Daily Archives: March 2, 2009

From a traveler’s perspective, one of the big questions and concerns about vacation rentals is “how do I pay.”  Asking a guest to send a check in the mail can often cause users to feel uncomfortable about their reservation and/or delay payment.  Waiting for checks to arrive and clear the bank can also cause management challenges.  

By securely accepting credit cards and electronic payments, you can process payments immediately and verify that the payments were received within just a few days.

An easy and affordable payment solution – PayPal!

Some vacation rental listing services offer the ability for owners to accept credit cards but charge you an annual subscription fee.  PayPal, an industry-leading payment solution that many sellers on eBay have used to accept credit cards for years, charges no set-up fees.

How it works:

-  Create a free Business Account on PayPal.  Your Tax ID number is simply your Social Security number.  You can create an account directly at www.paypal.com.  

-   Verify your account.  An easy process that allows you to obtain a small verification code.

-   You can now email invoices to guests through PayPal, which will allow them to pay by credit card. 

-    PayPal will process the credit card and credit your account minus a small transaction fee.  It’s that easy.

How much does it cost?

There are no costs to set-up an account and withdraw funds.  PayPal makes money by deducting a transaction fee each time someone uses a credit card to pay.  Transaction fees range between 1.9% to 2.9% (depending on transaction volume) plus $0.30 per transaction for domestic transactions.

Therefore, if your transaction fee is 2.5%, you will be charged $25 for a $1,000 transaction by PayPal if the guest pays by credit card. 

If the transaction fee seems unattractive, many renters will offer their guests two options:

Pay Via Check = Rent + $0 transaction fee

Pay Via Credit Card = Rent + 2.5% transaction fee

For many users, the increased peace of mind paying via a credit card is worth a small additional fee.   Even if a guest prefers to save the extra $$ by paying via a check, the fact that you offer a credit card option helps them feel more comfortable with the transaction.

PayPal is available at www.paypal.com.