Airbnb sent me an email saying my account was elgible for early pay. Basically this new feature allows me to get paid 48 hours after a guest books, instead of waiting a day after they check in. It says each payment will have an Host Early Pay fee, but doesn't tell me how much the fee is. Does anyone know?
@Jude, if they charge 3% for a 90 days earlier payout, that's 12 % annual interest rate, way over most market rates. If it's a 14 days early payout, even at 1 %, that would be over a payday lender's rate. At 3% for 2 weeks, you can borrow from the mob too. - It's a feature often asked for by hosts, but it's only interesting if you get bookings long term in advance, at high price and you do not get credit from your bank.
If they are charging an additional 3% for early pay on top of the normal 3%, they're getting 6% from the host. If Airbnb is losing a few days/weeks interest on the funds, it would not amount to even 1/4 or 1/2 of 1%. It's a good economic proposition for them.
Thank you for answering my question about how much the fee is. For the person asking for a link, I think you have to be invited to join as my link has my userid details embedded in it.
The fact that this only applies to booking between 90 days and 14 days and not for long term bookings will stop me from signing up as most of my year is either booked up by long term bookings or more than 3 months in advance. It is for these bookings that I would appreciate being paid at the time of booking. And I do not see why I need to pay Airbnb even 1% for the privilege of having my booking fee when the guest books. I shall wait until they see sense and extend the terms and remove the cost.
Hmm, well my average ia a month out maybe less, but 1% for a month, that would be a very nice return. I would imagine whoever thought this up will be getting a nice bonus.
You do realise that it's probably costing Airbnb keep fees on deposit with interest rates at an all time low, so some genius has not only thought of a way turning a deficit into a surplus by charging the unsuspecting Host for something they should automatically get for nothing. Regards
Actually this applies not just to new bookings, but old as well.
I just activated mine today, and i just got an email with over $4,500 being transfered into my account, so i logged in here to check my account, and it's there, so not some scam email. And i only got one booking today, for Sept check in.
So that means the amount in process right now is for old bookings , not new.
Another thing to note though, i realized in the email that there were small amounts deducted, that is each booking seems to be charged that 3%, not a lump sum.
As in, if they were transfering say $4,000, i thought they would simply take 3% from that amount, but that's not the case, they take an average of $8 from each future booking that there are paying me early for, so when you add all that $8- $15 together, Airbnb just made a killing.
Some of those charges went as high as $18. Once this transfer is done, i will probably shut down early pay.
I received an email about the payment being processed within 2-5hrs of switching mine on, but basically same day.
Although it says the payment could take 6 days to clear, so it's still in process, not deposited yet.
I've switched it back off though. I got the jolt i sort of needed, so no more early pay for me. For now
Thanks for the thread here to bring this to my attention! I imagine it would work best with a strict cancellation policy. And it certainly could be helpful in a sudden household cash emergency. I certainly won't be turning it on regularly but I'm glad to have the option.
this is is my first time as a host and a guest said he has already paid for my accommodation. He is booked for next weekend but I did not give him any bank details so how does this work ?