credit card details onto the system when they book. I used to then contact the guests and ask if I can process the card (we also have a POS terminal) and mostly the guests agree to it. The rest of them ask me for banking details and does an EFT payment, and sends me the proof of payment.

When I removed the restriction where guests HAD to provide their credit card details when making the booking, I got a lot of bookings almost immediately. But out of those bookings, I was able to come into contact with maybe two of them to provide banking details and ask for payment etc. So it became Much more work trying to get payment and in the meantime the unit they booked was blocked off for them. So should I not be able to get a hold of them for payment, the unit might stand open and I would lose money.

It's a delicate balance, so I hope you succeed!

1 year ago
1
Mokka

It seems that I am stuck with "cash only" as pay by booking is unavailable at my location and also I can't any online credit card processor that is available for me...

I have payoneer account and I am waiting their Mastercard to arrive (I registered via AirBnb). I also see that I have EU account, but could I get in trouble by getting money on that account. It is registered in Germany and maybe they could ask me to pay some taxes or something because of that account. I am not sure if it is working like that but would not like to get in trouble when I tries to enter EU.

For now I will stick with cash as it looks like it is my only option and we will see in future what will happen.

Also is it possible to see guests profile such as how long he/she is on booking and how many reservations they have made...

1 year ago
8
Leandri Klopper

Hi there,

Best of luck with the payment options!

That's a definite no, we as properties have no access to view a guest and their profile on Booking.com. Booking.com is very strict on their privacy policies. I can't even receive a guest's ID nr or passport nr via the extranet messages, it gets blocked. If you want to question the trustworthiness of a guest, perhaps try asking Booking.com if they can perhaps get something like that going.

Keep well.

1 year ago
7
pibomarco

Who are "they"? Your local officials? If you are saying you can not register a business because it is not regulated etc you are basicly saying that you are selling your units without invoicing and paying taxes?

At the moment there is some prevention going on, under the policies

"Guest requirements beta"

1 year ago
1
Darlingst3

I have visited this forum a couple of times. I find the poor language very frustrating and consequently the forum is of very little help to me. I would rather just contact someone at Booking.Com for assistance.

1 year ago
7
pibomarco

Well who is stopping you? Contact them via extranet or make a call.

1 year ago
1
Matz1520

At first it is confusing but i sorted out the issue by opening a normal bank account & Boooking.com pays on the 15th of every month less their commission.

1 year ago
1
Admin

I wouldn't give up on the forum yet. Although not all posters have English as a first language, there are many useful tips and solutions available. You should check out more topics. We are a very small (four bedroom) property, and the forum is a helpful way of connecting with others in our business. Lots of great advice and support.

1 year ago
1
Rita

Person to person payment via the bank works well for us. It is easy and cheap. We do not like cash payments and it is seldom or never that we need to use the cash payment route.

1 year ago
2
Adagio Accommo…

I have tried only 100%cash option, than 30% Advance payment on the account and 70% in cash uppon arrval, and has finaly landed on Collecting Payment by Booking.com.

This is realy relaxing way because all concerns regarding creditcards are on the side of Booking and they perfotm this really well.They Compensate the amount of Commission so I dont have a bank transfer expence which is 10EUR at my place (Croatia).. Its true that you receive money with delay, comparing with cash payment, but its worth the pain.

1 year ago
2
Malapascuabudgetinn

I think I have to work on credit card system application for POS terminal in our nearest bank. This is the best option for guests who doesn’t bring enough cash in the island.

But other options I have is via my paypal they can pay through my paypal account.

And majority of payment method is through cash payments upon arrival.

I have learned great lessons for no show, since then I tried communicating to guests for prepayment or at least if they’re coming that way I can advice booking to open the rooms for others to booked!

1 year ago
1
Michaelwalsh

As a new owner and long time user of bdc as a booker I am concerned that it's way of working works just on behalf of the booker. The owner has to take who ever reserves a room and cannot determine the integrity of the person or group beforehand,

I misunderstood the availability and rates calendar and believed the only available dates were covered by the "Set Period" in the List view section. I had no idea that the available dates were open ended to Dec 2020

Our pricing was based on current months usage and we also had no intention of providing lettings past September. Imagine our horror when there was a booking reserved to take place over New year at low rates, and we will not be around to service the room.

We have been informed by bdc that we will have to find alternative arrangements at our expense for the difference or BDC will invoice us the difference if they have to find accomodation.

We have no right to cancel at all .

We must have access to information on bookers and have the right to cancel if we wish to for whatever reason by giving fair notice to the booker. We have lives lives too, could be illness, family crisis etc.

The jury is out and we will decide whether to continue with bdb or not?

Michael

1 year ago
2
Malapascuabudgetinn

Hi Michael, in cases like this. You can message the client directly so they can cancel it on their own. For dates that you are not around and once cancelled by rhe guests just block it in your booking system.

Sometimes if the reason is having lower rates on peak season because they booked earlier, I will immediately email them. I am sorry, just cancel the booking coz I have overbookings I have no room allocation for you. I am so sorry for the inconvenience but I believe at this time if you cancel this one no charge and you can still find available rooms on booking. So when it’s cancelled I can open it for higher rates or temporarily blocked it in the system.

For the past 3 years that I have been running my business I know the fluctuations of sales and noted the super peak season. I manually changed the price in my channel manager or booking in your case 25-30% higher than usual. I don’t double the price coz I have to consider my facilities and accomodation otherwise it would go back to bad reviews. I am careful with price adjustments. Hehe

1 year ago
7
pibomarco

Michael it's nothing personal it's just business. You accepted Booking's contract. We were all in similar situation before. I beleive next time it won't happen again because you'll be more carefull. Malapascuabudgetinn gave you some good pointers.

1 year ago
1
Matz1520

BDC, bends only towards the guests, according to them the hosts are (mostly) always at the disadvantage. Unfortunately (to an extent) the site brings in a lot of holiday makers so the hosts do not have any say on any matter. Rules are there in black & white & BDC does not bent a bit to accommodate ITS CUSTOMERS, that is us the hosts, without us BDC is nothing, but if you don't like it move on or follow. I've had similar issues with the minimum nights booked, for us its a min of 3 nights, but i had occasions when bookers booked for one night only! Now every now & again i go thru the calendar manually to check, although the settings are done globally & for an eternity. BDC does not accept software glitches either!!.. lol its always the fault of the host. So its just a take it or leave it choice.

1 year ago
3
Weigelt

We've run our B&B for 16 years without accepting credit card payments. Yes, we have lost when guests cancel or don't show up, but it kept things simple. Now, Booking.com has a very handy pay online system in place. We've switched and I like it.

1 year ago
1
Alinshrah

I am a novice in this field and my first (and only one) booking was a no-show. Booking.com advises me that My property is a "standard business model" (Pay to the property).

What is the other business model, where Booking.com collects the payment from guests and pays the property owner? How to upgrade a Standard business model to that type.

11 months ago
9
M Adamopoulou

The pay online system works very well for me too.

11 months ago
7
pibomarco

Alinshrah you must contact Booking.com that you would like to activate "Payments by Booking.com" (if this feature is available in your country).

11 months ago
1
Nilanthiknd

Please be informed our guests from India booked on the 3rd November, 2018 did not arrive. They did not cancel the booking before the date. Please be good enough to not to charge commission for this booking. your co-operation will be greatly appreciated. Thank you.

11 months ago
9
M Adamopoulou

Nilanthiknd you must contact booking.com through your extranet and send a message or give them a call. Here is only booking forum. Good luck

11 months ago
1
Ladygrace1959

need help.. does anyone here knows how to cancel reservation?

11 months ago
7
pibomarco

You can send a request to the guest to cancel the booking in extranet. But the guest must accept your request.
Nilanthiknd you should have marked booking as no-show in extranet.

11 months ago