OTAs
Vrbo Payment Options for Hosts
Vrbo is one of the most popular vacation rental websites, with over 48 million active monthly users and over 2 million listings worldwide. It's a great OTA platform to list your vacation rental home and reach a wider audience. In this blog, you will learn about Vrbo payment options for hosts to understand better how and when you will receive payments for your bookings.
Your first Vrbo booking just came through. Now what? When does the money land in your account, how much does Vrbo take, and what can you actually control about the payment process? Vrbo gives hosts more flexibility than most platforms. You can require full payment upfront or split it into installments before check-in.
The details matter, especially once you start connecting through a property management system, because that changes who handles the money and who's on the hook when something goes wrong.
What Are Vrbo Payment Options for Reservations?
Vrbo has its own payment system for payments and allows owners of vacation rental homes to list their property, receive online bookings, and send payment requests to guests. Vacation rental property owners are charged service fees for using the platform. The pay-per-booking fee is 5% on every confirmed booking, and an annual subscription fee is $699. However, the pay-per-subscription model is no longer available as a pricing plan for new Vrbo hosts or listings.
The Vrbo payment platform is fast and safe for travelers to pay for their bookings and for property owners to get paid. Travelers can pay with major credit cards such as Visa, MasterCard, and American Express. Vrbo uses encryption and advanced patented tokenization services to protect all transactions. Travelers who book and pay through the platform’s payment system are also eligible for the Book with Confidence Guarantee.
Vrbo allows hosts to set up their payment terms. You can specify how much a traveler must pay to confirm a booking. Requesting 100% of the payment amount when booking or setting up multiple payments that can be scheduled for future dates before check-in is possible.
If you allow your guests to make several payments, you need to specify the percentage a traveler must pay under each payment schedule. You also need to select the desired number of days the payment is due before check-in. When a guest books your property, they will see in your quote if you require one, two, or three payments for the booking.
Both methods have advantages, and it’s up to you to decide which suits you best and can help you maximize your bookings. But you also need to ensure that you provide your guests with the best experience, which requires careful management. You can achieve better results using short-term rental software like Hospitable. With Hospitable, you can automate your day-to-day routine and have more time to focus on growing your business.
Vrbo Payment to Owner: How Does It Work?
Short-term rental property owners can set up their payments account when they create their listing or renew their subscription. You must log in to your Vrbo account and select Payments to complete the setup. To start getting Vrbo payments to the owner from your bookings, you are required to provide information about
The country you conduct your banking in
Whether you are an individual STR property owner or a property manager acting on your client’s behalf
Your contact information
Your banking account information (routing number, account number, and currency)
Setting up your account will take only a few minutes, and you can accept payments safely and securely because the Vrbo payment platform uses advanced systems to detect and prevent fraud. Vrbo collects payments from guests as Merchant of Record and sends payouts directly to hosts, charging a 3% payment processing fee.
When Does Vrbo Pay Out?
Payouts are typically sent to Vrbo hosts approximately one business day after the guest checks in. Depending on your bank’s policies, you can expect the money to be available in your account 5 to 7 business days later. If you are new to Vrbo and your first booking is less than 30 days away, the payout is typically sent to your bank account 30 days after the guest’s payment.
Vrbo hosts can keep an eye on the income they’ve made across all their properties listed on this platform. You’ll be able to find payout dates in the payments section of the reservation in your Vrbo account. You’ll also be able to access the payout summary report that provides an overview of the received funds after the commission and fees are deducted.
Many people who own a vacation home use Vrbo to earn passive income, but some choose to become STR hosts to build a successful business. You’ll increase your chances of success if you also list your vacation rental property on such Vrbo alternatives as Airbnb and Booking.com. This way, you’ll reach more guests and get more bookings.
Managing listings on multiple platforms is rather time-consuming because you must constantly update your calendars and availability and ensure your pricing is correct on all channels. Vacation rental property management systems like Hospitable with a channel manager feature make this process much easier. With Hospitable, you can keep your calendars and pricing updated from one convenient location and be protected from double bookings.
Note: When you connect your listing to Vrbo through any API-connected property management software (PMS), Vrbo stops processing guest payments. Your PMS handles the transaction through your payment gateway, and you become the Merchant of Record. That means you handle chargebacks, payment disputes, and tax remittance. Currently, Hospitable is the only PMS that can take on the Merchant of Record role itself, so you don't have to. Hospitable handles chargebacks, dispute resolution, and collects and remits taxes in supported jurisdictions.
Hospitable has recently launched a new Vrbo Partner Connection that uses Vrbo's official API and makes Hospitable the source of truth for your Vrbo listing data, calendar, and settings. The Vrbo Partner Connection is available to hosts on all subscription plans who either have access to Direct Premium on Hospitable or have access to Stripe. Along with several operational improvements, the Vrbo Partner Connection also introduces a new payments and payouts experience.
With a direct Vrbo connection, Vrbo is the Merchant of Record. It collects guest payments, handles some of your taxes, and sends payouts directly to you, deducting 8% of the total amount received from the guest (5% pay-per-booking commission plus 3% payment processing fee).
If you connect to Vrbo through the Partner Connection using third-party property management software, your PMS collects the guest credit card details from Vrbo and processes payments via your payment processor. You become the Merchant of Record and are responsible for handling chargebacks, managing payment disputes, and remitting your taxes. Under this scenario, Vrbo charges only their pay-per-booking commission—5%, which is automatically deducted from your credit card for each booking. You receive your payouts from your payment processor, net of any payment processing fees.
Hospitable is different. With the Vrbo Partner Connection, Hospitable can act as the Merchant of Record for your Vrbo bookings. If you use Hospitable as the Merchant of Record, it processes guest payments and handles payouts to you, charging a 3.9% payment processing fee. This fee includes payment processing, chargeback management, chargeback loss protection, and tax collection and remittance support (it’s available in all 50 US states, the UK, and Australia). You also pay a 5% Vrbo pay-per-booking commission fee.
Currently, Hospitable supports Merchant of Record services for properties located in the United States, the United Kingdom, and Australia. So, hosts with properties in these countries can choose either Hospitable as Merchant of Record or Stripe. For properties outside these countries, the Vrbo Partner Connection may still be available through Stripe (if Stripe supports the property's country).
With the Vrbo Partner Connection using Stripe, you are the Merchant of Record, which means you are responsible for handling taxes and chargebacks. You pay a 5% Vrbo pay-per-booking commission, a 1% Hospitable service fee, and Stripe’s payment processing fees, which are typically around 2.9%.
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Common questions
How do Vrbo payments work for hosts?
When guests book and pay directly through Vrbo, Vrbo processes the payment as the Merchant of Record and sends the host a payout after deducting its fees. Hosts can require the full amount at booking or split the total into two or three scheduled payments due before check-in. With a direct Vrbo connection, hosts pay a 5% pay-per-booking commission and a 3% payment processing fee. The payment flow changes, however, when a property is connected through API-connected property management software.
When does Vrbo pay hosts?
Vrbo typically sends a host's payout approximately one business day after the guest checks in. Depending on the host's bank, the funds may take another 5 to 7 business days to become available in the account. For new hosts whose first booking is less than 30 days away, Vrbo typically sends the payout 30 days after the guest's payment. Hosts can check expected payout dates and payout summaries in the Payments section of their Vrbo account.
Who is the Merchant of Record for Vrbo bookings?
With a direct Vrbo connection, Vrbo is the Merchant of Record. It processes guest payments, handles some tax responsibilities, and sends payouts directly to the host. When you connect through most API-connected property management systems, you become the Merchant of Record instead. That makes you responsible for chargebacks, payment disputes, and tax remittance. Hospitable is currently the only PMS that can take on the Merchant of Record role itself for eligible Vrbo properties in the US, UK, and Australia.
What happens to Vrbo payments when you connect a PMS?
When you connect Vrbo through API-connected property management software, Vrbo stops processing guest payments. Your PMS receives the guest's payment details and processes the transaction through your payment gateway, making you the Merchant of Record. Under this setup, Vrbo charges its 5% pay-per-booking commission, while payment processing fees are charged by your payment processor. You are also responsible for chargebacks, payment disputes, and tax remittance unless you use Hospitable as the Merchant of Record.
What is the best way to process Vrbo payments through a PMS?
For hosts who want to avoid taking on Merchant of Record responsibilities, Hospitable offers a unique option. It is currently the only PMS that can act as the Merchant of Record for Vrbo bookings, processing guest payments and payouts while handling chargebacks, absorbing dispute losses, and supporting tax collection and remittance. Hospitable charges a 3.9% payment processing fee for this service, in addition to Vrbo's 5% pay-per-booking commission. The Merchant of Record service is currently available for properties in all 50 US states, the UK, and Australia.