The ultimate guide to choosing a payment processor that powers your STR growth
"If you can automate payments and disbursements, that’s one less headache for you to worry about. It lets you focus on what you’re really good at—creating amazing guest experiences." — Chris Andrews, Senior Director of Global Partnerships at Yapstone.
In this episode of STR Booked, Chris Andrews breaks down the complexities of payment processing for short-term rental businesses. From understanding how payments flow through different systems to the importance of cash flow management, Chris provides a roadmap for choosing the right payment partner. Learn how specialised payment processors can help streamline operations, reduce risk, and ultimately improve your guest experiences.
Key takeaways:
- Why payment processors matter
A payment processor is critical to ensuring smooth transactions between your guests and your bank. It handles everything from booking deposits to final payments, ensuring you're paid on time while managing the risk between booking and guest stay.
"It’s a small part of the journey, but if payments fail, your entire booking process can collapse." - The importance of cash flow in STR businesses
For newer short-term rental businesses, waiting months to be paid after a booking can cause financial strain. Chris highlights why working with a processor that offers early payouts can make a significant difference in managing cash flow.
"Cash flow is king. You need to ensure that you're receiving money as early as possible to maintain liquidity." - Disbursements and vendor payments
A specialised payment partner can handle more than just guest payments. Chris explains how automating disbursements to vendors like cleaners or maintenance teams can save time and reduce stress.
"If your vendors aren’t paid on time, it can hurt your business. Automating this ensures everyone gets what they need, when they need it." - Choosing the right payment partner
When evaluating payment processors, Chris advises focusing on the onboarding process, ease of integration, and whether the partner understands the specific needs of the short-term rental market.
"Look for a payment processor who specialises in your industry. They’ll understand the risks and nuances, which can save you headaches down the line." - Managing risk and reserves
Risk management is critical in the STR space, especially with long lead times between bookings and check-ins. Chris shares how Yapstone’s understanding of the industry allows for more flexible terms compared to generic providers.
"We know the business metrics, so our risk tolerance is better aligned with your business needs."
Links mentioned in this episode:
- Yapstone
- Contact Chris Andrews: candrews@yapstone.com | +44 7956 823036
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STR Booked is powered by Yapstone (www.yapstone.com), payment processing for short-term vacation rentals.
STR Booked is powered by Yapstone (www.yapstone.com), payment processing for short-term vacation rentals.
