Holiday Let Payment Processing for UK Owners

Taking payment by bank transfer works when you have a handful of bookings a year. Once direct bookings pick up, chasing transfers and matching names to payments gets old fast. Holiday let payment processing means guests pay by card on your own website, and the money lands in your account without you doing anything.

For most small owners the answer is simple. Use Stripe or a similar card processor, take a deposit at booking, collect the balance before arrival, and decide your refund rules in advance. The detail below covers fees, timing and the awkward bits like security deposits.

Why bank transfer isn’t enough for holiday let payment processing

Bank transfer is cheap, but it adds work and delays. You send details, wait, check your account and then confirm the booking by hand. Guests, especially on a phone, often abandon a booking when they have to leave the page to pay.

Card payment on the booking page fixes that. The guest pays, the dates are held, and you both get a confirmation. Bank transfer can stay as an option for the odd guest who prefers it, but it works better as a back-up than the main route.

Stripe, PayPal and other options

Stripe and PayPal are the two most common ways to take cards on a holiday let website, and both charge a percentage of each payment. A UK guide for holiday lets puts Stripe at around 1.5% plus 20p for a domestic UK card. Holidu says most card fees, including PayPal, are around 2 to 3%.

Compare that with the cost of a listing. Vrbo hosts pay a 5% commission plus a 3% payment processing charge per booking, and Booking.com commission ranges from 10% to 25%. A card fee on a direct booking is a fraction of that.

Listings don’t stop guests looking for you directly. Plenty of people find a hut on a directory, then search for the owner’s own site hoping for a better price. If your site can take a payment there and then, you catch those bookings and keep more of the money.

Deposit or full payment

A deposit at booking with the balance due before arrival is the usual pattern, and it suits most glamping sites. It keeps the upfront cost lower for the guest and still gives you a committed booking.

A simple payment schedule looks like this.

The exact split is your call. Some owners take a larger deposit for peak weekends and a smaller one for quiet midweeks. Whatever you choose, show it on the booking page before the guest pays, so nobody is surprised.

Security deposits

A security deposit covers damage, and you can take it as a card hold or as a payment you refund after checkout. A hold doesn’t take the money, it just reserves it on the guest’s card. Holds only last a limited time, so a refundable payment is often simpler for longer stays.

Some owners skip security deposits altogether and rely on their terms and insurance. For a shepherd’s hut with a hot tub, many prefer to keep one. Whatever you decide, state it clearly in your booking terms.

Refunds and cancellations

Decide your cancellation rules before you take the first payment. Then put them on the booking page and in the confirmation email.

A clear policy usually covers three things.

• How much of the deposit is refundable, and until when
• What happens to the balance if a guest cancels late
• What you’ll do if you have to cancel, for example because of weather or an emergency

Card processors let you refund a payment from your dashboard, but fees on the original payment may not come back. Check how your provider treats refunded fees, and allow for it in your terms. For anything involving consumer law, ask a solicitor to look over your terms. We can’t give legal advice.

Making it work on your own site

The payment processor is only half the job. Your booking system has to connect to it, show live availability and take the right amount at the right time. Booking systems can be embedded on your site, including online payments, so guests never leave your pages.

Millie the Hut’s booking page puts an availability calendar, a short enquiry form and a seasonal rate card on one page, so guests see dates and prices before they commit. That’s the sort of clarity that makes a guest comfortable paying a deposit. You can see more about how we approach this on our how we work page.

Fees and terms in this guide are accurate as of October 2026.

FAQs

How much does holiday let payment processing cost?

Card processors charge a percentage of each payment, often with a small fixed fee. One UK guide puts Stripe at around 1.5% plus 20p for a domestic UK card, and Holidu says most card fees are around 2 to 3%. Either is far below the commission a listing site takes.

Should I take a deposit or the full amount?

Most small owners take a deposit at booking, then the balance before arrival. Full payment upfront suits short-notice bookings, where there is little time between booking and stay. A deposit keeps the entry price lower for guests, while still giving you a firm commitment.

Is Stripe or PayPal better for a holiday let?

Both work, and many guests like seeing PayPal as an option. Stripe is a common choice for card payments on your own site and handles deposits and balance payments neatly. Check each provider’s current fees and payout times, then pick the one that fits how your booking system connects.

How do I take a security deposit?

There are two common ways. You can hold the amount on the guest’s card as a pre-authorisation, or collect it as a payment and refund it after checkout. Holds only last a limited time, so a refundable payment is often easier for longer stays. Say which you use in your booking terms.

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