Years ago most vacation rental owners waited for a check to come in the mail and or a wire-transfer. Times have changed as credit cards have become the norm for processing most transactions. In general potential clients feel more confident when they can pay with a credit card because credit cards provide more protection from fraud.

Accepting credit cards can give you a bit of an edge over listings that do not accept credit cards. In addition, by accepting credit cards, you can eliminate the “HOLD” period by accepting payment immediately. In addition, you can add a clause to your written agreement authorizing damages to the property or contents to be charged to the card on file. Of note, be sure to document with photos and text as the guest may “contest the charge” and complain to their credit card company.

Concerning credit cards, consider the following:

1) Merchant Fees: Each card issuer has a merchant fee which varies. Your credit card processor can advise and fees are negotiable.
2) American Express: In general fees charged by American Express are the highest; however, the demographic of the American Express card holder is attractive to those renting deluxe and luxury homes.
3) Your Bank: Consult with your bank concerning a merchant account. This should be your first call as set-up and maintenance may be easy and cost-effective.

Checks: some clients may wish to send a check and this can be an advantage to you as you can avoid the merchant fee. Be sure the check clears and the money is in your account prior to arrival. If time is short, call the issuing bank, provide the account number and ask if sufficient funds are available. The check may still bounce, however, calling the bank can provide additional piece of mind.

Wire-Transfers: This is an opportunity to have funds within hours of a reservation. However, by providing your bank’s routing number and account number, you run the risk of fraud. We STRONLY SUGGEST you set up a separate account AKA “the receiving account” for just receiving proceeds for vacation rentals. Once the monies have been wired to this account, immediately transfer to one of your personal or business accounts (never provide those account #’s to anyone). Just leave the minimum amount on deposit to keep the account open.