Hospitable Is The Merchant of Record (MoR) For Vrbo Official Reservations
With the Vrbo Official Integration, Hospitable processes guest payments for your Vrbo bookings. This article explains how payments work, what fees apply, when you receive payouts, and how chargebacks, refunds, and taxes are handled.
Why Does Hospitable Process Payments for Vrbo?
When you connect Vrbo through any property management software (PMS), Vrbo stops processing guest payments. This is how Vrbo's integration model works — it is not specific to Hospitable. It applies to all PMS-connected listings on Vrbo.
As your PMS, Hospitable becomes the Merchant of Record (MoR) for your Vrbo bookings. This means:
Hospitable collects the guest's payment when they book
Hospitable sends payouts to you after check-in
Hospitable handles chargebacks and payment disputes on your behalf
Hospitable facilitates tax collection and remittance, where supported
The guest experience doesn't change — guests still book and pay on Vrbo. What changes is who processes the payment on the backend.
Guests will see a charge from "Hospitable" on their card, instead of "Vrbo". This is expected.
How Payments Work: The Two-Charge Structure
Guests will see "Hospitable" on their credit card or bank statement instead of "Vrbo" for the reservation charge. The Vrbo service fee still appears separately as a charge from Vrbo.
When a guest books your Vrbo listing, they see the following on their bank or credit card statement:
Hospitable — the reservation total (accommodation, cleaning fee, taxes, and any host fees)
Vrbo — the Vrbo traveller service fee
This is expected and is the same for all PMS-connected Vrbo listings, not just those using Hospitable. Both charges are relate to the same booking.
💡 Tip: Consider adding a note to your automated booking confirmation message letting guests know they may see "Hospitable" on their statement. This can reduce confusion and unnecessary inquiries. For example: "You may see a charge from 'Hospitable' on your bank statement — this is the payment for your stay, processed on our behalf."
Vrbo Official Reservation Commission Fees
The fee structure for Vrbo Official bookings is as follows:
Fee | Amount | Who charges it | How it's collected |
Vrbo commission | 5% per booking | Vrbo | Charged to your credit card on file with Vrbo (invoiced monthly) |
Payment processing fee (Hospitable MoR) | 3.9% | Hospitable | Deducted from your payout |
Payment processing fee (Stripe MoR) | ~3.9% (Stripe's standard rates apply) | You (via Stripe) | Deducted by Stripe from your payout |
What's included in Hospitable's 3.9% processing fee?
Payment processing
Chargeback protection (Hospitable defends and absorbs lost disputes)
Ability to charge upsells to the guest's card on file
Tax compliance facilitation (collection and remittance, where supported)
What about Vrbo's 3% processing fee?
Previously, Vrbo charged hosts a 3% payment processing fee in addition to their 5% commission. When you connect through a PMS, Vrbo no longer processes payments, so the 3% processing fee is removed. It is replaced by Hospitable's processing fee (or Stripe's equivalent if you choose to be your own Merchant of Record via Stripe).
Vrbo's 5% commission — credit card required
Vrbo collects its 5% commission separately. You must have a credit card on file in your Vrbo account. Vrbo charges this card after each booking and generates a monthly invoice.
⚠️ A credit card must be on file in your Vrbo account for the commission charges. This cannot be replaced with a bank account. If you manage properties for multiple owners, coordinate with owners on how commission charges are handled.
Vrbo's annual subscription
If you are currently on a Vrbo annual subscription plan (no per-booking commission), the official integration does not prevent you from keeping it. However, Vrbo has indicated they are not renewing annual subscriptions going forward. Existing annual plans may be honoured temporarily, but are likely not renewable.
Payment Service Options: Hospitable vs. Stripe
You have two options for who processes payments for your Vrbo bookings:
Option 1: Hospitable as Merchant of Record (recommended)
Hospitable processes all guest payments
3.9% processing fee is deducted from your payout
Chargeback protection included — Hospitable defends disputes and absorbs liability if lost
Tax collection and remittance facilitated where supported
Upsells are made easier, and can be charged to the guest's card on file
Option 2: You as Merchant of Record (via Stripe)
You connect your own Stripe account
Stripe's standard processing fees apply (approximately 2.9% + $0.30 per transaction)
You are responsible for chargebacks, payment disputes, and tax compliance
Hospitable charges a 1% service fee on Stripe transactions to cover integration costs
ℹ️ Most hosts choose Hospitable as Merchant of Record for the simplicity and chargeback protection. Choose Stripe if you need direct control over payment processing or have specific accounting requirements.
Can I Keep Vrbo As My Merchant of Record?
No. Vrbo does not offer Merchant of Record services for PMS-connected listings. The options are:
Using Hospitable as MoR
Managing payments yourself via Stripe
Disconnecting from a PMS entirely and managing Vrbo directly
Payout Timing
When are Vrbo reservations paid out to hosts?
Payouts for Vrbo Official bookings follow the same schedule as Direct Premium bookings:
Payouts are sent 24 hours after guest check-in
After initiation, funds typically take 3–5 business days to arrive in your bank account via ACH transfer
Total time from check-in to funds in your bank: approximately 4–6 business days
Last-minute bookings
For bookings made within approximately 4 days of check-in, the payout may be delayed by up to 3 additional days while the guest's payment fully clears.
Early payouts
Early payouts are not available. Payouts follow the 24-hours-after-check-in schedule.
Split Payouts
You can assign different bank accounts to different properties, so payouts go to the correct account for each listing. This works the same way as Direct Premium split payouts.
To configure:
Go to Settings → Payments & Payouts → Bank Accounts
Edit the bank account assignment for each property
See more here: Managing Payouts and Bank Accounts
Guest Payment Timing and Installments
Guests can pay for their Vrbo booking in the following ways:
Full payment at booking — the entire reservation amount is charged when the guest books
Installment payments — if configured in your booking policy, guests can pay in up to three installments
If installments are enabled:
The first payment is collected at booking
Subsequent payments are collected automatically on the scheduled dates
Guests receive email reminders before each upcoming payment
If a scheduled payment fails, the system retries during a grace period. If payment is still not collected, the booking may be automatically cancelled
ℹ️ Payment terms (installments) are configured in your booking policy settings, the same way as for Direct bookings.
Chargebacks and Fraud Protection
If Hospitable is your Merchant of Record:
Hospitable handles chargeback disputes on your behalf
Hospitable collects and submits evidence to the card issuer
If the dispute is lost, Hospitable absorbs the liability — you are protected
This is included in the 3.9% processing fee at no additional cost
If you are the Merchant of Record (via Stripe):
You are responsible for defending chargebacks
You absorb the financial loss if a dispute is lost
Stripe's standard dispute process applies
💡 Chargeback protection is one of the key benefits of using Hospitable as Merchant of Record. It removes the risk of unexpected losses from fraudulent or disputed charges.
Refunds and Cancellations
Refunds for Vrbo Official bookings work similarly to Direct Premium:
Cancellation policy applies — the refund amount depends on the cancellation policy you've set for the listing
Hospitable's processing fee: If a booking is fully refunded, the 3.9% processing fee is refunded. For partial refunds, part of the fee may be retained
Vrbo's commission: If a booking is fully refunded, Vrbo typically refunds the 5% commission. Contact Vrbo for details on partial cancellation refunds
Refund timing: Refunds are returned to the guest's original payment method and typically take 5–10 business days to appear
Refunds after payout
If you've already received your payout and a refund is issued, the refund amount is deducted from your next payout.
Taxes
When Hospitable is your Merchant of Record, Hospitable facilitates tax compliance:
Where Hospitable remits taxes: Hospitable collects applicable taxes from the guest and remits them to the relevant tax authority on your behalf. These taxes are deducted from your payout before it's sent
Where Hospitable does not yet remit taxes: Hospitable collects pass-through taxes and includes them in your payout for you to remit directly to the relevant tax authority
If Vrbo currently remits a tax that Hospitable does not: You may need to manually file that tax until Hospitable expands coverage
ℹ️ Tax remittance coverage is expanding. See Tax Collection and Remittance FAQs for further information on tax remittance.
Upsells
With Hospitable as your Merchant of Record, the guest's card is already on file. This enables one-click upsell purchases through the Guest Portal:
Early check-in, late checkout, travel insurance, and custom upsells
Guests can purchase upsells without re-entering payment details
Upsell payouts follow the same timing as booking payouts (24 hours after check-in, or 24 hours after purchase if the guest has already checked in)
A 7% host service fee applies to upsell transactions
See more here: Upsell Payouts & Billing FAQ
FAQs
Can I use Hospitable only for messaging and calendar, and not for payments?
Can I use Hospitable only for messaging and calendar, and not for payments?
No. With the full official connection, Hospitable manages messaging, calendar, listing details, payment processing, and payouts. This is a requirement from Vrbo for all property management software. Hospitable does not have a choice to opt out of being the Merchant of Record. Hosts can also use Stripe, but Vrbo will not manage payment processing for hosts who use a property management software.
What happens to payouts for existing reservations when I switch to the official integration?
What happens to payouts for existing reservations when I switch to the official integration?
Only reservations booked after you connect your Vrbo account to Hospitable on the Official Integration are processed by Hospitable. Existing reservations booked before that continue to be handled by Vrbo or your previous property management software.
Can I set up different payout accounts for different properties?
Can I set up different payout accounts for different properties?
Yes. Split payouts are available from launch. Assign different bank accounts to different properties under Settings → Payments & Payouts → Bank Accounts.
How is Vrbo's 5% commission charged?
How is Vrbo's 5% commission charged?
Vrbo charges the 5% commission to a credit card on your Vrbo account. Commissions are invoiced monthly, based on bookings confirmed the previous month. The commission is charged per booking after the guest's checkout.
Hosts must upload a valid credit card to their Vrbo account in order for this commission to be charged.
What if Vrbo currently remits a tax that Hospitable doesn't?
What if Vrbo currently remits a tax that Hospitable doesn't?
You may need to manually file and remit that tax until Hospitable expands coverage to your jurisdiction. Hospitable collects pass-through taxes and includes them in your payout for you to handle.
Will my guests notice anything different?
Will my guests notice anything different?
The booking experience on Vrbo doesn't change for guests. The main difference is that they will see "Hospitable" on their bank statement instead of "Vrbo" for the accommodation charge. The Vrbo service fee still appears separately.
What if a guest disputes a charge (chargeback)?
What if a guest disputes a charge (chargeback)?
If Hospitable is your Merchant of Record, Hospitable handles the dispute and absorbs the loss if the chargeback is upheld. If you use Stripe as MoR, you are responsible for defending and absorbing the chargeback.