UK Holiday Let Business: Payment Provider & Booking Software Case Study

Case study summary

An established UK holiday business contacted Merchant Advice Service after receiving notice from its existing payment provider and needing to review its card-payment setup.

The business was treated as part of the travel sector for payment-processing purposes and also required a payment solution capable of working with its booking and client-management software.

Merchant Advice Service helped the business understand the payment-provider requirements that mattered, including its sector classification and technical integration needs, so that it could assess potentially relevant alternatives.

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The business

The client was an established UK holiday business.

Although the company operated UK holiday accommodation, its business model meant that payment providers treated it as part of the wider travel sector.

This distinction mattered because payment-provider acceptance criteria can differ according to sector, fulfilment model and the time between taking a payment and providing the underlying service.

The problem

The business received notice from its existing payment provider, Stripe, and therefore needed to investigate alternative payment arrangements.

But replacing the existing provider was not simply a matter of finding another company capable of accepting card payments.

The business also needed a payment solution that could work with its existing booking and client-management software.

Its requirements therefore combined two important areas of payment-provider selection:

• provider suitability for a travel-related business model
• technical compatibility with the systems already used by the business.

Why payment-provider selection can be different for holiday businesses

Holiday accommodation and travel businesses can have payment requirements that differ from straightforward retail transactions.

Depending on the individual business model, considerations can include:

• taking bookings before the service is delivered
• deposits and balance payments
• cancellations and refunds
• higher transaction values
• card-not-present payments
• booking-system integration
• payment links or online checkout
• provider acceptance criteria for travel-related businesses.

Not every holiday business will have the same requirements or be assessed in the same way, so the individual payment flow and business model need to be understood before comparing providers.

How the business found Merchant Advice Service

The client contacted Merchant Advice Service through Facebook after receiving notice from its previous provider.

The business had already approached several organisations while looking for an alternative and wanted more detailed guidance about its options.

What Merchant Advice Service identified

The first step was to understand the business rather than simply recommend another payment provider.

Relevant requirements included:

• the nature of the UK holiday business
• its classification within the travel sector
• how and when customers paid
• the need for online payment acceptance
• compatibility with booking and client-management software
• the circumstances surrounding the notice from the existing provider.

This allowed the payment-provider search to focus on businesses capable of considering both the commercial requirements and the technical requirements of the merchant.

The importance of integration

A payment provider can appear suitable commercially but still be the wrong choice if the payment technology does not work with the systems a business relies on.

For a holiday business, payment processing can form part of a wider booking journey.

The merchant may therefore need to consider how the gateway or payment provider interacts with:

• booking software
• property-management systems
• customer-management software
• online checkout
• payment links
• deposits and balance payments
• refund and cancellation processes.

This is why Merchant Advice Service considers integrations alongside pricing, provider appetite and other commercial requirements when comparing payment-provider routes.

Businesses with technical requirements can also explore the Merchant Advice Service Payment Gateway guides.

The advice provided

Merchant Advice Service provided guidance focused on the client's individual requirements and the considerations involved in finding a replacement payment provider.

The client subsequently explained that it had approached several providers but felt the advice from MAS stood out because of the level of detail and understanding of the issues involved.

Customer feedback

The client subsequently left Merchant Advice Service a Google review.

“The advice we received from MAS stood out from the rest. Detailed, knowledgeable and experienced in every issue we came across.”

The client also thanked Libby and the Merchant Advice Service team for the service received and said they would highly recommend MAS.

Merchant Advice Service view

This case demonstrates why payment-provider selection should consider the complete payment setup rather than focusing only on transaction rates.

For this business, there were two separate questions:

• Which payment providers were potentially suitable for its travel-related business model?
• Which of those options could support the technology and booking journey the business already used?

Ignoring either requirement could have resulted in the business considering a provider that looked suitable initially but could not support the way it actually needed to take payments.

This requirement-led approach is relevant far beyond the travel sector. Ecommerce businesses, subscription companies, hospitality operators, marketplaces and businesses using specialist software may all need to assess technical compatibility alongside acquiring and commercial terms.

What this case demonstrates

• Sector classification matters. A UK holiday business may be assessed as part of the travel sector for payment-processing purposes.
• Integration matters. A provider needs to work with the technology and customer journey used by the business.
• Provider selection is broader than price. Transaction rates alone do not establish whether a payment provider is appropriate.
• Business requirements should be understood first. Identifying the payment flow, software and operational requirements can narrow the provider search.
• Provider criteria differ. Businesses receiving notice from an existing provider may have other potential payment routes depending on their circumstances.

Payment providers for travel and holiday businesses

Merchant Advice Service publishes further information about payment processing for travel-related businesses, including holiday lets, travel agents and businesses with more specialist acquiring requirements.

Read the Merchant Accounts for Travel Businesses guide for more information.

Businesses comparing their wider payment-provider options can also read Compare UK Payment Providers.

About Merchant Advice Service

Merchant Advice Service is an independent UK business-to-business payments information, comparison and provider-matching service founded by Libby James in 2016.

MAS helps businesses understand their payment requirements and identify payment providers or specialist partners that may be relevant to the way they operate.

Its areas of payments coverage include merchant accounts, payment gateways, ecommerce payments, provider selection, switching providers, integrated payments, international payments, recurring payments, merchant finance and more complex payment requirements.

Merchant Advice Service is not an acquiring bank or payment processor and does not make final merchant-account underwriting decisions.

The MAS information, matching and introduction service is free to businesses. MAS may receive commission or a referral fee from some commercial partners where an introduction results in a completed product or account.

Read How Merchant Advice Service Works for more information about provider matching and the MAS commercial model.

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