How to take payments from Germany?

[HopHead]

Hello.

I'm fairly new to the letting business, and apologise if this question has been asked before. I have been letting out a cottage in Cornwall for the last year or so, since inheriting it. I have just received an enquiry from someone in Germany, my first one from abroad, and am wondering what is the best method of taking payment. All guests so far have been from the UK and have paid either by cheque or online, but I don't know if either of these are possible from Germany (e.g. do they still use cheques?). Thanks in advance for your help.

HopHead.

[Marks]

Bank transfer is one option. You will need to supply your IBAN (international bank account number) and SWIFT code. Your bank will be able to help, mine are printed on my paper statement.

[Yorkshire Lass]

Be aware with an international bank transfer that your guest will have the option to pay both his bank charges and your bank charges so you could suggest that if the payment is being made this way that he will opt to pay all charges (otherwise you will find a deduction is made by your bank for your charges and if you're very unlucky and the guest has put all charges on to you that you are also paying his charges).

[booboo]

Pay-Pay may be cheapest method for you both.

[Annew]

Hi HopHead & Welcome!

I have quite a lot of German and Dutch Guests (they do like the westcountry!).

I have a clause in my terms and conditions that ensures guests paying by bank transfer must bear all transfer costs, be it paypal or Direct Transfer. (PM me if you'd like the clause)

I take a security/damage deposit in cash on arrival from foreign guests and refund on departure - but I am on site.

PS: You lucky person having a place in Port Navas - one of my favourite haunts in my younger days

[Jenny C]

We took a booking the other day from German guests who planned to pay by bank transfer. An English friend of theirs phoned yesterday to say that he would be paying the deposit by bank transfer on their behalf, as the charges in Germany were apparently extortionate.

I'll remember this if we have German guests again and consider paypal as potentially a better option.

[Annew]

The charges in germany are no higher than for a sterling transfer to a euro account. Transfer charges are lower than paypal in my experience. (rececently £33 in total quoted by paypal for one guest, £23 in total for bank charges at both ends)

But ... I do think it depends on the bank at each end.

There are forex accounts that you could use - somewhere on LMH there is a thread about this. I use XE Trade sometimes as they can be cheaper occasionally.

[Margaret]

Annew is right, bank charges for transfers in sterling are the same as for Euros i.e.peanuts and online transfers are easy. And cheques are virtually unknown here - special request only - I have used a cheque once since 2004!

[Zur Alten Weinkelter]

I can also agree with Margaret, I can transfer from my German account to the UK for a very little charge if a charge at all! And German’s are used to direct bank transfers, internationally just supply your German guests with you IBAN and SWIFT /BIC code
I can even do an international transfer at the ATM machine & it will show in the UK the next working day. A German can ask their bank to draw a cheque for them but the charges are quite high and it is not the norm, German’s pay to have their bank accounts personal or business and you have a table of charges so you know what you are being charged for and have more control over your transactions so your German guests now or in the future should not have a problem paying for their stay by bank transfer as long as they have your details

I have the problem the other way with UK guests grumbling if they have to transfer into a German account as most UK banks charge an “ admin fee “ usually £20 per transaction these are the same guests that during their holiday use the ATM even with their credit card virtually on a daily basis and don’t even think about the charges but grumble when they have to pay the bank charge to pay for their stay as if I am keeping the charge myself and it is my fault as a Englander living and running a business in Germany ….Hmmm and I should accept £££ as in am English ….. Maybe it is time to dig out the old tobacco tin with the shillings & Ha’penny’s 2 (as she whistles rule Britannia)

[Margaret]

We always, always work in Euros regardless of the nationality of the guest. They are going to have to spend Euros while they are here I think?

[Hells Bells]

I've had the why don't you accept sterling thing too. The majority of my expenses are in euros, so why would I?

[holidayloverxx]

I don't mind a couple of bookings a year in sterling as my insurance is in sterling, as well as a few other expenses, e.g. website but I agree I much prefer euros.