Direct bookings
Payments and deposits for direct bookings: options, costs and risks for independent properties
WebRešenje PR / DirectBalkan ·
Short answer
On a direct booking, the property decides when and how the guest pays, and carries the work and risk that an online travel agency (OTA) would otherwise handle. The usual options are full prepayment, a deposit with the balance later, a card held as a guarantee, or payment on arrival. Choosing between them comes down to three questions:
- How much cancellation and no-show risk you want to carry;
- what the payment costs in provider fees, currency conversion and disputes;
- which rules apply, which differ between EU and non-EU countries and between payment providers.
Whatever you choose, state the payment and cancellation terms clearly before the guest books. That protects both sides, and it is the evidence that matters if a payment is later disputed.
What changes when the booking is direct
On the large OTAs, payment is part of the platform. Airbnb collects the full cost of a reservation from the guest, with few exceptions, and typically pays the host out shortly after check-in. Booking.com either lets the property charge the guest itself, under a prepayment policy the property sets, or facilitates the guest payment through Payments by Booking.com, paying the property by bank transfer or virtual credit card where that service is available.
On a direct booking there is no platform in between. The property, together with its payment provider (the company that processes card or other payments for it), decides how payment is taken, pays the processing fees, handles refunds and answers disputes.
The main options
| Option | How it works | Strengths | Weaknesses |
|---|---|---|---|
| Full prepayment | The guest pays the whole stay when booking | No payment risk at arrival; cancellations handled by your policy | Full refund handling if you cancel or the policy allows it; some guests prefer to pay less upfront |
| Deposit and balance | Part when booking, the rest before or at arrival | Commits the guest without a large upfront payment | Two payments to track; the balance can still fail |
| Card guarantee | Card details saved through the provider, charged only under your stated policy (for example a no-show) | Familiar to guests; nothing charged in advance | The later charge can fail or be disputed; card data must be handled securely |
| Bank transfer | The guest transfers the deposit or full amount | Low or no card fees for the property | Slower, manual matching, cross-border transfer and conversion costs for the guest |
| Pay on arrival | Cash or card at the property | Simplest for the guest | No protection against no-shows or late cancellations |
Many properties combine them: for example a deposit for peak dates and pay on arrival for low-season stays booked a few days ahead. How seasonal demand changes the picture is covered in Seasonality and channel mix.
What payments cost
- Processing fees. Card providers typically charge a fee per successful payment, and some charge more for international cards or when currency conversion is needed. Take the figures from your own provider’s current pricing.
- Currency conversion. Croatia, Greece, Slovenia and, since 1 January 2026, Bulgaria use the euro; Montenegro also uses the euro, without being in the euro area. Romania, Serbia, Bosnia and Herzegovina, North Macedonia and Albania have their own currencies. Pricing in one currency and settling in another can create conversion costs for you or the guest.
- Refunds and disputes. Refunds add handling work, and a disputed payment can carry a separate dispute fee.
These belong with the other direct-channel costs in Effective cost of distribution.
Which payment providers can serve you
Provider coverage differs across the region, so start by checking which providers accept businesses in your country. At the time of writing (October 2026), Stripe's list of supported countries includes Bulgaria, Croatia, Greece, Romania and Slovenia but not Albania, Bosnia and Herzegovina, Montenegro, North Macedonia or Serbia. PayPal lists all ten countries, but what an account can do (for example receiving business payments and withdrawing them) can differ by country. Local banks and regional providers may also be options. Check each provider's current country list and terms rather than relying on a general list.
Card authentication in the EU
In the European Union, the Payment Services Directive (PSD2) requires strong customer authentication (SCA) for most online card payments: the guest confirms the payment with two or more independent factors (something they know, have or are), for example in their banking app. The obligation sits with the banks and payment providers, but it shapes how a booking flow has to work. In practice:
- Online prepayments and deposits usually go through the card issuer's authentication step.
- A card saved as a guarantee and charged later (for a no-show, for example) needs authentication when the guest gives that permission at booking; the later charge can then be initiated by the property under the agreed terms, usually without the guest authenticating again. A payment provider's saved-card feature is designed for this.
- Card details taken by phone or email and typed in by staff are not automatically outside these rules. The European Banking Authority has said that card payments keyed in by the payee still require authentication; how your provider treats them is something to confirm with it.
- Outside the EU, or where the property's payment provider is outside the EU, the rules and the provider's approach can differ.
The EU is revising these rules (a new Payment Services Directive and a Payment Services Regulation). At the time of writing (October 2026) the reform had not been adopted, so this section describes PSD2 as it applies today.
Handling card details safely
Any business that stores, processes or transmits card data falls under the card industry's security standard, PCI DSS, which card schemes and payment providers apply to merchants. The security code on the back of a card must not be kept after the payment is authorised, even encrypted. The simplest way to stay on the safe side is not to hold card numbers at all: use the provider's payment page or saved-card feature, and don't ask guests to send card details by email or message.
Disputes and chargebacks
A guest can dispute a card payment with their card issuer. The payment is typically reversed while the dispute runs, the cardholder's bank decides the outcome, and providers commonly charge a dispute fee. For reservations, the period in which a guest can dispute can run from the stay date rather than the payment date. A cancellation policy that was clearly shown and accepted before payment is among the most useful evidence. Keep a record of which terms each guest accepted.
Cancellation, deposits and the law
- No EU cooling-off period for dated stays. EU consumer law gives consumers a 14-day right of withdrawal for many distance contracts, but it does not apply to accommodation for a specific date or period, such as a hotel or holiday-home booking (see the European Commission’s Your Europe guide).
- Cancellation terms come from the contract and national law. The European Commission notes that EU consumer law does not regulate the conditions and consequences of cancelling an individual accommodation booking: they depend on national contract law and the terms of the contract, including the stated cancellation policy. Terms that are unfair can be non-binding on consumers.
- Card surcharges are restricted. In the EU, a surcharge for paying with most consumer credit and debit cards is not allowed, and where a payment fee is permitted it may not exceed what the method costs the property; national rules can go further (see Your Europe).
- Non-EU countries have their own rules. Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia have their own consumer, payment and contract law, which this article doesn't summarise.
Which rules apply to a particular booking can depend on where the property is, where the guest lives and which provider processes the payment. Check the position for your country, ideally with a local adviser, before setting deposit, cancellation or surcharge terms.
A practical setup for a small property
- Choose a payment provider that accepts businesses in your country and pays out in a currency that suits you.
- Take payments through the provider's own payment page or booking-engine integration, not by collecting card numbers yourself.
- Decide your deposit and cancellation terms per season, and write them in plain language.
- Show the total price, payment schedule and cancellation terms before the guest commits, and keep a record of acceptance.
- Add the payment costs to your direct-channel costs and review them after each season.
Where DirectBalkan fits
How guests will pay for bookings through DirectBalkan, and through which payment provider, is still being designed; Product Status shows where it stands. A DirectBalkan subscription is billed separately from guest payments, and DirectBalkan takes no commission on bookings; payment-provider fees are separate (see How DirectBalkan pricing works).
Summary: Pick a payment model per season that balances no-show risk, cost and guest convenience; take card payments through a provider rather than holding card data; show terms before booking. EU rules on card authentication, withdrawal and surcharges are summarised here; non-EU rules differ and need a local check.
