Airbnb Payment Options: Everything You Need to Know as a Host

Aug 24th, 2023

It’s common for rental managers with vacation properties to turn to the popular online platform Airbnb to fill their bookings. But what can you expect when it comes to Airbnb payment options for your bookings?

The reality is that Airbnb is the merchant of record (MOR) for bookings through their site and handles all payments. This might be good news for some (like those who only rent out a single room or property), but rental managers with an eye for business growth agree that they lose something valuable in the process: freedom and control. Instead, being your own MOR for direct bookings and other OTAs better lays the groundwork to run a thriving vacation rental business.

For more information on what you can expect from Airbnb payment options, this detailed guide will break it down for you and help you to see why direct booking may be the better choice.

Airbnb Payment Options for Guests

When it comes to the ease of paying for a vacation rental through Airbnb, guests have their choice of many common payment options. Most countries will allow for them to pay with any major credit card or a debit card that can easily be processed as a credit card. To this end, you can expect people to pay with Visa, Discover, MasterCard, American Express, and JCB.

Of course, there are other flexible options that enable people to spend their hard-earned money on a vacation rental as well.

Popular payment methods that are sweeping the nation are just as easily found on Airbnb. For example, guests can pay with both Apple Pay and Google Pay. PayPal is also a safe and verified option for booking a rental through the popular site.

As of 2023, guests cannot pay for an Airbnb booking with cryptocurrency.

Airbnb Payment Options for Hosts

One of the benefits of using Airbnb’s built-in booking system for hosts is the ease with which you can receive payment. Many people prefer the simplicity of a bank transfer, and this is definitely an option for Airbnb hosts who don’t mind entering their routing number and account number. You will only have to wait a little while for account verification, which can take anywhere from 2-10 days.

You can also opt to receive your payment via Fast Pay. This sends your money to a Visa or MasterCard debit card or a reloadable prepaid card that can be used in the United States. In a similar way, you can also have funds transferred to your PayPal account.

Other payment options for hosts include:

Payoneer prepaid debit MasterCard
International wire
Western Union

FAQs about Payment Options for Airbnb Hosts

With a detailed breakdown of where and how you can receive payments through Airbnb, it’s also key to answer some of your leading questions about when you can expect to receive payment and more.

Here are some frequently asked questions that might help you decide if Airbnb hosting is the right fit for you:

How Long Does It Take to Get Paid?

Airbnb usually only takes about 24 hours to release payment to you after the guest checks in to the Airbnb rental. After that, you will need to wait for the payment to fund to your bank account.

Fast Pay generally takes less than a half hour. PayPal, Western Union, and Payoneer prepaid debit MasterCard are almost as fast, showing up within one business day. Meanwhile, a bank transfer may take three to five business days and international wires could take up to one week.

Holidays, weekends, and transfer reviews to prevent fraud can also delay how quickly you receive payment.

Keep in mind that the financial institution or payout method you choose may charge additional fees, especially if you choose one of the quicker payment options. Fast Pay, for example, will deduct a 1.5% fee from each payout.

What Happens If a Guest Cancels?

Cancellations happen even under the best of circumstances, often for no reason related to your listing. Airbnb will notify you right away if you have a guest cancel, will unblock the dates so that they are now available, and will actually coordinate the refund on your behalf.

Guests are refunded based on your cancellation policy, both before or during their stay.

Keep in mind that first-time hosts may have their money tied up for thirty days following the confirmation of the reservation, even if they are owed a refund. If Airbnb must issue a refund to your guest, they will deduct the amount from future payouts until they have been able to collect the full amount.

How Much Does Airbnb Take?

As you might have already guessed, Airbnb does not handle all of your payment processing for free. They typically take a 3 percent processing fee.

Take Control of Your Payment Options with Direct Booking

If you are considering renting out properties on Airbnb, you’ll need to weigh whether it’s worth giving up control and freedom over your payment options. For small businesses or those who are just starting out, Airbnb offers a simple way to get started. However, property managers looking to scale their business should generally aim for 60 to 70+ percent of their business to come through direct bookings.

Direct booking as your own Merchant of Record puts you in charge of your money, your brand, and your reputation. Instead of paying a cut to Airbnb, you get to keep more money in your pocket, and you won’t have to wait around for Airbnb to release payments.

You also offer guests a better experience with more flexible payment methods and direct access to the processor for chargeback help, making them more likely to book a stay again in the future.

Ascent Payment Solutions provide the highest level of service, security, savings, and solutions so you can focus on your top priority: growing your business. We’ll help you get set up as the Merchant of Record with one of the largest and strongest banks in the US, then integrate directly into your payment gateway software.

With Ascent, it’s easy to collect and process payment for direct bookings and protect your margins while providing the best guest experience possible. Contact us today to learn more!