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7362 Views 17 Replies Latest reply: Oct 1, 2013 5:10 PM by beth RSS
New Member 5 posts since
Oct 15, 2011
Currently Being Moderated

Oct 15, 2011 9:05 AM

Best payment method for foreign clients?

HI everybody,

 

 

My wife and I, are new to VRBO and to renting.  We own and manage a new property located in Central Mexico http://www.zirahuen-elaltolucero.com and we also live there, in another house located in the same address.

 

We are Mexican Citizens and we were wondering, which could be the best Payment method for foreign possible clients? (mainly US and Canadian Travelers)

We looked at the "New" Payment system which provides an easy and fast method to accept Credit Cards, but sadly we discovered that it was valid only for US citizens   so we thought about accepting PayPal ?!?

 

We want of course, to give our possible guests, the easiest and hassle free way to make their payments, so any advice is welcome!

 

Thank you very much in advance.

 

Diazruanova

  • anja Senior Contributor 1,555 posts since
    Aug 9, 2011
    Currently Being Moderated
    Oct 15, 2011 6:07 PM (in response to diazruanova)
    Re: Best payment method for foreign clients?

    I have been using PayPal for many years for my rentals. There are some people on this forum that do not like it so you will hear many different views. But, I never had a problem with accepting it from national and international renters.  I have one PayPal biz membership used only for my rental business. Obviously, you have to do your due diligence by examining all the different ways to accept payments - whether they are from Mexican nationals or international guests. There are pros and cons to all ways. Learn everything about PayPal when you open your [free] account. Examine all the details...the way it operates...the fees....the resolution/dispute center...customer/buyer protections in particular, etc..  Using PayPal to handle your rental transacation for a "service you are providing"  will not be treated by PayPal as the same for "tangible items that are shipped to a customer"....when it comes to coverge and disputes, etc.  Open your account and read all the fine print inside. Again, I've used it for years with only success for payments by credit card and by bank transfers between my guests and I.  When the guest does not have a PayPal membership, they just sign up for one if they want to pay me with a credit card or if they want to transfer money to me from their bank account to my PayPal...then I immediately transfer it out of PayPal and into my biz bank account. All transactions happen without revealing credit card numbers and bank account details to each other.  I never had a problem...but some people on this forum may disagree with me because there are, as I stated earlier, pros and cons, with every payment method...including PayPal. That's the beauty of a forum open for all opinions....then you get to decide what is best.  I have discovered, after using several different methods of payments, that there is no best way...they all have fees and constraints. I am adding to my arsenal of payment methods GoogleCheckout.com  and Intuit.com . I was just "cleared" by both and will start using them....but they too have pros and cons ....fees and constraints.  The most important for me is "security" between me and my guest/customer. Do a little homework after you get others' suggestions.

    • anja Senior Contributor 1,555 posts since
      Aug 9, 2011
      Currently Being Moderated
      Oct 15, 2011 6:35 PM (in response to anja)
      Re: Best payment method for foreign clients?

      By the way....I forgot to add that I also accept "bank wire transfers" from my international guests: the bank transaction is either via PayPal....or directly in between their bank to my bank.  I lived 25 years overseas {Europe} before I moved to my present home in the USA, and the "bank transfer" is very common in Europe.  Again, I have one bank account only for my rental biz transactions...the guest gets that bank detail...they make the transfer from their bank .......when money is received by me from the renter...{3-4 days}  I then transfer it the same day out of that biz account and into another {biz} account {for security].   I do not keep any funds in the account that I give to guests for the transaction.  I have online banking with my bank so this transaction is done in a matter of minutes, from home. Never had a problem with a bank transfer transaction.  Again, some people on this forum will not agree.  Like I stated earlier, there are various ways to take payments....all ways have pros and cons....weaknesses and strengths.  Credit cards are not the best way, either....I have discovered.  I try to do my best to "get to know" who I am renting to via  communications with them before we go into transactions.  I have been renting my home for many years and I have only had two "less than desirable" guests in my home {they were drunks who were not "happy drunks" after a few drinks......they became hostile towards me}. But, no one ever tried to cheat me with any of the methods of payment that I accept, including personal checks {national guests}, bank certified cheques {international}, credit card via PayPal,  bank transfer via PayPal, bank transfer from bank to bank, or traveler cheques.  Cash in king...but it's not easy to deal these days in cash {only}.

        • anja Senior Contributor 1,555 posts since
          Aug 9, 2011
          Currently Being Moderated
          Oct 16, 2011 2:36 PM (in response to diazruanova)
          Re: Best payment method for foreign clients?

          Hi Enrique,   I just want to follow up and stress that PayPal will always refund the renter if the renter has a complaint [about you or your property] during the stay....and the whole "affair" ends up with you witholding a damage deposit, or security. Actually, even if there is no tangible reason for the "guest" to be unhappy with their stay...they can always raise a "dispute"  in PayPal...and PayPal will give them ALL of the money back....because PayPal does not "cover you" for rental property. It's in their terms. Do read everything. So, you can only expect PayPal to be the "transaction process for payment"  but you can not expect PayPal to protect YOU if it is a rental property in dispute. There is only full buyer protection for "items" bought and sold...not rents for property.  That's why some people [on this forum] do not like paypal.  PayPal has been a good way to transact quickly...just know the weakness.  Now, I have never had a single guest in conflict over my property disputing me about money [that's the truth "on the head of my husband" !!! ].  I am a neighbor to my rental...I practice a thorough communication with all serious prospects....a lot of communication between us before money is exchanged...I want them to know everything about the rental, the surroundings, maps {online road and Google Earth...but only a birdseye view from a distance - they do not get my exact address}  facilities, nearby beaches {we have a beautiful coastline...it's a tropical island}, nearby villages for shopping and  local culture, how to pay { my 6 payment methods disclosing that there are fees involved}, how to cancel the reservation, a full cost breakdown per night {or weekly} + any qualifying discount + whatever fee + taxes {sales and hotel tax}. I answer all of their questions, my website has a lot of photos {and my ads online have 16 and the maximum number of photos permitted on all of the web portals where I advise....I do not just use HA/VRBO}.  My point:  I do a lot to give the propspective guest not only the "picture" of where we are....but the "feeling" of what it is like to spend time here.  If they do not ask many questions, I do the above anyway...to every single prospect. How? I created my own personal templates to use with various responses. {I do not share my templates}. I've been in business for 6 years with this current  property....the property was also a vacation rental under prior ownership.  I did an enormous renovation, changing interiors and exteriors....the original guests who came to the original owners are still coming back...they loved the improvements...they love the preparations for them I do....and all of my guests tell me how happy they were/are  with the details I give them...in advance...which helps them to decide. I tell them that I am a neighbor, next door, and my photos show how much privacy ALL properties have here from each other...no homes are on top of each other....so show the immediate surroundings. The privacy factor is important...and my guests never see  or hear us...UNLESS they need assistance. Then, they can easily contact us...and we are "on it" to "fix it".  Many times they want to socialize and then we get together to share experiences, share BBQ, etc..   We have wonderful guests experiences.  The key for me is "good communication" and treating every guest coming as if they were my first.

        • New Member 7 posts since
          Jun 21, 2011
          Currently Being Moderated
          Oct 27, 2011 10:26 AM (in response to diazruanova)
          Re: Best payment method for foreign clients?

          DO NOT USE  PAY PAL

          There are scammers out there who know it is the  easy way to get a free vacation . We had this happen to us . The scammers booked 10 nights in our Paris apartment , then demanded  a full refund, ie a charge back from their credit card company  for  this reason

          UNABLE TO SLEEP ALL DAY DUE TO CONSTRUCTION NOISE IN NEXT BUILDING ( THEY STATED WE ARE NIGHT OWLS )

            We just dont wa only wire transfers from overseas clients ( they can do it all online from their home computers ) or personal cheques from USA clients

          We accepted only  five payments over a four month period  using PAYPAL - the other four clients were honest

  • native7 Contributor 47 posts since
    Mar 16, 2012
    Currently Being Moderated
    Apr 18, 2012 9:43 PM (in response to diazruanova)
    Re: Best payment method for foreign clients?

    So glad I came across this thread. 

     

    CHARGE CARDS ONLY BENEFIT CREDIT CARD COMPANIES AND TRAVELERS TRYING TO GET OUT OF PAYING! THERE IS NO BENEFIT TO VACATION RENTAL OWNERS OTHER THAN POTENTIAL LOSS OF $$$$

     

    We own and manage many rentals and prefer Payment by check or wire transfer.  We have been renting for over 2O years and have learned a thing or two.

     

    Almost all of our international travelers pay by wire. (over 50% of our business) Many of our U.S. customers pay by wire as well.  If an international guest pays by check, it must be drawn on a US bank and in US funds.

     

    This is the only truly Secure method for us as Vacation rental owners.  We do accept limited payments by credit card via PayPal and charge a 4% convenience fee for this option.  If this does not discourage them from paying by credit card, the complications of using PayPal usually do.

     

    WARNING! ~ We did make a mistake and agree to accept payments via SQUAREUP for a while.  Felt like they would be a cutting edge new company as they were founded by the same guy who founded Twitter.  Recently had a partial dispute by a guest who decided to leave early.  Even though we have a no refund clause in our contract,They were disputing $3000 of an $8000 rental.  Even before notifying us of the dispute, Square stopped depositing our funds and then froze our account, Holding over $50,000. THEY HAVE NO PHONE and can only be contacted via e-mail with little to no response. (A 10 BILLION DOLLAR COMPANY WITH NO CUSTOMER SERVICE AND NO PHONE!) It has been 2 months and they say they will hold those funds for 120 days.  Even though our guests have come and gone and have sent letters saying the charges were valid.

     

    Over 10 years The few problems we have had has been with credit card transactions.  Any dispute has been decided in favor of the card holder no matter what our contract said.

     

    FYI ~ Our solution is to file suit in Florida court.  Since most guests (almost all are from elsewhere) This forces to guest to hire an attorney in your city and travel back to appear for the case.  If they have no valid case, this makes them VERY willing to settle!

     

    We are considering only accepting Checks or Wires as this is our best option to protect us as owners.  If the renter questions this, point them to the Carefree rental guarantee (which is pretty worthless) or Rental Insurance.  This typically makes all of our guest feel more comfortable.

     

    One thing I would like to point out is that HomeAway is advising guests NOT to pay by wire since they now profit $$$ big on credit card transactions.  They advise traveler not to rent from owners that accept wires???? 

     

    If a guest wants to rent from you and they are respectable, they will pay by check or wire and cover themselves with inexpensive travel insurance. 

     

    Again, protecting the traveler and their own profits at the expense of us, their customers. So, as others have said, Europeans are very used to paying by wire and that is the best way to get paid by International travelers as THERE ARE NO CHARGE BACKS.  Most US customers have no problem paying by check and again NO CHARGE BACKS.

     

    No one else with a say in weather or not you get paid for your hard work!  Good luck to all and hope this helps!

    • marilyn Active Contributor 459 posts since
      Nov 9, 2011
      Currently Being Moderated
      Apr 19, 2012 8:36 AM (in response to native7)
      Re: Best payment method for foreign clients?

      For 11 years wire transfers hve been our best method of payment from foreign renters. It's quick and easy and secure.

       

      Marilyn

      www.hamptonhouseproperties.info

      • serenade Community All-Star 202 posts since
        Aug 19, 2012
        Currently Being Moderated
        Jul 24, 2013 11:36 AM (in response to marilyn)
        Re: Best payment method for foreign clients?

        I have a potential guest from Europe who is trying to make wire transfer to me so I gave her my routing number and bank account, but she was asking for SWIFT and IBAN numbers. Does anyone know where I can find these numbers??

        • anja Senior Contributor 1,555 posts since
          Aug 9, 2011
          Currently Being Moderated
          Jul 24, 2013 1:41 PM (in response to serenade)
          Re: Best payment method for foreign clients?

          serenade wrote:

           

          [...], but she was asking for SWIFT and IBAN numbers. Does anyone know where I can find these numbers??

           

          These are banking codes used within some EU countries.  Tell your guest that SWIFT and IBAN aren't used by your USA bank ...you only have, and she should only give her bank, your "routing number and bank account".  

          • serenade Community All-Star 202 posts since
            Aug 19, 2012
            Currently Being Moderated
            Jul 24, 2013 1:40 PM (in response to anja)
            Re: Best payment method for foreign clients?

            Thanks much, Anja. Yeah, I told her that, and somehow she said she can't use the routing number only. Let me email her again.

            • anja Senior Contributor 1,555 posts since
              Aug 9, 2011
              Currently Being Moderated
              Jul 24, 2013 3:53 PM (in response to serenade)
              Re: Best payment method for foreign clients?

              I don't know what her perceived or real problem may be in whichever country she is, but I think that she's incorrect, what she is telling you.  I only know that about a third of my business is with Europeans who make the journey to my State ....they bank-to-bank wired funds to me which was their preferred  payment method....although I offer several ways to pay me.....the funds coming out of their account directly into my account (...and just yesterday, a German guest wired to me). Whenever anyone asked for SWIFT or IBAN #s, I explained that my bank doesn't use it in the USA.  No problems ever.

               

              P.S.  it should have nothing to do with the amount of money your prospect needs to wire to you, either.    Another personal example I can offer about wiring large amounts:   I lived/worked in Europe for many years and have a lot of friends in the EU countires.  Two months ago, friends of mine in Germany decided to purchase property in my State - Hawaii ....and they paid cash... $$$$$$   via a bank account transfer (a hefty amount of money) directly into the escrow account here in the USA.....a flawless transaction.   My only point being that ---it can be...and is... done, securely.

              • serenade Community All-Star 202 posts since
                Aug 19, 2012
                Currently Being Moderated
                Jul 24, 2013 1:58 PM (in response to anja)
                Re: Best payment method for foreign clients?

                Yeah I just emailed her and told her we don't use SWIFT/IBAN here in the US. I never had a problem before either - oh there was one time a guest needed to get her back to increase her credit card limit since she said it's not common to pay a big amount (over $4K) using a credit card. But she sorted it out in 2 days.

  • chateaudebelves New Member 2 posts since
    Sep 30, 2013
    Currently Being Moderated
    Oct 1, 2013 4:29 PM (in response to diazruanova)
    Re: Best payment method for foreign clients?

    I have a Mexican client who is having trouble paying with his Mexican Visa Card. He keeps getting "INVALID CARD NUMBER." Does anyone have experience with this?

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