19 Replies Latest reply: Oct 4, 2019 4:35 PM by swlinphx RSS

    credit card fees

    hhirental2 Contributor

      Does Homeaway act as the bank and retain the 3% fee for credit card payments, which are now our only option?  I would like to have an echeck option again so I don't have to pay these fees. 

        • Re: credit card fees
          u0999 Premier Contributor

          You have no such option. even echeck option incurs 3% fee. Just up your rates to cover for it.

            • Re: credit card fees
              koko Active Contributor

              Which really does not work either, since HA will take 3% from the increased amount and you will always be short.

                • Re: credit card fees
                  bonesxxx Active Contributor

                  Not if you increase your rates by 5%

                    • Re: credit card fees
                      koko Active Contributor

                      Yes sure,

                      but I am tired of adding fees for everything which increases the price and it is hard to be in line with the going rate.

                      I do not discount and do not want to add fees.

                      As long as it stays at the 3% I can deduct that from taxes along with the fee HA charges. It's the cost of doing business.

                      Although before HA it was not a business but a nice thing to do and meet people.

                       

                        • Re: credit card fees
                          bonesxxx Active Contributor

                          I get it... as I've said before, it's not fun. Like any other business, we are getting nickeled and dimed to death... and it's just getting worse.  My county is getting ready to vote on a rain tax.  I can hardly believe my ears.  A rain tax? LoL.

                           

                          At some point I'll have no choice but to take the whole operation underground.  I'll become a competitor to the OTRs via my own website or Craigslist as so many others have already done.

                  • Re: credit card fees
                    greggt Senior Contributor

                    You can also add an Administration fee of the average of your rate to cover the percentage like maybe $59.00 per stay.

                      • Re: credit card fees
                        swlinphx Premier Contributor

                        Yes, that is what we do too. We add an administration or management fee that makes up a bit for the processing fee on HomeAway. They used to allow you to do it by percentage that came out almost exact but now we just have a flat fee. On Booking.com we still use a percentage to make up for the commission they charge

                      • Re: credit card fees
                        hhirental2 Contributor

                        Can someone from Homeaway admin answer:  Does the credit card processing of all rental income and taxes go through a bank that charges the fee, or is the 3% fee retained by Homeaway?

                          • Re: credit card fees
                            bonesxxx Active Contributor

                            I doubt you'll get a moderator to supply an answer... they tend to get involved only in matters involving sheets & towels or welcome baskets.  They have avoided the payment change fiasco universally.

                             

                            However I think feibus did some sleuthing and discovered that the processing is done by HyperWallet.  My guess is HW does it for something less than 3% and Vrbo/HA gets a vig.

                              • Re: credit card fees
                                feibus Senior Contributor

                                Not me.

                                 

                                But every CC processor charges a fee, I've seen as low as a few pennies over interchange rates (which go from about 0.8% to 2.95% if I remember right) to as high as a fixed 15%, just depends on the risk profile of the businesses doing the charging.

                                  • Re: credit card fees
                                    bonesxxx Active Contributor

                                    Oh come on feibus I might be going senile but my memory isn't that bad.  I am sure it was you who discovered that...

                                     

                                    But then again, I was also sure I was wearing orange socks this morning... now don't appear to be wearing any

                                    • Re: credit card fees
                                      wildiris Active Contributor

                                      My memory on this accords with bonesxxx's memory.  My guess is that a reprimand may have been issued for sharing information.    Then again, I'm not wearing any socks, either.  (But, I am wearing flip-flops.)

                                        • Re: credit card fees
                                          koko Active Contributor

                                          So you discovered the "naked truth"?

                                          • Re: credit card fees
                                            feibus Senior Contributor

                                            I didn't discover Hyperwallet in the terms, because at that point, I hadn't read the new terms... BUT, I did google the name and posted that it was part of PayPal, I just don't know how that fits into the overall scheme of being a large merchant processor, because I'm not inside the guts of the machinery.  Are they the gateway?  Are they just software providers for Expedia's gateway?  That's outside what I know about that relationship.

                                             

                                            Anyway... drifting way off target.

                                          • Re: credit card fees
                                            swlinphx Premier Contributor

                                            HomeEscape charges no processing fees. And also no extra taxes or service fees. For $199 a year subscription we use them to process all of our direct bookings. Even cheaper than PayPal or any other service we could use on our own.   Plus, we have gotten some direct organic bookings through them from search engines.

                                        • Re: credit card fees
                                          scowol Active Contributor

                                          hhirental2 wrote:

                                           

                                          Can someone from Homeaway admin answer:  Does the credit card processing of all rental income and taxes go through a bank that charges the fee, or is the 3% fee retained by Homeaway?

                                           

                                          Would knowing whether it's Expedia, Vrbo, a bank, Hyperwallet, or Death Star Galatic Empire Payments Systems, Inc., etc. empower you to do something different?  I'm just trying to understand what you would do with this information if HA can provide it?

                                            • Re: credit card fees
                                              koko Active Contributor

                                              I think it just in the interest of transparency that HA should provide such information when asked for it.

                                              It has nothing to do with what one would do with that information which is likely nothing. Since Expedia is a publicly traded company since 1999, all this info should be available in the prospectus.

                                              While it would stand to reason that HA pays less than the 3% and included an administrative fee into this, it would also be a guideline of what is to come with this percentage being a stable one or not. And since everyone here HAS to use this payment method it will influence all our businesses greatly.

                                              So the question, while unanswered by HA reps, is a valid one I think.

                                                • Re: credit card fees
                                                  hhirental2 Contributor

                                                  Exactly., since we do not have another option to use for the payments, it must be considered as another factor in what our true cost of using HA is, compared to other sources, and how stable that cost may remain. If considered by HA to be a source of revenue, then I have less comfort that it will remain stable over time. 

                                            • Re: credit card fees
                                              mauimakani Contributor

                                              An interesting article I read yesterday discusses how large companies are bringing the payment process in-house. I don't think VRBO is the actual payments facilitator, I think HyperWallet was just integrated, much like Yap was.

                                               

                                              https://www.forbes.com/sites/forbestechcouncil/2019/10/01/the-next-billion-dollar-payments-company-wont-look-like-what-you-might-expect/#1e580cca2c30