What is an eCheck? Is it safe?
I love eCheck. It’s simple, safe, and it helps Vacation Rental (VR) owners keep their costs down, which translates to lower overall rates to you, the traveller.
If you’ve never heard of eCheck before, understanding it is simple. It’s just like writing a paper check, but we do it without the paper.
In the Vacation Rental business, reservations usually require some kind of payment before receiving a confirmation. There are several popular ways to make payments for your rental:
PAPER CHECKS or MONEY ORDERS: If you typically pay for your Vacation Rental with a paper check or money order, then paying by eCheck instead means that you don’t have to wait a week to get a confirmation on your reservation! The owner/manager of the condo doesn’t worry about whether or not the check has been mailed, and you don’t have to worry about someone else booking it out from under you if the mail is delayed. 🙂
To make sure that your payment is processed immediately, and that your reservation is booked without delay, you may prefer to use a bankcard or an eCheck for payment.
DEBIT CARDS: A payment by Debit Card will withdraw the money directly from your bank at the time of the transaction. It works just like a check does when it’s cashed. No bills to pay later. So what’s the difference in paying by Debit Card or eCheck? Very little to you, but sometimes everything to the person receiving the money. Debit cards are processed like credit cards. Sometimes there’s a slightly lower fee, but typically it’s the same as credit cards which can be as much as 3.5%-4% of the total transaction cost. eChecks are often free or a low fixed or low percentage cost, making them a cost savings to the owner. But for you, the guest, they post to your bank account the same way.
CREDIT CARDS: A credit card payment lets you pay the merchant now, and then re-pay the bank later. Paying by credit card is a higher cost to the VR owner than any other form of payment. If you have ever wondered why credit card companies offer you rewards programs, it’s because the merchants pay for it. Typically, different types of cards have different fees. Rewards program cards (called qualified” cards) have a higher % fee than non-rewards cards (called “non-qualified”). For every % in rewards you receive, it’s likely that the VR owner is paying twice that in fees. American Express has the highest fee rate, which is why many VR owners simply don’t accept it in their credit card program.
PayPal is a third-party online service that allows you to pay an individual or company by bank card or eCheck. Some VR owners will use PayPal as a way to accept credit card payments, but using Paypal means higher costs to owners because PayPal typically has higher processing fees.
eCHECKS: eChecks have been around for decades. They are a digital version of the old paper checks. eChecks are just as safe as paper checks because they follow all of the same protections and regulations, but eChecks allow you to get immediate credit for your payment – no waiting for paper checks to be mailed and cashed, and no cost for the check, the envelope, or the postage. It’s an immediate transaction, just like a debit or credit card. That means an immediate confirmation of your reservation as well!
Because of the savings they provide, Premium Beach Condos offers the PAYMENT PLAN INCENTIVE to encourage our guests to use the eCheck payments. This helps us to keep our rates as low as possible, and to offer additional discounts to our returning guests. With Premium Beach Condos you can reserve the condo with a $300 deposit, and then make automated payments 60 and 30 days prior to arrival.
Note: Some banks take longer to transfer funds from eCheck payments than they take to transfer credit card funds, which is why some VR owners will not accept eChecks when paying just prior to your arrival date. But if eCheck payments are accepted, consider using them instead of your debit card!
For more information about eChecks, you can check out this website: Tell me more about eCheck