How to get cheap holiday rentals

[Normandy Cow]

LV - how do you accept credit cards? If it's through the PIMS system, is this not via Paypal anyway? (or have I got the wrong end of the stick?)

[kendalcottages]

So why are you so reluctant to accept cards?

I am maybe in a minority here, but I am reluctant to accept them for the following reasons - in no particular order:

1. I have just one property
2. our guests almost always seem happy to do a bank transfer (and very occasionally prefer to pay by cheque)
3. it's more costly for us to take payment by this method
4. around 90% of our guests are from the UK anyway where a bank transfer is straight forward and usually goes through within one working day
5. I am concerned (perhaps without justified reason, I don't know) about the possibility of chargebacks

[la vache!]

LV - how do you accept credit cards? If it's through the PIMS system, is this not via Paypal anyway? (or have I got the wrong end of the stick?)

Hi NC, I accept credit cards through a system called Payboxmail and my bank, which works a little like Paypal in that I can email the invoice and customers pay online via a secure server, but I pay much less commission (0,45% instead of 3.6% charged by Paypal). So I won't be using the online booking through PIMS.

[e-richard]

4. around 90% of our guests are from the UK anyway where a bank transfer is straight forward and usually goes through within one working day

To just add to that and clarify a point made by casasantoestevo in the original question.

bank transfer is straight forward and usually goes through within one working day or less, and costs nothing for the guest or owner.
Same is true for EU to EU bank transfers.

I do feel that the media articles warning against bank transfers are very unfair (erroneous even!), but may well emanate from the VR industry in the US, where the rules are very different.

[pambon]

So why are you so reluctant to accept cards?

I am maybe in a minority here, but I am reluctant to accept them for the following reasons - in no particular order:

1. I have just one property
2. our guests almost always seem happy to do a bank transfer (and very occasionally prefer to pay by cheque)
3. it's more costly for us to take payment by this method
4. around 90% of our guests are from the UK anyway where a bank transfer is straight forward and usually goes through within one working day
5. I am concerned (perhaps without justified reason, I don't know) about the possibility of chargebacks

KC, shake hands; these are my reasons entirely.

(Whereas 'just one property' could be a large villa accommodating 12 or 16 pax or more, mine is an apt for two, mostly Brits.)

[Mouse]

I do feel that the media articles warning against bank transfers are very unfair (erroneous even!), but may well emanate from the VR industry in the US, where the rules are very different.

I agree. 9 years in and every payment made this way and no hitches.
It's very tricky and expensive here to get a CC facility, so not worth it for us unless the market demands go that way. If anyone asks (I've had about 4 requests in the past) I always ask is it a security or budget issue. Each time it has been budget...in which case I've allowed them to spread payments or held the period for a little longer whilst they gather the money in from their group.
So far, touch wood, I've not lost a booking. But that time may come.

Mouse
x

[CSE]

Well it after a bit of pushing I am glad to see more about your point of views on this. Thank you to those who have answered.
Some further thoughts.

.............bank transfer is straight forward and usually goes through within one working day or less, and costs nothing for the guest or owner.
Same is true for EU to EU bank transfers........

Is that correct? Our experience is that it can take anything up to one week. Time does depend on the bank sending the money and it is not free to the customer. One of our Spanish banks also charges fees when it is not a Euro transfer.

........
3. it's more costly for us to take payment by this method
4. around 90% of our guests are from the UK anyway where a bank transfer is straight forward and usually goes through within one working day
.......

Point 3 Yes but this must be considered more convenient. Some folks use the CC to spread the coast of their vacation. Not accepting one does limit your market somewhat.
Point 4. Again this does seem to be limiting your market. Whilst you are perhaps more than happy too only have British vacationers you have expressed on this forum in the past a need to look at expanding the business and sometime fill those holes.

They are convenient and cheques can only be used in the country of origin. This world moves on and the likes of traveller cheques are disappearing fast. Vacationers these days bring their CC for use whist abroad.

[Hells Bells]

I do remember in the dim and distant past that some past members of LMH were scandalised that anyone might wish to pay for a holiday with a credit card, and that guests who couldn't afford to pay in cash weren't the sort of guests they would want to have staying at their accommodation. They were also horrified at the thought of paying the fees involved. I incorporated them into my rental charges from the start.

[la vache!]

My payment system is for debit as well as credit cards...not sure if the charges are different, but I know I'd rather pay by debit card. Athough I don't have a choice in France as the credit cards issued by banks are all in effect debit cards, with the money being debited immediately or occasionally at the end of the month. I get hours of English lessons by trying to explain how UK credit cards work. And how personal high street banking is free

[cambalala]

...moneysavers are discouraged to use Paypal because it offers no insurance against non tangible goods holiday rentals.

However, if the source of your paypal funds is a cc, you are still offered the same protection by the cc.companies and banks. Surely?

[newtimber]

If you have a few properties, CC is actually cheaper than Paypal. The reason for this is that the standing charges are higher, but the transaction costs are much lower. I find a lot of people pay by debit card (20p + 25p to online gateway) even if they can pay by credit card at no additional cost to them. This reduces the average transaction charge quite considerably.
Yes, a few people do pay by bank transfer (free), but if people are given the choice, they prefer to pay by card because of the security it offers. If you make a mistake entering the payee account number, it is a nightmare trying to recover your money.

[ccazes]

...moneysavers are discouraged to use Paypal because it offers no insurance against non tangible goods holiday rentals.

However, if the source of your paypal funds is a cc, you are still offered the same protection by the cc.companies and banks. Surely?

If you pay by credit card via Paypal, Section 75 protection won't apply, as technically you're not using the card to buy the goods or services, but to charge a Paypal account.

I wonder if this same logic would apply when paying by CC on a VRBO/Homeaway website as you are not using the owner's CC set-up but Homeaway's.

I agree that bank wires get a bad rap. 9 out of ten renters I have are more than happy to pay by wire. Even those who are doing it for the first time and from abroad. One guest told me he got a better exchange rate through his bank than his credit card too. When paying by CC you do not know in advance what the exchange rate will be and often there can be a commission added on top. I also accept Paypal but ask the guest to pay the charge rather than integrate it into my costs as they are in such a minority, it does not seem fair to add 3.4% to my prices.

I have to add that I have a very small operation so it would be too onerous for me to have my own CC set up. I could not generate enough business to qualify for a reasonable rate per transaction. Obviously this is not the case for others.