There are many companies that offer merchant credit card accounts. You can go to your local bank, lending institution, or even to the Internet to find them. Be sure to research and find the one that best suits your needs. Whichever merchant account you choose, you need to make sure your vacation rental business is categorized properly.

About 6 to 8 years ago, vacation rentals were lumped into a “high risk” category with some dicey and even scandalous operations. Today, a few companies offer credit card merchant programs that are specifically designed for vacation homeowners and will not be considered “high risk” transactions. The result is lower transaction fees and greater protection.

If you are using a merchant account that places your vacation rental business under the “lodging” category, here is how you could be affected:

• Cancellation Period: You cannot require more than 72 hours for cancelling. Vacation rental homeowners typically require 30, 60, or even 90 days for cancellations! This means that someone could cancel 4 days prior to their reservation, and you would have to refund their entire booking with no penalty.

• Unclaimed Accommodations: If your renter does not show up on the designated arrival day, you must hold the room until the following day. Then when you file a transaction receipt for the “no show,” you are only eligible to receive payment for that one night versus the full week (or the length of their intended stay.)

Clearly your options for recourse under the lodging category are slim. The vacation rental category, on the other hand, is set up as “No Refunds, No Exchanges, Final Sale.” Just like when we buy merchandise from a retail store and must sign to acknowledge a final sale, this type of account will provide protection for potential cancellations, chargebacks, and refund issues.

For added protection, make sure your contracts and rental agreements are clear and explicit. Please see our Sample Agreement which reiterates the cancellation and refund policies just above the signature line in more than one spot. * HomeAway.com has partnered with Payment Processing, Inc. to provide a credit card merchant account with added protection for vacation rental owners. Click here for more information.

Learn more about accepting credit cards at your vacation rental:

	The Scoop on Credit Cards Ten good reasons to reconsider accepting them from your guests.
	Accepting Security Deposits By Credit Card How to handle deposit payments by credit card.
	Should You Accept Credit Cards? For many renters, the deciding factor of which property to rent might just come down to the one that accepts credit cards.
	6 Reasons to Accept Credit Cards More than a just convenience for your renters-- it makes your life much easier!

Still confused about credit cards?  Ask your questions or share your feedback with the Owner Community.