Handling the various monetary transactions that go along with owning a rental property can be a challenge. But reaping the financial benefits of your vacation property doesn't have to be complicated, as long as you establish clear and organized policies regarding financial transactions. Owners ask us time and time again if it's really necessary to accept credit cards. Well ask yourself this: On your last vacation, how did you pay? Did you write checks for your airfare, lodging, groceries, breakfast, etc.?

More and more travelers pay (and expect to pay) by credit card than ever before. Sure, your current renters are okay paying by check. But what about the renters who don't even inquire because they look for "accept credit cards" in the property highlights.

By accepting credit cards, you'll be able to:

• Increase convenience for your renters. Credit cards offer a convenience for your renters. They can easily give you their credit card number over the phone and not have to worry about remembering to write out a check and mail it to you in a timely manner.

• Confirm bookings instantly. For you, you'll have no more waiting for “the check is in the mail” to verify that a booking is solid. You can instantly process all rental payments, security deposits and deposit refunds instantly over the Internet.

• Speed up your cash flow. No more waiting for the renter's check to clear your bank account. Funds processed through a credit card merchant account are generally available in your own bank account within 24-48 hrs.

• Build instant credibility. With today's uneasiness of transacting through cyberspace, accepting credit cards gives your renters added comfort that you and your property are legitimate.

• Catch credit card-only travelers. Some travelers limit their search to properties that accept credit cards. If you do not accept credit cards, they might skate right over your property listing.

• Ensure the safety of your business. Credit cards are by far the safest method for both you and your renters. They are immediate, convenient, traceable, and have limited liability since most credit card companies offer some level of identity and purchase protection.

• Ease last-minute bookings. By accepting credit cards, you can easily take last minute bookings or even take reservations while you are on the road. Close on a rental even if you are traveling and unable to receive your mail.

• Simplify international transactions. Avoid the inconvenience of renters having to obtain and send money abroad and dealing with exchange rates.

• Streamline your deposit refund process. When you accept credit cards, you simply credit the charges. That means you don't have to mail deposit refunds anymore.

• Compete in the online travel arena. Credit cards have become the universally accepted mechanism for purchasing travel. Vacationers expect to use a credit card. If you do not accept credit cards, your renters may look elsewhere.

The Drawbacks

• The Sign-Up Process. You have to fill out an application (quite similar to a loan application). But HomeAway and VRBO have streamlined the process when you use their merchant account services.

• The Cost. There are monthly fees, transaction fees and a one-time set-up charge (now though Jan 31, 2008 HomeAway and VRBO is waiving the set-up fee.) The good news is if you take just one more booking than you would have otherwise, the cost of those fees generally more than pay for themselves. Many owners who start to accept credit cards see an increase in bookings.

• The Risk of Chargebacks. When you accept credit cards from your renters, there is always the risk of chargebacks (although very rare). The key to winning a chargeback dispute is make sure your cancellation/refund policy clearly states all sales are final, no refunds and then again right above the signature line restate the policy.

Remember that the renter has spent hours, possibly days, looking for the ideal destination and property to rent. By the time you are contacted, the potential renter may be feeling frustrated and maybe apprehensive about remotely transferring money to someone they've never met. Presenting the renter with a set of solid and concise financial policies will help ease their concerns, and should also help reduce potential aggravation and potential problems for you. HomeAway.com has partnered with Payment Processing, Inc. to create a merchant account program especially for vacation rental owners.  Learn more or sign up for the HomeAway.com Credit Card Program today!

Why do you accept credit cards from travelers? "It just makes life easier not to have to hassle with checks."  --Cay C., Fort Lauderdale, FL.

How to Accept Payments from Your Vacation Rental Guests Establish a clear payment policy to transform financial transactions into major rewards.   How to Accept Security Deposits by Credit Card for Your Vacation Rental How to handle deposit payments from your vacation rental guests via credit card.   Merchant Credit Card Account Categories for Vacation Rental Owners Be aware of the protection (or lack thereof) provided by your merchant account and/or business category.   The Different Types of Vacation Rental Fees Definitions of common fees included in rental agreements.

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