Credit Card Processing

Hey Everyone,

I just wondered if you have had a great experience with your credit card processor? I have been using a company that is now charging for refunds and that will impact business. I would love to hear of another great company.

Thanks

Lindsay

I've had no issues and good customer service with Lynnbrook, but they don't refund the processing fee on a refunded transaction. (However, they also don't charge an extra fee on a refund, which I have seen some other processors do.)

If you're looking for one that will actually refund the fee on the original transaction if you refund it, that's not easy to do--but they do exist. Someone in another thread here on the OR forums recently mentioned specifically that, but I don't recall who it is. I didn't bother to look into it because I think my total loss on processing fees due to COVID cancellations was only around $50. (I'm now up to like 80% of my business through Airbnb, for better or for worse--well, actually clearly for the worse. :P)

Years ago Stripe did, but they stopped offering new accounts with that feature a long time ago, and earlier this year they took it away from those who already had it.

We are not aware of any provider that is currently offering new accounts that refund their fees on refunded amounts. If anyone knows of one, please let us know!

I am curious if anyone tries to collect the credit card processing fee from the guest by withholding from their refund on a canceled booking? My clients have been losing money on all of their Covid-19 cancellations/refunds because the credit card processor does not refund the fees on payment refunds.

I've done a little research to try to figure out if it is even legal to withhold the amount of credit card processing fees from refunds on canceled bookings, but no luck.

I use Stripe and have generally been happy with them. I know they won't refund my fee so I have something in my Rental Agreement that a $50 processing fee will be withheld if someone cancels (even if they're entitled to a full refund). Have not had any complaints.

I did hold the "lost fees" - where basically nobody made any money, we just didn't lose money. Folks were pretty flexible on those considering the policy would not typically allow for a refund, but I was trying to do what in my mind was the right thing. Since folks pretty much have an idea there is a pandemic going on, we are not seeing much for cancellations, more just verification that folks can come out and a rapid increase in bookings.

I've been using Bambora for credit card processing for direct bookings and VRBO since that's been integrated with API. No issues and it worked perfectly.  At the time I signed up with them through OR, I did the research and found the best rates for me. 

In October 2023 I got a message that Bambora was changing to Worldline. No big deal. I had some issue reconfiguring, so I went back to the OR suggested processors page for other options. In doing so, I see that Worldline/Bambora is best for Canadian customers. I am in the US. I don't know why this is recommended for Canadian customers...but anyhow, I see that Lynnbrook is suggested by OR. 

After contacting Lynnbrook for fees/rates, etc, they casually mentioned that they keep the money until check in (like Airbnb does). That's a no go for me. Why should they keep my money and earn interest on it? I have guests book over a year out.  They mention auditing and acquitions but those are non issues, I have an accountant and there is no need for this. Curious why OR recommends them.

Stripe is a bit more expensive, and does not appear (according to their customer service) to allow for my payment method of 50% to reserve and balance pulled automatically 30 days prior to stay---basically they don't keep the payment info on file to pull that 2nd payment. This is necessary for me, as I don't need the hassle of chasing that final payment. 

I'm looking for alternatives----what are other vacation rental owners using for payment processing these days? I suppose I can stick with Worldline (formerly Bambora)... 

Thanks!

Kara

I have always been using Stripe.  I am happy and it is easy.

I looked at others briefly but didn't ever make a change.  Lots of other items to worry about.

Stripe ... does not appear (according to their customer service) to allow for my payment method of 50% to reserve and balance pulled automatically 30 days prior to stay---basically they don't keep the payment info on file to pull that 2nd payment.

Hmm, we have lots of clients using Stripe to do exactly that.  I think their agent was confused.

The various payment processors we support have lots of variety as to options, features, and cost, and there is no one right answer for everyone.  That depends on your business practices, financial strength and history, and many other factors, so it's best to do your research and choose whatever suit you best.

While Lynnbrook's default plan does indeed retain the funds until arrival (as Airbnb does), that is not always a requirement - I know some of our clients receive the funds right away (as with Stripe).  That may be something you can discuss and negotiate with Lynnbrook based on their underwriting, and actually that's one of the reasons we like Lynnbrook - with Stripe it's one-size-fits-all, which is quick and easy for many clients but for others, having someone you can negotiate with can achieve a better result.

I use stripe.  I pull a payment of $1 at booking and a 2nd payment of the rest.  

Hi Ken,

Very helpful. Thank you.

I suspected that the Stripe agent didn't completely understand what I was asking. So it's good to hear that my payment structure can work with them. However, I'm leaning away from Stripe because of the lack of service and ability to negotiate rates... 

But Lynnbrook is adamant about not releasing funds until check in...I will keep trying but I just received another email back stating this. 

Why should I switch from Worldline/Bambora if it's working and still seems to have the lowest rates for me? 

Thanks,

Kara

There are absolutely situations where Worldline/Bambora is the best possible choice, and maybe that's you - so, if you like them best, keep them!  That's why we support them, and all the rest - each one may not be right for you, but it's right for somebody.   :-)  

Thanks Ken. I always appreciate the quality OR customer support.