With Fairhospitality.coop, we want to be very transparent how payments are made through our promoted platform Fairbnb.coop.
Payments are made through partner Mangopay. That’s actually an“Escrow” system. As a result, payments can stay there for long periods of time without host or anyone else being able to access them. Only at the end of the transaction is the money automatically distributed to the various parties involved.
Transparency in payments
Payment proceeds over a few steps:
- Booking request
- The guest requests a booking for a certain period and for a certain accommodation.
- In doing so, the Fairbnb.coop website transparently shows the pricing structure. For example, it clearly states how much you pay for your lodging, for the project you support and for Fairbnb itself.
- The guest provides his card details. The verification proceeds afterwards depending on the bank the guest is affiliated with
- Then the system verifies the data, including the availability of the required amount
- Once everything is checked, the total amount is reserved on the card. In technical terms: pre-authorized. This means that you can no longer spend that amount, but also that it is not yet gone from on your card. With most banks, you can see that in the online app.
- Then the host will receive an email with the booking request.
- Host handles the booking
- The host now has 2 options
- (a) it accepts the booking: at that time, the reserved amount of the card is transferred to the Mangopay payment system.
- b) it refuses the booking or allows it to expire after 48 hours: the money will be released and is immediately available back to the guest.
- The host now has 2 options
- Cancellation of booking
- If the guest cancels, the cancellation policy as stated in the lodging offer applies. Depending on when the cancellation occurs, the entire amount, only a portion or nothing will appear back on the card. Be sure to consult the terms and conditions ! The remaining parts then go to host, project and Fairbnb. (as also in point 4)
- In all cases, if the host cancels, the guest will get the money put back on the card. Fairhospitality.coop is happy to assist the guest with an alternative solution in that case.
- Check-out at the end of the stay
- On the day of check out, the money transfers from the internal guest Mangopay account to that of the host, project and Fairbnb
- Finally, the host is paid the same day through the Manopay system. So in effect, the guest pays directly to the host, as in a direct booking. Projects receive the donations on a quarterly basis.
Identification process
It is important to know that we work entirely according to the rules of European payments. This also means that anyone receiving money through the Mangopay system must identify themselves. In the industry, this is known as KYC or Know Your Customer. This is done very easily at https://booking.fairbnb.coop/nl/dashboard/user/start-id-verification. There you will find the simple steps to prove your identity.
Please note that if that procedure is not completed in time, the money (for host or project) will remain in the Mangopay system. Payment to your own bank account is possible only if KYC requirements are met.
