Until recently, I have been a strong advocate of requiring that vacationers send rental funds by check rather than by credit card. I was concerned about having to pay extra fees and daunted by having to learn how the PayPal process works. Plus, I had never, in 30 years of renting, lost a booking because I didn’t accept credit cards.
But an eleventh-hour booking last year and learning more about PayPal have changed my stance a bit.
I still prefer to receive checks for all advanced bookings, but having a PayPal account does allow me to accept last-minute and international bookings more quickly and easily. And I was surprised to learn that not only are some transactions free of fees, but if fees are incurred, I can insist that they be paid by my guests, or we can negotiate and perhaps split them. Here’s what else I learned:
There is no fee for you to set up a PayPal account or to maintain it annually. Just go to their website (www.PayPal.com) and set up an account. (It’s pretty quick and easy.)
Fees for domestic payments:
If a payment is made by a credit or debit card, there is always a fee. It is possible, however, for a domestic payment to be free of fees depending, for example, on how the transaction is submitted by the vacationer and if the payment is made using a money transfer. (For further clarification, check with PayPal online or at 888-221-1161.)
For domestic transactions, the fee for credit/debit card payments is 2.9% of the amount of the transaction, plus 30¢. So, for example, if you are sent $2000 by credit card, the fee would be $58.30.
Using PayPal can be very helpful for receiving funds from international vacationers. The fee is higher (3.9%), however, and exchange rates also apply to convert the currency to US dollars. Again, check with PayPal for the particulars. Also, read our other blog posts about International Bookings and Handling Payments from Canada.
Prior to accepting a booking using PayPal, you should be very clear with your vacationer about who is responsible for any fees. Ideally, it should also be stipulated in the lease you send this vacationer, along with any other fees that they are responsible for.
Do you accept credit card payments as well as personal checks? Do you have any other recommendations for taking rental payments?
For more information, listen to our latest podcast that covers everything you need to know about PayPal and electronic payments.