Payment by Credit Card Common form of payment for rental properties is check!

Most property owners accept payment for their rental either by check, traveler cheques, or wire transfer. Only a few owners and partners have credit card merchant status. Why are credit cards not widely accepted to pay for a vacation rentals ?

• Individual owners do not get merchant status, as you have to have a business in order to qualify.
• For a few rentals a year it is often not worthwhile to go through the hassle of establishing a credit card merchant account in the Caribbean.
• The cost of credit card charging is enormous. The local banks charge about 5% on each transaction, including terminal fees, communication charges, etc., which takes quite a bite off the rental amount.
• Owners are afraid of credit card charge backs for doubtful reasons, which are beyond our or the owners control. (e.g. no shows, who then reclaim charges through the credit card company).

Payment by Credit Card

More and more owners accept credit card payments through PayPal, because PayPal has a less stringent policy on credit card merchant accounts. PayPal charges between 3 % - 5% for a credit card funded transaction. Usually, the renter is expected to cover these cost as they are not calculated into the rental rate.

© All rights reserved by Dream Beaches Inc. Last update 10-May-2011.