Lodging payment by bank transfer and lodging cancellation terms

A small inn wants a down payment (30euro) via "bank transfer". She's provided her banking account info. Am I behind the times? Do I really want to provide my banking info to a private party? I will contact her and I ask for another means of payment, but I'm wondering if others are getting similar requests?

Payment by bank transfer is very common in Germany and the Sud Tirol, in my experience. Some small inns just do not want to accept credit cards.

They have given you THEIR bank details. What you give to them with a bank transfer is no different than writing them a check—- which has your account number snd the bank routing details printed right on it.

But it can be a hassle to do this. I am sure you can fine nice places that accept credit cards.

I've had places request deposits via bank transfers in Europe before (England specifically). It isn't unusual or risky. I plugged the bank info they gave me into Xoom (Paypal's international bank transfers service) and paid using my credit card. All safe as any other method I've used.

I ran into this trying to book rooms in the High Tatras in Slovakia. One guesthouse would only give a full refund if you cancelled more than 365 days before (!) and also required a deposit via bank transfer. And of course the trouble with a bank transfer is that once that money is sent, it's gone. It's not like a credit card payment that you can dispute. Several accommodations in the High Tatras have the kind of graduated penalty that you encountered; e.g., you lose 30% if you cancel a month before, 50% two weeks before, 100% a week before. The guesthouse I eventually picked had free cancellation until two weeks before, but requires payment then (via credit card on Booking.com). That was the best I could do where I wanted to stay. Some of the hotels I looked at in Vienna also had severe cancellation policies, but in some cases I found that if I went through Booking.com those policies did not apply and there was free cancellation until the day before--so it's worth trying that.

It's always been common in Europe as bank transfers are free of charge and often instantaneous especially domestic ones, international SEPA transfers in the EU and participating banks outside the EU - next day.

I wouldn't have an issue with the idea of a bank transfer (but would use Wise instead, because it should be massively cheaper). Such extreme cancellation policies would be deal-breakers for me; I would either change my destination or take a chance and count on being able to find somewhere to stay much closer to my travel date--figuring I could go somewhere else if I came up empty.

Prior to this year I've only once agreed to a cancellation policy stricter than a 100% refund 4 or 5 days in advance. That was on a trip to Seville during Holy Week, when I'd have had to cancel 2 weeks in advance to get my money back. It made me nervous, but it was pre-COVID and I'm generally healthy. There didn't seem to be any better options.

This year, I have a cancellation window of at least a week at a hotel in Tremezzo on Lake Como. That's arriving on August 30, and it was difficult to find anywhere at all to stay in the mid-lake area. That whole situation doesn't make me happy, but I'll have been in Europe for months, so the odds of needing to cancel outside the free-cancellation window are low.

One of these days I'll probably end up eating a substantial hotel charge (I've lost only one hotel night so far, when a rural bus in Catalonia simply did not run and marooned me in Ripoll), but I hope I'll be able to live with it on the grounds that I've saved a lot of money over the years by not paying for trip cancellation/interruption insurance.

Sasha and Angella get it right.

As for cancelation policies, they are fairly pure free market economics. If the market bears no cancellations or other strict policies and deadlines, then hoteliers will hold out for term that favor them. You don't aren't obligated to take those terms if you don't want to; they aren't obligated to sell you a room.

I generally am happy to pay a bit more for flexibility, but also from time to time end up in less optimal lodgings because I don't like being pinned to an itinerary.

Bank transfer is a usual way of paying for things in many countries. I was really surprised to find that it isn’t really a thing in the US. I do it all the time to pay for things from school trips to paying tradesmen to reimbursing friends. It’s very easy to do using a mobile banking app.

We do it a couple of times each year and use Wise, as recommended above by acraven. Perfectly safe. Your info won’t be compromised. Smaller facilities need to protect themselves with cancellation policies to avoid no shows.

A “bank transfer” is no different than writing a check, as Sasha said. The same bank details are provided. However, our little credit union does not participate so I avoid places that require it. Or ask for other options. In several cases (including a small inn we have booked in Switzerland September) they have agreed to just trust me and wait for payment in person. In others they (grudgingly) accreted to accept the deposit by credit card.

The cancellation policy is a different matter. I saw terms like that (30% deposit, non-refundable, then 70% non-refundable, then 100% non-refundable a month in advance) when I was looking at places in the Dolomites last year. Every place I liked had a policy like that. And I can understand why that is necessary for small family-run places in a popular destination like that.

So I booked the place I really liked, and bought the cancellation insurance from the European company they recommended on their website. Note that the insurance included only that one booking, and only cancellation. But the coverage for 8 people in our family for the €4000 booking was only €135.

I suggest to the OP that if they find the bank transfers and cancellation policies troubling, they look for something they can book through booking.com with a credit card. Often different cancellations policies will apply as well.

Because my brother and are taking care of my mother, who is 87 years old and in hospice, if that’s the cancellation policy, I refuse to book. It may mean that over the next few years there are places I cannot go because even though she’s in hospice she could be with us a while

I would never buy insurance suggested by these places. Basically, these places have been encouraged to put up these restrictive policies because they’re getting a kickback from the insurance company. Doesn’t sit well with me. I realize other people may not feel that way. I buy an annual policy that does cover me should I have to cancel but I don’t feel like I need to jump through those hoops since so far place for I couldn’t find someplace I’d be perfectly happy at with a reasonable cancellation policy.

Bank transfer is a usual way of paying for things in many countries.

It isn't for me, nor will it be. Ever. Consumer protection flies out the window once the vendor has one's cash, and this is the case everywhere in the world.

I absolutely prefer to use a credit card to pay for travel accommodation and would prefer not to do a bank transfer for this type of thing. However, sometimes it’s the only option so you have to decide if it’s worth it. Eg, I am staying in a privately owned holiday home that the owner only rents out for a few weeks each year. It’s either pay by bank transfer or stay somewhere else more expensive that is set up to take card payments.

@Helen, fair enough, if I know the owner it's a completely different matter. But commercial transactions generally? No way.

Bank transfer is a usual way of paying for things in many countries.
It isn't for me, nor will it be. Ever. Consumer protection flies out the window once the vendor has one's cash, and this is the case everywhere in the world.

Did you never write a check to pay for something? How much consumer protection comes with that?

Did you never write a check to pay for something? How much consumer protection comes with that?

Did I ever? Sure. Do I do so now? Not if I can help it, because as you suggest the consumer protections are nonexistent.

My purchases ca. 2024 are almost exclusively by credit card. If it's cash, it's handed over in small quantities at the point of sale. Or paying off golf bets, which is actually where the vast majority of my cash goes. /shrug/

Carol, how does an annual policy cover cancellation? The cost of cancellation coverage is generally based on the cost of the trip being insured. Do you have to put an estimate of your travel costs for the year when you buy the policy? What if you want to take 2 tours costing $6000 each in that year? And cover airfare, etc. what would that annual policy cost?

My policy would cover a cancellation if I had to do it because of my mother’s health. It would not cover a cancellation if I just changed my mind

You need to read the terms of the policy you buy. Because of my mother’s health, I read my policy very carefully before I handed over the cash. If I have to cancel a vacation because of her health, I get my money back.

I understand it is just for cancellation based on a loved one’s health and other covered reasons. But it covers all your trips within a year, no matter how much cost is involved? Where would I look for a policy like that?

To answer your question, jules m, it's a very common in the rest of the world and replaces writing checks. In fact, German banks don't issue paper checks anymore. We've used this for at least the last fifteen years. If you are in the US, which doesn't participate in the system, Wise is how you would get around this. Now you know for next time.

Thanks for all the great discussion.

In the U.S. we use Venmo between individuals. My daughter's was hacked but was caught before any damage. We still use Venmo, but only between family and folks we know well. For me, personally, I find credit cards provide the most protection. I know that comes at a cost to the business which is increasingly passed on to the consumer, but it is what it is.

The inn agreed to take a credit card deposit. I ended up with terms of no penalty with cancellation prior to 30 days, and lose a sizeable portion if notification is less than 2 weeks. Had I felt I had other options, I might not have accepted it, however, these were the best terms I saw.

I'm not a fan of Booking.com, but I use it when I have to. It is probably a good option when faced with this type of situation.

@ Jules

In Australia, EFT has been standard banking practice for Point of Sale and business and banking transfer of funds between accounts since circa 2000. And NZ a similar time. It has given productivity gains to both businesses and individuals, evidenced but the gulf between fees charge by financial institutions in USA and Australia. Have not seen a cheque for a few years. My bank charged extra to process them. I do not accept them. The Federal government will only send money to a bank account.

Change is difficult to accept, particularly when one does not understand the underlying reason for financial change and, to use current jargon, the platforms that operate them.

I, President Biden, and citizen Trump well remember the 60’s through 90’s. 1860’s through 1890’s. The newfangled motor car scared the living daylights out of people, so much that the English Parliament passed The Locomotive Act of 1865, restricting speed to 4mph and requiring a person to run in front with a red flag to warn people.

So, one can fight and rail against change, or put in the hard yards and understand how it works.

Credit cards, EFT all appeal for different reasons. So do multicurrency debit cards, but few understand how they work or the benefits. I have embraced them all. Cash is on the way out down under. The business that operates the armour trucks for moving physical currency transfers is failing mainly due to expenses greater than income. Demand is falling, much like demand for red flag runners. Dodo bird stuff.

Am not holding my breath for the board rooms of the USA financial businesses to catch up with the rest of us. Innovation does not seem to be their aim.

On insurance, I have a broker who handles the best fit for me and family, and any claims if they arise. Cannot help with those problems.

Regards Ron

PS I am currently sitting in the China Eastern lounge, Pudong. My access to the internet is obviously not too restricted.

jules, I occasionally stay in places that want to be paid by bank transfer. I don’t mind that - and use Wise, since it is fairly expensive to actually make a transfer through my bank.

However I have also made a booking in the Dolomites for July - same cancellation you describe of 30% when cancelled at any point. And I looked at quite a few places. And the hotel in Venice? No refund if cancelled - and that was very common for any place I would consider. Been a long time since I have come across those kinds of terms. But at least I could use a credit card.