35 Replies Latest reply: Apr 9, 2013 12:22 PM by lincon9 RSS

    Credit Card Processing?

    tom.roland Contributor

      I've currently been working with Merchantware that charges 2-4 % on each transaction depending on the type of card used. There is also a monthly statement fee of $ 8-10 per month. I have no experience with Paypal, but have heard that they will hold deposits on reserve. Can you help with what's worked best for you in collecting payments?  thanks...Tom

        • Credit Card Processing?
          tyann Contributor

          I started with PayPal, but have moved to Intuit's virtual terminal. PayPal charges $30 per month and then 2.9% + 30 cents for each transaction. If you collect over $3000 per month, the percentage rate goes down a bit.

           

          Intuit's basic virtual terminal charges $12 per month and then 2.something %...I can't remember now. I do know that my per transaction fees have been reduced by nearly half by going through Intuit. If you upgrade to a higher account, you can even sync with your Quickbooks.

           

          Tyann Marcink

          www.vacationhomeinbranson.com

            • Credit Card Processing?
              tom.roland Contributor

              Tyann: Are you aware of any fees to terminate Intuit's program if you are unhappy?

               

              Is it really necessary to offer American Express and Discover? AMEX has a monthly fee of $4.95-7.95 per month plus 3-3.5%? It can get pretty pricey?  Thanks, tom

                • Credit Card Processing?
                  tyann Contributor

                  I don't know of any fees to terminate Intuit's service. You can check out their terms at their website. I don't offer AMEX, and have had no problems when guests ask to use it. THey always have a back up card for when AMEX is not accepted. Discover is very popular, though, so I would offer that one.

                • Re: Credit Card Processing?
                  New Member

                  I use payapl to accept payments. It cost about 3% per transaction. They do NOT charge me a monthly fee of any kind.

                    • Re: Credit Card Processing?
                      New Member

                      While we try to discourage credit card payments because of the fees,  we are set up to accept them as a back up for last minute rentals or those we might loose if we did not accept them.

                      We also use Pay Pal and there is not a $30 monthly fee,  just the 2.9% and .30 per transaction fees.

                  • Credit Card Processing?
                    New Member

                    I use the payment pros account I got through Homeaway. Their virtual terminal is pretty easy to use. I don't take amex because of the fees, especially since lots of folks like to put their deposits on the credit cards and I don't like having to pay fees twice. I agree with tyann - it seems like everyone has a backup credit card in addition to Amex.

                     

                    the payment pro folks are really good on support - I've called them on the weekend, or after hours. I've always gotten through to them and their reps have been extremely helpful.

                    • Credit Card Processing?
                      patti.merillat-smith New Member

                      Hi Tom,

                       

                      I haven't used Pay Pal either and don't think I want to after reading they charge $30/month.  I've been using eCom Merchant through ivacationonline.com and things are going fine.  The fees really do add up though and I was thinking about adding like a $5 convenience/booking fee for all of my online bookings to help compensate.  I would be interested in what you and/or others thought about this.  I have a condo in the Smoky Mountains where there is alot of competition.

                        • Credit Card Processing?
                          tom.roland Contributor

                          I know that some owners add a convenience fee of 3% for all credit card transactions. I haven't done this but it is a consideration. That starts to get into a different discussion about how you accept payment for your reservations. I love taking a deposit with a credit card so I'm not waiting for a check in the mail ( that may not arrive ). 

                            • Credit Card Processing?
                              tyann Contributor

                              I know we do our payment method a little different than the norm. I put the cleaning fee on their credit card at the time of the reservation. That way I have an immediate payment and can block the dates for them - they don't have to worry about losing their dates, and I have money down. I do not charge a processing fee for this amount (it's about $3).

                               

                              This part is nonrefundable, so if they do cancel, it becomes a booking fee. I do allow them to apply it to a future stay that is within a year of the originally booked dates. It makes the nonrefundable fee easier for them, and have had zero arguments about getting it refunded if they have to cancel. In their minds, they still have the money, and it's up to them to use it before it expires.

                               

                              I then ask for the deposit and balance by check. If they want those on the credit card, I then add the processing fee. I have had a handful of people in over 3 years decide they want the payment on the credit card. Everyone has understood why there is a processing fee.

                               

                              Tyann Marcink

                              www.vacationhomeinbranson.com

                          • Credit Card Processing?
                            New Member

                            I use PayPal.  I have the Pay Now attached to my website.  If the renter does not have a Pay Pal account they can use anycredit card.  I only take deposits on credit card and our rental office take payment if full on check in.  I do loose about $6 to $8 on a $250.00 to $500.00 deposit.

                              • Credit Card Processing?
                                tom.roland Contributor

                                What extra fees or reserves are required with Paypal?

                                 

                                • Is there a minimum monthly charge?
                                • What percent does Paypal charge?to the guest or owner?
                                • Are reserves required in your account ?
                                • Statement fee?
                                  • Credit Card Processing?
                                    New Member

                                    Tom, we use Pay Pal and there are not any monthly fees. The fee is approx. 2.9% (it depends on the transaction amount) plus .30 per transaction. The fee is charged to the owner (or the person initiating the transaction).

                                    There are not any reserves required. Tthere is not a statement fee as you can go online to your account and print your statements.

                                    You set up your Pay Pal account using the your bank information.

                                    You send a statement from Pay Pal (online) The statement has a link to take your renter right to Pay Pal so that they can make the credit card payment.

                                    The payment is held by Pay Pal so you do need to remember to go to Pay Pal and instruct them to deposit the money into your bank account. Their fee is already deducted from the amount that is available to be deposited into your account.

                                    Hope this helps.

                                    • Credit Card Processing?
                                      tyann Contributor

                                      There are 2 different ways to use PayPal:

                                       

                                      1. If you would like to enter the credit card info yourself, you will need to use a virtual terminal, and that is what PayPal charges the $30 a month for, plus the transaction fees.

                                       

                                      2. If you are okay with the guest entering the info, you can use a button or send an invoice to the guest and not have the monthly charge, only the transaction fees.

                                       

                                      Tyann Marcink

                                      www.vacationhomeinbranson.com

                                        • Credit Card Processing?
                                          tom.roland Contributor

                                          It sounds easy and reasonable then for people who have Paypal accounts. What happens if the guests don't have a paypal account? Do you have them set one up or do you just take their credit card and process the transaction online? And then you would be charged the $ 30 monthly fee anyway?

                                            • Credit Card Processing?
                                              tyann Contributor

                                              They can still pay without a PayPal account. It's a very small link towards the bottom of the payment page, but it's there. If you have a PayPal account, you can test it out. Send an invoice to an email not associated with your account (your work or spouse's), click to pay it, and then you will see what your guest would see. Of course, don't pay yourself. : )

                                               

                                              Tyann Marcink

                                              www.vacationhomeinbranson.com

                                      • Credit Card Processing?
                                        spoonbill Contributor

                                        I first used Payment Processing, Inc and their virtual terminal but I now use the merchant account provided by my online booking site that is actually less expensive.  One caution on PayPal is that if a renter complains to PayPal they will beack the customer and not you.  They will withdraw the funds from your account until the issue is resolved.  It can get especially dicey with vacation rentals.  The credit card companies will back the merchant unless the renter can prove you failed to provide the property.  PayPal will issue refunds for things the credit card company would never accept.

                                         

                                        I charge the full rental up front at time of booking.  I also charge a $45 booking fee which offsets some of the fee.  This minimizes the amount of time I need to spend to manage any one booking.  There is still a lot of time required to perform all of the tasks a booking requires without adding having to collect additional money at a later date.

                                        • Credit Card Processing?
                                          Contributor

                                          Good to know Intuit is so Cheap, may need to look into that. Currently use Paypal. Only had 2 guests that dind't want to use it... They mailed a check instead.

                                          • Re: Credit Card Processing?
                                            Contributor

                                            Hi,

                                             

                                            I have used three payment system. I first used Pipeline Data processing for 2 years. They were pretty bad. They keep increasing my rate up to 3% from 2.2%. Also, I never heard of this but they now charge a yearly Credit Compliance fee which was $180 and was a requirement. I paid it the first year but realized that other merchant companies don't charge it.

                                             

                                            I got a call from Payment Processing Inc and have used them ever since. They honestly have been great and charge me 2.29% for MC and Visa and for Amex 3.5%. They also don't charge a monthly fee except authentican and assessment fee which is about $5 per month. They also have pretty good customer service since they respond within 24 hours.

                                             

                                            Though the one con I have is the virtual terminal. It's easy to use but I wish it had the ability to resubmit payment after the inital payment. Pipeline Data Terminal had that ability which was great when I need to submit the final payment. 

                                             

                                            Paypal is pretty good but they charge a high rate. I include Paypal as another option for guests.

                                             

                                            Claudio

                                              • Re: Credit Card Processing?
                                                aznative Contributor

                                                Claudio or anyone else using PPI... are you saying that if you set up a customer invoice for a guest's stay that you can only put in the one inititial deposit, and then later you cannot charge that same customer the balance due for their final payment?  If that is true, I can imagine that this would be very inconvenient!  In fact, I just couldn't be used!  I'm sure most of us take an initial deposit, and then the final deposit closer to the arrival date.

                                                  • Re: Credit Card Processing?
                                                    swlinphx Premier Contributor

                                                    No, you can charge a guest as many times as you want.  You don't need to set up a total payment invoice, other than what is stated on your contract.  You just charge them what you need to collect when you need to collect it.  You don't have to pay any monthly fees at all (I never would) with PayPal or Payment Processing, Inc.  We take all our security/booking deposits up front when booking by credit card and then they can either pay the rental fee by check or credit card when it is due 2 weeks before check-in. You can add the credit card fee to the security deposit, which is refunded, because the fee will be refunded them too.  For the rental you are giving them a choice to pay by check.  If they still choose credit card, then they are in effect choosing to pay the fee.  We also allow guests to bring cash upon check-in if they wish, at which point we immediately refund the total rental amount (with fee) back to their credit card.  In this way, neither party ends up incurring any fee whatsoever and you can still avoid a monthly fee.

                                                     

                                                    Three advantages to Reservation Mgr. are:

                                                     

                                                    1) Lower processing fee on both domestic and international transactions

                                                     

                                                    2) You can take the credit card and enter it yourself by phone without a monthly fee (PayPal's is $30)

                                                     

                                                    3) They allow refunds (full or partial) at any time, not just within 60 days like PayPal.

                                                     

                                                     

                                                     

                                                    Hope this helps!

                                                     

                                                • Re: Credit Card Processing?
                                                  patrickduncan HomeAway Employee

                                                  Hi everyone -

                                                   

                                                  I  wanted to let you know about a weekly ReservationManager webinar  where  we'll provide an online product demonstration followed by  questions  and answers between you and the ReservationManager product  team.

                                                   

                                                  View upcoming dates and register now.

                                                   

                                                  We look forward to your participation!

                                                   

                                                  Regards,

                                                  Patrick

                                                  • Re: Credit Card Processing?
                                                    New Member

                                                    I am a consult in the Payment Processing industry, and actually work with several rental owners on this site.

                                                     

                                                    My clients receive extremely competitive pricing based on the wholesale Visa/MC rates plus a nominal transaction fee.  They pay less than the services offered from VRBO, HA, and other major rental sites. This same pricing model is what the Fortune 1000 use, as it is the most cost effective way to process credit cards for the vast majority of businesses.  Transactions are typically processed through a virtual terminal gateway online.  There is no licensing fee, and the monthly fee for the online gateway is only $5.00. There are other processing options as well.

                                                     

                                                    If you have a merchant account and are interested in lowering your rates or finding a more efficient way to process credit cards… Please contact me as I can do both.

                                                     

                                                    If your using pay pal or not taking credit cards at all... Contact me. We can review your needs and look at the Pro’s and Con’s of having a merchant account and see it is the right solution for your business. If so, getting one set up is quick and easy, has no set up cost, and low processing fees.

                                                     

                                                    If you simply have questions about merchant accounts or credit cards, just email as I am more than happy to help.

                                                     

                                                    Sincerely,

                                                     

                                                    Ryan Morgan

                                                    Sr. Payments Consultant

                                                    888-929-2919 Ext. 205

                                                    ryan@cpstx.com

                                                      • Re: Credit Card Processing?
                                                        sodamo Contributor

                                                        No way given such a poorly written post!!!!!!

                                                         

                                                        Corrections made
                                                          • Re: Credit Card Processing?
                                                            New Member

                                                            Sodamo,

                                                             

                                                            I want to thank you for pointing out the sloppy nature of my posting...  I was in a hurry in writing the post and it certainly shows, reinforcing the need to "take the time to do something right".

                                                             

                                                            Hopefully my poor spelling can be over looked as I do have a long tenure and expertise in the payments field and make myself available for free advice.

                                                             

                                                            Sincerely,

                                                             

                                                            Ryan Morgan

                                                            • Re: Credit Card Processing?
                                                              swlinphx Premier Contributor

                                                              I agree that spelling and grammar, etc. can give one a feel about any poster anywhere on the Web, and that when soliciting business it is all the more important to be professional, but his post was not offensive in any way and I think that response may have been a bit harsh to poor Ryan.  They seemed more like typos due to lack of proofreading than an inability to spell or write.

                                                                • Re: Credit Card Processing?
                                                                  anja Senior Contributor

                                                                  I agree with 'swlinphx'.  Why such a strong over reaction? I found nothing suspicious in either the message, style of communication ...or a few grammatical errors.  I think you can calm down, Sadamo  .....  {The  question that I have is why so many people are using this Community Forum to "market" their service, lately.  That's getting a bit "tiresome"....(for me).....but that's another topic unrelated to this one.  I think the poor guy was trying to be helpful because there is so much dialoge here about "credit cards", merchant accounts. }

                                                              • Re: Credit Card Processing?
                                                                swlinphx Premier Contributor

                                                                My clients receive extremely competitive pricing based on the wholesale Visa/MC rates plus a nominal transaction fee.  They pay less than the services offered from VRBO, HA, and other major rental sites.

                                                                 

                                                                Ryan, are you saying your processing fee + transaction fee is lower than what VacationRentPayment charges?  Even if the percentage is lower (which I'm not sure it is as theirs is very low) once you factor in the nominal fee and the $5.00 monthly fee (VRP charges none) people need to realize this may not be the case.

                                                                • Re: Credit Card Processing?
                                                                  Active Contributor

                                                                  Hi Ryan,

                                                                   

                                                                  As per our Community Guidelines, we ask that members:

                                                                   

                                                                  "Don’t solicit others for commercial or promotional purposes unless it is in the vendor showroom."

                                                                   

                                                                  I will not remove your post above, however any future discussion about your products and services needs to take place in Community's Vendor Showroom where you can create your own Vendor Homepage.

                                                                   

                                                                  If you have any questions, please don't hesitate to let me know.

                                                                   

                                                                  Thanks,
                                                                  Laura

                                                                • Re: Credit Card Processing?
                                                                  New Member

                                                                  First you tell me how you make transaction. If you are accepting credit card by phone (virtual terminal charge $30 monthly) and PayPal will charge 3.1% + $0.30 fee on every transaction. If you are accepting credit card on website charges will be 2.9%+0.30 per transaction.

                                                                  • Re: Credit Card Processing?
                                                                    New Member

                                                                    Merchant account credit card process.