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I hang the sheets on the line and fold them carefully when bringing them in. Like the previous person I also only just iron the top of the sheet that shows and tuck it in really tight to remove any creases. The bottom sheet is fitted so stretches tight and isn't wrinkled.
I had exactly the same experience. I had one guest refuse to pay as I didn't take CC and another who never showed up so I missed out on a night income.
I send a template explaining I don't take credit cards and ask them to pay in cash on arrival or direct deposit prior to their stay.
I also have an info folder in the room explaining that booking.com only use cc for identity verification and they cannot pass payment on to me. I have all the charges written down and details of the nearest ATM. That way even if they haven't read their email properly, it is all there in B&W in their room. I haven't had problems since then... (Though that doesn't solve the non payment for non shows issue).