Direct booking payments in Hospitable follow a two-step process: authorization and capture. This allows hosts to review booking requests before any funds are collected.
This article explains how payments are handled from the moment a guest submits a booking request through confirmation and scheduled payments.
Payment Flow Overview
For standard direct bookings, payments follow this sequence:
Guest submits a booking request and enters payment details
Payment method is authorized (no charge yet)
Host reviews and accepts the booking
Payment is captured based on configured payment terms
Future scheduled payments are collected automatically (if applicable)
Authorization vs Capture
Authorization (at booking request)
When a guest submits a booking request:
Their payment method is authorized
No funds are collected at this stage
The authorization ensures the card is valid and has sufficient funds
Guests are not charged when submitting a booking request. Funds are only captured after the booking is accepted.
Capture (after acceptance)
Once the host accepts the booking:
The booking is confirmed
Hospitable captures the payment according to your payment terms
Depending on your setup:
The full amount may be charged immediately, or
Only the first scheduled payment is collected
Payment Terms and Scheduling
Payment collection is controlled by your configured payment terms.
This determines:
Whether guests pay in full or in installments
When payments are due
How much is collected at each stage
If multiple payments are scheduled:
Future payments are automatically charged on their due dates
The same payment method is used unless updated
Also see: Direct Payment Terms and Payment Terms Scheduling
Custom Quotes and Payment Links
If you send a custom quote:
The guest receives a payment link
The guest completes payment before the booking is confirmed
There is no separate approval step
This flow differs from standard booking requests:
Payment is completed upfront
The booking is confirmed immediately after successful payment
Custom quotes require payment to confirm the booking. Dates are not secured until payment is completed.
Email sent to a guest with a Confirm booking and pay button for a direct booking
What Happens If a Booking Is Not Accepted
If a booking request is declined or expires:
The payment authorization is released
No charge is captured
This ensures guests are not charged for unconfirmed bookings.
Payment Failures
If a payment fails at the time of capture or during a scheduled payment:
Hospitable may retry the payment
The guest may be prompted to update their payment method
The booking may be impacted depending on your settings
Also see: Direct Booking Payment Failures
Taxes and Fees
The total amount charged to guests includes:
Nightly rates
Cleaning and additional fees
Taxes
Taxes are always calculated and included in the total price shown during checkout.
Also see: Taxes for Direct Bookings
Key Things to Know
Payment details are collected at the time of booking request
Payments are only captured after the booking is accepted
Payment timing is controlled by your payment terms
Scheduled payments are collected automatically
Custom quotes require payment to confirm the booking
For standard booking requests, authorization happens first and capture only occurs after acceptance.