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FAQs & Troubleshooting - Direct
FAQs & Troubleshooting - Direct

In this article, we answer some of the most commonly asked questions related to Direct bookings.

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Written by Assistant
Updated over a week ago

Here are some questions that we see regularly. We want you to immediately get an answer, so see if your question is answered here before contacting us!

Why has my payout method yet to be verified?

There are a few reasons why payout verification could take longer than usual. These are the most frequent that we see:

  • You have yet to nominate all required decision-makers. At least one signatory, one controller, and one owner must be named in this section. One person can occupy all three roles.

  • You could be missing required documents. If you have chosen manual verification of your bank account, you are required to provide a copy of your bank statement and an email or letter from your bank, among others. Missing or incorrect documentation can lead to delays.

  • You've selected the wrong company type. Most short-term rental companies should select Private Company for this field.

Once submitted, verification usually takes only a few minutes. However, it can take 1-2 business days. If you have waited longer than 3 business days, please get in touch with our support team.

What’s the difference between Direct Basic and Direct Premium?

Direct Basic is the “just the payment processing” option, primarily for hosts that already have experience in taking direct bookings. You can use our Direct websites and booking widget, but you need to connect your own Stripe account. This means you pay your own payment processing fees, you are liable for chargebacks, and you need to keep up with the various taxes for all of your properties. There are also no integrated solutions for guest vetting and damage protection.

Direct Premium is the fully featured package. Hospitable acts as the merchant of record for payment processing while also handling tax calculations on your behalf. Any payments received are paid out to an account of your choosing. Guest vetting and damage protection are also included.

What does it mean when Hospitable is the Merchant of Record?

As the merchant of record, Hospitable processes the payment, accepts liability for refunds and chargebacks, covers costs associated with cancellations, provides customer support during the booking process, and in general is responsible for the quality of the marketplace experience.

Chargeback liability can be especially important for smaller-scale hosts, where a single chargeback against a small volume of transactions could trigger consequences with a payment service provider. Instead, Hospitable can spread the risk and liability of chargebacks across a large client base, so occasional chargebacks don’t restrict your ability to keep processing payments.

How does Direct Premium compare with OTAs on price?

Direct Premium is a hybrid between an Online Travel Agent like Airbnb and the do-it-yourself direct booking options out there that require a lot of setup and leave you bearing all the risk.

Similar to OTAs, Direct Premium helps hosts manage risk by investing in things like Merchant of Record liability, guest vetting, and damage protection on every reservation.

Unlike OTAs, we don’t pass on the costs of big-budget advertising campaigns to you and your guests.

So how do we stack up? Let’s compare direct booking versus OTAs.

In our price comparisons, Direct Premium can save you:

  • 14-27% on a 5-day booking

  • 21-46% on a 20-day booking

Just so you know, Direct Premium performs best on larger bookings. If you generally get < $100 bookings, you are likely a better candidate for Direct Basic.

How are taxes managed?

Hospitable collects applicable taxes from the guest and passes them through to you with the payout. For Direct Basic, you need to enter your own taxes for each property. For Premium, we will calculate them for you and update them when there are changes.

In the future, we will start filing and remitting for Premium hosts in a limited number of jurisdictions where 1) we are legally able to do so and 2) where it makes business sense for us to do so. For now, filing and remitting taxes are your responsibility. Premium users may be required to sign regular affidavits that they are properly remitting the taxes that have been passed through to them.

You can learn more about how Hospitable handles taxes in this article.

You are responsible for filing and remitting your taxes to the appropriate jurisdiction in a timely manner (most jurisdictions are monthly filings).

When do I get paid out?

For Direct Premium, we make an ACH transfer to your bank account 24 hours after check-in or when the payment settles, whichever comes later. If a guest books within four days of their check-in, the funds may not be available when the guest checks-in, in which case we will show you the settlement date, which is your payout date for that booking.

For Direct Basic, you are in charge of your payouts. We strongly advise you to keep funds in reserve to cover liability for cancellations, refunds, and chargebacks.

What’s included in Premium damage protection?

  • Accidental and malicious damage

  • Damage due to theft

  • Damage to belongings/contents

  • Damage to common/shared areas

What’s not covered?

  • General wear and tear/cosmetic damage

  • Damage not caused directly by a guest

  • Bodily injury suffered by a guest or host

Damage protection is provided by Superhog and covers upto US$5M. You can find more details regarding the damage protection plan on their site.

Why isn't there a "Direct" listing showing in my property?

We will create a Direct listing as soon as you receive your first reservation for that property.

Can I display reviews from Airbnb on my Direct booking site?

This isn't currently supported but has been raised as a feature request. You can vote for it here!

Do you support payment processing for Direct bookings?

Payment processing is now available for those on Direct Basic or Premium plans (currently only available in the US, UK Australia). We will continue to roll this out to other markets in the near future, with Canada at the top of our list. Check out our article here for all the info and updates.

Can a Direct guest leave a review?

No, this isn't currently supported but has been raised as a feature request. You can vote for it here!

How long does it take for my Direct site to be up and running? / Why isn't my Direct site working?

Once you've completed your setup and hit Publish, we start working on issuing your site with an SSL certificate. This can take up to 24 hours but is usually completed within 30 minutes.

If you have set up your Direct site with a custom domain, please make sure you set up your DNS records correctly with your provider. Take a look at this article for the information you need to do this.

If you've been waiting for longer than 24 hours, please get in touch with us.

Which payment processors can be used for Direct Basic?

Stripe is currently our only supported payment processor for Direct Basic. Basic is available in all countries where Stripe is supported.

If Stripe is not available in your country, you will be unable to use Direct Basic at present. We have a Lite version of Direct that does not include payment processing, so it is just your Direct website and booking requests, with payments taken off platform. Lite is only available for hosts with properties in regions not supported by Stripe.

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