When you connect your listings through the Vrbo Partner Connection, payment processing works differently than it does for listings managed directly in Vrbo.
For PMS-connected listings, Vrbo does not act as the Merchant of Record. Instead, guest payments are processed through Hospitable or your connected Stripe account, depending on your payment setup.
This article provides an overview of the payment experience for Vrbo Partner reservations and explains how payment processing, payouts, fees, taxes, refunds, and chargebacks are handled.
At a Glance
Here are the key things to know about payments for Vrbo Partner reservations:
Vrbo does not process payments for PMS-connected listings
Choose Hospitable or Stripe as your payment processor
Payment processor availability depends on the property's country
Properties in the US, UK, and Australia can choose between Hospitable and Stripe
Guest payments, payouts, refunds, taxes, and chargebacks depend on your payment processor
Support for guest payment terms, including installment payments, reminders, retries, and policy-based cancellation
A screenshot showing a Vrbo Partner reservation with payment, payout, and booking details in Hospitable
How Payments Work for Vrbo Partner Reservations
When a guest books a Vrbo listing connected through Hospitable, the reservation is still made on Vrbo.
However, payment processing is handled through Hospitable or your connected Stripe account, depending on your Merchant of Record setup.
As part of this process:
Guests continue to book through Vrbo
Payment collection is handled outside of Vrbo
Refunds and chargebacks follow your Merchant of Record configuration
Tax handling may differ from listings managed directly in Vrbo
Who Processes Guest Payments?
For PMS-connected Vrbo listings, Vrbo does not act as the Merchant of Record.
Hosts can choose between:
Hospitable as Merchant of Record
Stripe as Merchant of Record
Your Merchant of Record configuration affects:
Payment processing
Payouts
Chargeback responsibility
Tax handling
Upsell payments
Guest payment terms
Vrbo does not provide Merchant of Record services for PMS-connected listings.
For detailed information about Merchant of Record options and associated fees, see:
Eligibility and Supported Countries
To use the Vrbo Partner Connection, each property must have a supported payment processor.
Hospitable as Merchant of Record
Hospitable currently supports Merchant of Record services for properties located in:
United States
United Kingdom
Australia
Properties in these countries can choose between:
Hospitable as Merchant of Record
Stripe
Stripe
Properties located outside the United States, United Kingdom, and Australia may still be eligible for the Vrbo Partner Connection through Stripe.
Hosts can review Stripe's supported countries here: https://stripe.com/global
Unsupported Properties
If a property is located in a country supported by neither Hospitable nor Stripe, it cannot use the Vrbo Partner Connection.
Properties located in countries supported by neither Hospitable nor Stripe cannot process payments through the Vrbo Partner Connection and may become unavailable on Vrbo.
Hosts With Properties in Multiple Countries
Some hosts manage properties in multiple countries under the same Vrbo account.
For example:
A host with properties in the United States and Mexico can use the Vrbo Partner Connection because both properties have a supported payment processor available.
A host with properties in the United States and Iceland can connect the US property, but the Iceland property cannot use the Vrbo Partner Connection because neither Hospitable nor Stripe supports payment processing there.
If a property is not supported by either Hospitable or Stripe, it may need to be moved to a separate Vrbo account and remain on the Vrbo Legacy connection.
Review payment processor eligibility before upgrading if your Vrbo account contains properties in multiple countries.
Hospitable vs Stripe
The payment experience differs depending on which Merchant of Record option you choose.
Hospitable as Merchant of Record
When Hospitable acts as Merchant of Record:
Hospitable processes guest payments
Hospitable sends payouts
Hospitable manages chargeback disputes
Hospitable absorbs chargeback losses
Guest payment terms and installments are supported
Upsells can be charged directly to the guest's payment method
Tax compliance facilitation is available where supported
Stripe as Merchant of Record
When using Stripe:
Guest payments are processed through your Stripe account
Stripe sends payouts directly to your connected bank account
Stripe processing fees apply
You remain responsible for chargebacks and dispute management
You remain responsible for tax compliance and remittance obligations
When using Stripe, you are responsible for maintaining sufficient funds in your Stripe account to support refunds, disputes, and payment adjustments.
Fees and Commissions
Vrbo Partner reservations may include several different fee types depending on your setup.
These can include:
Vrbo booking commissions
Payment processing fees
Merchant of Record fees
The fees that apply depend on your payment configuration and whether Hospitable or Stripe is processing guest payments.
For a complete breakdown of fee structures, commission billing, subscription considerations, and Merchant of Record comparisons, see:
Payouts
Payouts depend on your Merchant of Record configuration.
When Using Hospitable
Hospitable sends payouts
Payouts are typically initiated 24 hours after check-in
Different properties can be assigned to different bank accounts
Refund adjustments may be deducted from future payouts
When Using Stripe
Stripe sends payouts directly to your connected bank account
Stripe controls payout timing
Hospitable does not control payout delivery or payout schedules
Refund recovery is managed through Stripe
For payout schedules, bank account setup, split payouts, installment payments, and supported payout regions, see:
Refunds, Cancellations, and Chargebacks
Refund amounts are determined by the reservation's cancellation policy and payment status.
Refund amounts depend on:
The reservation's cancellation policy
The payment status of the reservation
The Merchant of Record configuration
Depending on the situation:
Guests may receive a full refund
Guests may receive a partial refund
Refunds may be issued before or after a payout has been sent
Chargeback responsibility depends on your Merchant of Record setup.
Hospitable as Merchant of Record
Hospitable manages chargeback disputes and chargeback protection.
Stripe as Merchant of Record
Hosts remain responsible for dispute management and chargeback outcomes.
A large number of disputes or chargebacks may affect your Stripe account standing.
Taxes
Tax handling depends on:
The property's jurisdiction
Applicable tax requirements
Whether tax remittance is currently supported for that location
Your Merchant of Record setup
Tax responsibilities may differ between locations, and tax remittance coverage may vary by jurisdiction.
Tax collection and remittance requirements vary by location. Always verify your local tax obligations.
For detailed tax scenarios and remittance guidance, see:
Guest Payment Experience
Guests continue to book through Vrbo, but they may notice a different payment descriptor on their bank or credit card statement.
Guests may see a charge from "Hospitable" in addition to "Vrbo" for reservation-related payments. This is expected for PMS-connected listings.
Consider informing guests of this in your booking confirmation messaging to reduce confusion.
For more information about the guest experience, see:
Frequently Asked Questions
Can I keep Vrbo as the Merchant of Record?
No. Vrbo does not act as the Merchant of Record for PMS-connected listings.
Can I choose between Hospitable and Stripe?
Yes. Properties located in the United States, United Kingdom, and Australia can choose either Hospitable or Stripe.
Can I use Stripe outside the United States, United Kingdom, and Australia?
Yes, provided Stripe supports the country where the property is located.
What happens if a property is not supported by either Hospitable or Stripe?
That property cannot use the Vrbo Partner Connection and may need to remain on the Vrbo Legacy connection.
Can I use different payout accounts for different properties?
Yes. When using Hospitable as Merchant of Record, payout destinations can be assigned at the property level.
What happens if a guest disputes a charge?
Chargeback handling depends on your Merchant of Record setup. Hospitable manages disputes when acting as Merchant of Record. Stripe users are responsible for dispute management.
How are taxes handled?
Tax handling depends on the property's location and your payment configuration.
Will guests notice any changes?
Most of the booking experience remains the same. The primary difference guests may notice is that payment-related charges can appear as "Hospitable" on their statement.