Payments

[Jennifer414]

I use Air BnB both as a host and a traveler.  Here is what I comprehend and I'm wondering if I'm on track.

If I book a place, I get charged right away.

If I have a guest in my home, I receive payment the day they show up.

So Air BnB makes money on the interest between the time they receive the funds and the payout.

Anyone else come to that same conclusion?

Jen

[Cynthia-and-Chris1]

Yep.  But also, this process protects both the host and the guest.  Hosts are assured guests have paid when their reservation is confirmed and guests are assured the host isn't going to just take the money and run between the time of booking and the start of the reservation.

[Wendy-and-Frank0]

I don't know if the traveler's credit card is charged right away.

There may be a hold on it but ABB hasn't collected the money.

So I doubt that ABB is holding anything at all.

This is the way hotels operate.

[Cynthia-and-Chris1]

@Wendy-and-Frank0  No, actually the gusts IS charged the whole amount up front - not just a hold like some hotels (although most hotels I've booked recently have moved to actually charging up front if you want the "lower" rate).  We just booked a trip to Phoenix and the whole thing is already charged fully to our card.

[Wendy-and-Frank0]

That's good to know, @Cynthia-and-Chris1.  Seems to be in violation of credit card banking rules (no payment can be collected prior to goods or services being rendered which is why a store won't charge your card until your item is "shipped") but we live in crazy times and I can never keep up with the changes.

[Dorina3]

Cynthia,i woukld call airbnb and ask about this.

im preety sure they just put a hold on a credit card until one day prior to arrival.They want to make sure there are money on that credit card to pay us the day of their arrival .

Which makes perfect sense .

[Cynthia-and-Chris1]

Definitely a full charge on my credit card, which is correct.  Airbnb rentals are much like buying an airline ticket - they don't just put a hold on your card until the time of the flight - they charge you up front.

Read more here:  https://www.airbnb.com/help/article/92/when-am-i-charged-for-a-reservation

[Lawrene0]

I know everyone's situation is different, and I am lucky that travel is part of my work, but I cannot recommend highly enough to hosts to travel as a guest at least once. Close down and take a weekend away if there is any way you can swing it.

Suddenly certain things become clear. You see the review process from the guest perspective, and you stop wondering what they were thinking with odd comments. 

You see the payment process from both sides. (Yes, guests pay immediately and hosts are paid after the guests arrive, as @Cynthia-and-Chris1 have outlined. The interest Airbnb makes holding those funds is just fine with me, @Jennifer414, a small price for never having to mention money ever. Ever at all.)

Also, it's fun. 

[Annette33]

hi @Lawrene0 , just wish I could give your contributions here in the forum more than just one thumbs up! Right "on the money" and always sensible 🙂  So I think I should advise Airbnb to introduce a more nuanced system here for our thumbs up.....just kidding, it would create another uproar!