You’re working hard as a host, promoting your property well, making your guests happy and securing loads of bookings. Good for you, now you’re making money from your Airbnb business you need to get to grips with how the Airbnb payment system works.
It’s time to choose the most appropriate method of receiving your Airbnb payout. Take a look at our top tips on how to make sure your Airbnb business runs smoothly and your earnings arrive in good time.
The Nuts and Bolts of the Airbnb Payment System
The first thing to keep in mind is that all payments between hosts and guests must take place within the Airbnb system. The Payments Terms of Service is in place to protect your Airbnb payouts. Any payments made outside of the Airbnb platform violate these terms – therefore you won’t be able to get a refund if, for instance, your guest cancels their reservation.
Airbnb usually releases your Airbnb payout within 24 hours of the guests’ scheduled check-in time. You won’t see that transaction immediately – you will have to wait around 3-5 days for the money to appear in your bank account, (dependent on the Airbnb payout method selected in the settings). If your guests are staying in your property for more than 28 days, Airbnb will release your payout in monthly installments on the date of your guests’ check-in.
If you’re new to Airbnb, you are going to have to master the art of patience! The system often holds your Airbnb host payment for about 30 days from the confirmation of your first reservation. It’s also worth remembering that you are unlikely to get paid on weekends or holidays, as many banks do not process transactions on these days.
Airbnb Payment – What You Need to Know
First off, you need to set up your Airbnb payment method. Just click on Account Settings and then Payment Preferences – where you will find Airbnb payment options listed for your country.
Airbnb offers several payout methods to choose from. We suggest you do your research – check out the fees, commission, and payment processing time of each method before you choose the best one for you. Here’s a quick guide to what you might find on offer:
ACH / Direct Deposit
Allows you to receive payments directly to your bank account. Simply enter your routing number and account number, (this can easily be found in your checkbook, on a bank statement or bank application). You will have to wait for a small deposit to arrive in your bank account, confirming that your payment method is ready to use.
This is an electronic payment service for transferring funds. Enter your account number or IBAN – your bank can provide this. Fees may apply, so always check with your bank.
Payoneer Bank Transfer/ Debit Card
Receive your Airbnb payout via Payoneer by typing your name as it appears on your official ID. Make sure that Payoneer has pre-approved your details. That way you can start using the system to receive your Airbnb host payments. Payoneer may apply extra charges for money withdrawals and other services.
If you are going to use PayPal, you need to make sure that your account is activated before you start using it on Airbnb.
Hosts rarely select this option for receiving their Airbnb payout. This is due to the fact that Western Union has comparatively high fees and some restricting conditions. However, if you feel like it’s your ideal choice, make sure you enter your official ID details.
Can I Use Multiple Payment Methods?
You can split your payment among different methods with the help of Routing Rules. You can also use Routing Rules to set a different Airbnb payment method for each listing in your account. To set up your Routing Rules simply click on Payout Preferences, find Payout Routing Rules and then click Add Payout Routing Rule to choose how you want to direct your payouts.
Remember: Just because you’ve successfully set up your payment method, it doesn’t mean that you will start receiving payments straight away! It can take around five business days to verify payment methods and obtain the information from Airbnb. Make sure you keep an eye out for the notification in your inbox, don’t skip or delete it by mistake!
Airbnb Host Service Fee
Finally, don’t forget about Airbnb host service fees. These are automatically deducted from your Airbnb payout. Bank charges and fees can also impact the amount that actually arrives in your bank account.
How to Resolve Airbnb Payment Issues
Occasionally a host will come across a problem related to receiving their Airbnb payout. There might be a delay, or the money may fail to appear at all! As a host, you need to keep your cool and play detective to find out what’s gone wrong (Airbnb Customer Service can help you with payment issues). It might be tricky to pinpoint the exact problem, but it could be one of these:
Incorrect PayPal Email Address
If you are using PayPal as your Airbnb payout method, make sure you enter your email address correctly. Carefully check your PayPal email address (including the symbols such as dots, numbers or hyphens – which can easily be forgotten)!
Incorrect Bank Account Number
Check your routing and bank account numbers. Have you missed a digit? If there is a typo in your routing or bank account number your bank verification will fail, resulting in a problem with payment.
Your Airbnb Account Has Not Been Verified
Have you received the email requesting you verify your account, and if so have you done that? If you have missed the email or forgot to activate it, that’s probably the cause of the issue. Go to your inbox to set things right.
Credit Card Fraud
Head over to your mailbox, are there any alerts or notifications regarding potential credit card fraud? If in doubt contact your bank to make sure there is nothing to worry about.