Low Cost Vacation Rental Payment Processing
A vacation rental payment processing account is a specialized bank account that allows vacation rental companies to collect credit and debit card payments from guests and members. This merchant account works as a bridge between the vacation rental website, the guest, and the payment network. A good quality vacation rental payment gateway provides efficient transaction processing and quick movement of funds from the guest’s account to the vacation rental business’s bank account.
Understanding High Risk Vacation Rental Payment Processing
Sometimes, the vacation rental industry is considered high risk by merchant acquirers, which are the financial institutions or banks that process credit and debit card payments. There are several reasons behind this, with the most prominent being high chargebacks. Many vacation rental companies have used pressure tactics to motivate people to sign up for long-term vacation rental packages. We all know that pressure sales result in returns, disputes, and chargebacks. The vacation rental industry is satisfaction-driven, and when guests and members are dissatisfied with the property or the hospitality, it can trigger disputes and raise chargebacks.
Vacation rentals are mostly seasonal, meaning that the merchant acquirer working with the vacation rental company will not have regular business. In simple terms, during the peak season, the merchant acquirer will process a higher transaction volume, but in the off-season, this transaction volume will be very limited. This is not favorable for processors. Credit card processors prefer to work with merchants from industries that bring in business throughout the year. A massive rise or a solid drop in overall transaction volume triggers credit risk.
Additional factors that make credit card processing a difficult task for vacation rental companies include last-minute cancellation policies, fraudulent transactions, and complexities in complying with government regulations in different locations.
Due to all these factors, only high risk payment processing companies support this industry. They do this by implementing stringent underwriting, proactive monitoring of the account, and utilizing various techniques for chargeback and fraud reduction.
QuadraPay is vacation rental friendly. We have been assisting merchants from various travel related verticals, like travel clubs, vacation rentals, timeshare, travel agents, corporate travel companies, since 2016. Ask us for a quote and visualize the potential savings.
Types of Vacation Rental Payment Solutions.
According to Grand View Research, the American vacation rental market is expected to reach 18.58 billion US dollars by the end of 2024. Skyquest Research predicts that the global vacation rental market will reach 119 billion US dollars by 2031. The potential of this market is enormous, and it is important for all players to ensure that they do not miss any opportunity to generate sales. For this, it is crucial that vacation rental companies offer the highest quality payment solutions to customers to achieve better growth. Let’s look at some of the most common payment solutions that we offer to vacation rental companies in the US, Canada, the UK, and other European nations.
Online Vacation Rental Credit Card Processing:
With this solution, vacation rental property owners can accept credit card payments on their websites or booking platforms. It integrates with the website through an API. Our solution is compatible with various website platforms commonly used in the vacation rental industry. Some of these platforms include PHP, ASP.NET, Laravel, WordPress, Magento, Zen Cart, and Joomla, to name a few.
Vacation Rental Credit Card Terminals
Many vacation rental companies accept in-person transactions. For this, we provide retail credit card terminals. Vacation rental companies can use these terminals at their office, property, or even at event sales locations. These terminals are easily integrated with various POS systems. Owners can accept all types of credit and debit card payments through the terminals. They can also accept mobile wallet payments like Apple Pay and Google Pay. If guests prefer to make payments by tapping their cards, then that is also possible.
Vacation Rental Mobile Credit Card Processing
This is a supplementary payment solution that many rental companies use. The difference between a mobile credit card processing terminal and a conventional terminal is the size and mobility factor. Mobile credit card processing terminals for vacation rental companies are primarily used to accept on-the-go payments. Vacation rental companies may use the terminal if they do not want their guests to walk to the reception area every time they want to purchase something from the property. These compact mobile credit card terminals are easy to carry and convenient.
Vacation Rental Installment Payments
Not every guest may be able to make the full payment for the vacation rental upfront. Offering the option to make payments in equal monthly installments is a new trend in the vacation rental transaction processing scene. Both small and large rental companies have started to adopt this new payment method. Installment payments are supported by the credit lines offered by issuers. However, it is important to note that in most cases, guests will have to pay some additional interest for using this service. Many guests don’t mind paying the extra interest.
Vacation Rentals Pay Later
The ‘pay later‘ option works pretty much like installment payments; however, the unique differentiation is that generally pay-later services are offered by non-banking financial institutions, and usually, their tenure for split payments is lot less than the conventional card issuer’s based EMI. With the pay-later facility, guests can reserve the vacation rental without making an immediate payment. It has been noticed that adding the pay-later facility to a vacation rental checkout page increases the overall booking conversion.
Vacation Rental ACH Payment
ACH and eCheck serve as excellent alternative payment methods for vacation rental property owners. Compared to credit card processing, these alternative payment methods are cheaper and more secure. With electronic check payment processing, vacation rental companies can eliminate the hassle of handling paper checks. We offer API-based eCheck and ACH solutions for all types of vacation rental companies in the United States.
Vacation Rental Debit Card Processor
In addition to the conventional credit card processing solutions used across the vacation rental industry, many property owners prefer to exclusively use debit cards to accept payments. With the debit card payment processing solution, property owners charge the rental directly from the guest’s bank account. Property owners prefer to use debit cards as they are considerably cheaper to process compared to credit cards, and fraudulent transactions are historically lower with debit cards. Many customers still don’t have credit cards and may prefer to make payments through their prepaid cards or debit cards. By presenting themselves as debit card-friendly vacation rentals, these property owners can attract a significant percentage of budget-conscious prospects who prefer not to use credit for leisure.
Features of Vacation Rental Payment Gateway
A vacation rental payment gateway functions as a fully operational payment processing platform. Property owners can accept nearly all types of digital payment methods through this platform. Robust security measures protect merchants from fraudulent transactions, while a detailed merchant panel provides clear insights into transactions flowing through the gateway. Property owners can easily initiate refunds and represent documents for chargebacks if necessary.
Application Process for Vacation Rental Merchant Services
The application process for vacation rental merchant services involves several steps. Property owners begin by visiting our website and submitting basic information, including name, phone number, email, and a short message. Our team identifies the unique requirements and requests documents to be submitted to our partner acquiring institutions.
Underwriters meticulously evaluate all business-related information and make a judgment to approve or decline the account. If any details are unclear, underwriters will request clarification. We boast a high approval rate for merchants in the vacation rental industry. Upon account approval, property owners receive a detailed merchant account agreement displaying all terms, conditions, rates, and fees. After approving the terms, property owners receive integration and setup details and gain access to a dedicated support team for assistance with installing credit card terminals or integrating the payment gateway into their website. Choose our cost-effective vacation rental payment processing solution, equipped with excellent features to support your business nationally and internationally.
