Choosing the Best Payment Processing Option for Your Vacation Rental

We understand that selecting the right payment processing option for your vacation rental can be a complex decision. Here, we break down the key options—Stripe, PayPal, manual payments, and more—so you can make an informed choice that suits your needs and provides transparency for your guests.

Default Property Currency

When setting up your property with us, we set the property currency to the currency of your choice. While the displayed currency may fluctuate based on the user’s IP address, rest assured that your property currency remains the same. This helps in maintaining consistency and avoiding confusion for your guests.

Payment Processing Options

Stripe

Stripe offers a robust solution for handling payments in multiple currencies. Here are the key details:

• Transaction Fees: For domestic transactions within the EU, the fee is 2.5%. For international payments, the total cost is 5.25% + 20p. This includes a 3.25% transaction fee and a 2% conversion fee.

• Currency Conversion: Stripe converts payments from GBP to Euros using the mid-market rate and charges a 2% conversion fee. You can learn more about Stripe's currency conversion.

  
  

PayPal

PayPal is another popular option for processing payments:

• Transaction Fees: PayPal charges 2.9% + a fixed fee for domestic payments and 4.4% + a fixed fee for international transactions.

• Currency Conversion: Guests can pay directly in Euros to avoid conversion fees. If they pay in GBP, PayPal charges a 3-4% conversion fee above the base exchange rate. For more details, check out PayPal's currency conversion fees.

• User Trust: PayPal is widely recognised and trusted by users, which can enhance the convenience for your guests.

Manual Payments

Manual payments allow guests to transfer money directly to your bank account:

• Transaction Fees: Domestic EU transfers often have lower fees or none at all. International transfers can incur fees of around €5-€20 per transaction, while domestic EU transfers often have lower fees or none at all.

• Currency Conversion: The bank handles conversion, typically at a rate 2-3% above the mid-market rate.

Other Payment Gateways

In addition to Stripe and PayPal, we support a variety of other payment gateways, including Braintree, Apple Pay, and more. These options ensure that your prospective guests can pay in their desired way, providing flexibility and convenience. Whether your guests prefer digital wallets, direct bank transfers, or traditional credit card payments, we have you covered.

Comparison with Online Travel Agencies (OTAs)

OTAs like Airbnb charge similar fees but often have less favorable exchange rates and additional costs. Airbnb charges a 3% currency conversion fee when the guest's payment currency differs from the host’s payout currency. Additionally, Airbnb has a payment processing fee of around 3%. This means that the total fee with Airbnb can be around 6%, which is similar to Stripe but generally not liked by guests due to the added costs and less favorable exchange rates.

By using Stripe, PayPal, or other gateways for direct bookings, you can offer a more transparent and cost-effective solution, retaining more control over your bookings and revenue. Guests appreciate knowing exactly what they will be charged without additional hidden fees.

Integration and Flexibility

We can integrate Stripe, PayPal, and other payment gateways directly into your website, allowing guests to choose their preferred method. This flexibility ensures convenience and satisfaction for your guests, while you benefit from streamlined payment processing.

Summary

Both Stripe and PayPal are excellent choices for processing payments in Euros. Stripe offers lower conversion fees and uses mid-market exchange rates, making it a cost-effective option. PayPal provides ease of use and customer trust, especially for guests familiar with the platform. Compared to OTAs, using Stripe, PayPal, or other payment gateways can reduce fees and offer greater transparency. Additionally, manual payments via direct bank transfer can sometimes result in lower overall fees and provide an alternative for guests who prefer not to use online payment platforms.

All payment options can be linked to your website, giving you and your guests flexibility in how payments are processed.

If you have any further questions or need assistance with setting up your payment system, please feel free to reach out.