What-do-you-pay-for-your-payments

Some hoteliers prefer to get paid at check-in, others at check-out. Or perhaps have the OTA charge the booker and you collect the amount through a Virtual Credit Card (VCC) later on? These days, you simply get paid however you like. But what do you pay for those payments, actually? 

Most independent hoteliers I asked this question answered alike: not a clue. Which is not that strange, as we are all used to clear cost for services we use, much unlike costs of payments at typical banks. After all, OTA commission costs are crystal clear, as is your rent and a bag of coffee beans. Which of course comes in handy while running a business with predictable, optimised costs. But did you check what your bank exactly held back on your credit card batch payouts? Go ahead and check your banks batch payment statements including held back costs per transaction. One thing is for sure: you will find hugely differing costs for exactly the same reservation amount, over and over again. 

 

So how does that work? 
It is due to the payment card that was used to pay and due to the traditionally complex, multi-tier cost structure for credit card payments. The bank that issued the used card and the credit card firm take a fair share of the transactional fees, but most of it ends up in the pockets of your bank (or acquirer, or Payment Service Provider in financial lingo). And these costs can easily differ by a multiple of 5+, dependent on which card was used. 

Of course, you have considered a long time ago whether to accept Amex payments due to its reputation being expensive to accept. But did you know that a corporate or non-European issued Visa / Mastercard are probably as expensive to charge? And moreover, your OTA’s VCC is much more expensive to charge than that “expensive” Amex or any other card? Really, have a look at that bank batch payout statement.

Good for you to know: RoomRaccoon’s Charge Buttons in both the PMS and Booking Engine not only add ease and upgraded security to your payments, it also significantly lowers the cost and makes the cost of payments as crisp as a kilo of coffee again. With RoomRaccoon, you’ll be paying 1,6% + €0,25. Over all of your payments as long as the card was issued in Europe. For non-European cards, that’s fixed at 3,1% + €0,25 (seems the EU did a good job capping payment costs?). Germany issued Amex? 1,6% + €0,25. VCC? 1,6% + €0,25. Netherlands issued corporate Visa? 1.6%+ €0,25!

RoomRaccoon is the easiest to use, most complete and fastest growing All-in-One solution for independent hoteliers around the globe and we love challenging traditional banks that justify delivering card charging services merely, because they seem to be the most logical address. Personally, I am very motivated to make your payments transparent and understandable. Besides that it’s my goal to take away any unnecessary costs.
Try us.


Tymen van Dyl

Co-Founder RoomRaccoon