Credit cards were already dominating the market as the go-to payment option before anyone had even heard of COVID-19. Forrester estimates that US eCommerce sales using credit and debit cards exceeded $3.6 trillion in 2017, with 60% of these sales occurring directly on PCs, mobile devices, or tablets. Additionally, according to research on global payments released recently by Worldpay, eWallets (46% by 2021), credit cards, and bank transfers are predicted to be the most used payment methods in the future.
There are many different ways to pay, but it’s obvious that many tourists use their credit and debit cards to complete their online transactions. Any online shop, especially those that offer holiday rentals, must now more than ever adapt their business payments to the standards set by their customers.
The benefits of accepting credit cards include the following:
1. COVID-19 and contactless payments
Although contactless payments have become more and more common over the past few years, the COVID-19 epidemic has brought this point home even further. More than half of Americans now use a contactless payment method, from Apple Pay to tap-and-go credit cards.
This payment habit not only significantly reduces the necessity for handling currency during a pandemic but also enables card payments without requiring a pin. People spend less time waiting in line or engaging with hosts because the contactless process is significantly faster than earlier payment methods.
You may expect a steady flow of visitors as a vacation rental owner enters and leaves your property. Given the current circumstances, you ought to urge your visitors to use online payment systems. By allowing online credit card payments on your vacation rental website, you’ll lessen the risk of the virus spreading because you won’t be interacting with customers. You, your visitors, and your community will be safeguarded if you do this. You could even go one step further and let visitors self-check-in.
“What we’re truly seeing during this crisis period is a consumer behavioral change to using contactless products,” said Mastercard’s president of U.S. issuers to CNBC Select. In other words, this new trend is here to stay, and your potential clients, who are probably more accustomed to making online credit card purchases, will anticipate seeing this function.
2. The guests’ preferred mode of payment
Worldwide, 42% of internet customers like using credit cards to complete their transactions. This makes up a sizable majority when combined with the 28% of customers who favor debit card payments. Due to the consumer safeguards that are in place to protect visitors from fraud or unanticipated cancellations, using a credit card to make a payment is a wonderful way for guests to keep their money secure.
While senior and Baby Boomer travelers are used to writing checks, younger renters are not, claims senior travel specialist Nancy Parade. When they wish to make a purchase or deposit money, they use credit cards, debit cards, and smartphones. Owners of vacation homes who accept credit cards are more likely to draw in younger guests, or the future clients.
3. It is the most dependable and safest form of payment.
Some owners of vacation homes don’t mind waiting ten days to get their check or bank transfer because they think it’s the most secure method of collecting money. However, credit card payments are one of the safest payment options available to internet vacation rental firms.
Credit cards provide cutting-edge online fraud prevention tools:
The Secure Sockets Layer (SSL) technology used by LinkPoint Secure Payment Gateway allows for the real-time processing of payments while encrypting all sensitive data during transactions to prevent unauthorized viewing.
Address Verification Service: By comparing numerical data from your consumers with records held by banks that issued such cards, this service can help you spot unusual activities.
Card Validation Code: Are you aware that the back of credit cards has CVC or CVV codes? You can use these numbers to check whether the cards being used by your guests are valid.
Additionally, it is equally dependable and safe for visitors! Credit cards provide strong fraud protection, and charge reversals are simple. According to the US Truth in Lending Act, the maximum liability for fraudulent credit card use is $50. According to Nancy Parade, “credit card companies will allow cardholders to dispute fraudulent charges, which adds an extra layer of security for potential guests when they choose where to stay. Owners of vacation rentals who accept credit cards are seen favorably by their guests.
4. It’s practical for visitors and vacation homeowners
The process of paying for reservations is simple for visitors; all they have to do is pull out their credit card, enter their information, and presto! They won’t need to worry about writing checks, going to the bank, sitting in line at the post office, or doing any other activities that can add time to the booking process.
For those who own holiday homes, using credit cards enables you to:
- Enable rapid reservations, quickly approve visitors, and confirm reservations.
- Simple refund processes for cancellations
- Send email payment receipts automatically to confirm that the reservation has been made.
According to Parade, accepting credit card payments also enables customers to reserve their ideal holiday rental home in advance, regardless of whether they have saved up the whole amount of money for their trip. Customers can make a credit card deposit many months in advance to secure their reservation.
5. It gives your vacation rental property legitimacy.
There are many articles regarding bogus vacation rentals and how to prevent them available online. Most of them advise visitors to stay away from advertisements that call for bank transfers or wire transfers through Western Union and to only make reservations through listings that take credit cards directly through platforms like Stripe and PayPal.
As a result, by allowing online payments, you’ll demonstrate to your clients that they can rely on you, which will raise the credibility of your vacation rental company. We can only hope that will result in more booking conversions as well!
6. It enhances cash flow
Charges from your credit card are automatically transferred into your bank account. Your company will get payments promptly, so you won’t have to wait days for a check to arrive by mail (or be concerned about bad checks!) The ability to pay all of your expenses on schedule is vital.
7. It makes you stand out from the crowd.
Your industry is cutthroat, and since everyone is vying for the same thing, your properties must stand out. 62% of vacation homeowners rely on checks, cash, or other time-consuming manual payment processes. Join the 38% of people who are aware of how crucial taking credit card payments is!
8. The price is less than you think!
The main worry owners of holiday rentals have is that processing credit card payments cost money and you don’t always get paid in full. Fortunately, we can assure you that the expenses are reasonable given the advantages it offers.
A service like Stripe is simple to include in your current booking system. Every time you accept online payment, Stripe will charge you a flat percentage fee of 2.9% + $0.30 for US cards and an extra +1% for international cards. Check out their website because prices do differ based on your nation and location.
See? When you consider all the upcoming quick bookings, it’s not that awful. You could even pass the expense onto the visitor or only accept a portion of the reservation deposit—say, 50%—via credit cards and collect the balance in cash. By doing this, you will divide the cost of the credit card in half.
9. Setting it up is simple!
Anyone can set it up because it’s not as challenging as you may imagine. You can connect your Stripe account to your Lodgable account by first creating one of those accounts.
Through our safe booking system, Lodgable enables you to accept credit card payments from customers. Your visitors will be guided through a straightforward booking process, and all payments will be collected automatically.