Online Merchant Account

To process online payments to your bank account, all banks require you to have an Online Merchant Account. This differs from an EFTPOS facility, because the risk profile of transactions online is different.

Acquiring online merchant facilities

Acquiring an online merchant facility from your bank
Establishing a system for processing credit cards online is a relatively simple process, not unlike acquiring a merchant facility to process credit cards via an EFTPOS terminal.

Do you need one?
Your EFTPOS merchant agreement does not permit you to process payments using credit card numbers acquired online.

Credit card details acquired on a website offer a different risk profile to banks. The banks also offer customers, using credit cards online a higher amount of consumer protection, including different refund options.

Hence, an online merchant agreement is required to acquire and process credit card details acquired from a website.

OPTION 1 - PayPal (Worldwide)

• PayPal Worldwide
  Send and Receive Payments Securely Worldwide.
  Click her for list of countries where you are able to setup a PayPal Merchant account
  
  
• PayPal Advantages:
  • You do not have to be a PayPal member to pay with credit card
  • No Setup Fee
  • No monthly fee
  • Only takes 2-3 days to set up a verified account)
  • Worldwide
  • Recognised brand name
  • SECURE 
  • Transaction Fees - Volume Based discounts
    (Please keep in mind that high 'bank interchange rates' in some countries cause the PayPal fees to go up and may require a slightly higher level of commission to operate more profitably) 
     
• Split Payment (Mass Payment) - This is a MAJOR PAYPAL BENEFIT
  Split Payment (Mass Payment) allows licensees upon receipt of accommodation payment to automitically send money to Suppliers & for Booking/Management Fees.
  This great time saving feature allows you to run your business on Auto-Pilot with a minimum of time spent on administration of outgoing payments.
   
•  PayPal Registration - Click Here
  (Business Account recommended with verification option) 
  
   

Opton 2 - Australia

1. NetRegistry    
   How to get an online merchant facility
   It is best not to attempt to get one from your bank manager - branch managers tend to be relatively uninformed about their ecommerce payment systems.
   To acquire an Online Merchant Account, you will need to apply to the bank directly
   (Fast track this process through one of our preferred partner banks of St George and National Bank).
   
   If you prefer to keep your account with a different bank you can open your Online Merchant Account with our preferred partner banks and the account can be linked to any nominated bank account, e.g. Commonwealth, Westpac etc. The money is transferred at the end of each business day to your nominated account, and there are no bank fees associated with the transfer of funds.  
   
   
2. Eway
   eWAY is the leading Internet payment gateway provider operating in Australia, New Zealand and United Kingdom. Connecting your website directly to your bank to process your customers online credit card payment in a few seconds.
   Allowing your business to securely trade 24/7 all over the globe, truly automating the accepting website payments component of your business
    
3. Others available subject to demand
    

Accounting / Book Keeping & Tax Explanation:

Simple explanation of the process:

The process starts when the system recognizes an accommodation booking & payment is received.

1. Guest Payment Received into your bank account incl tax

Based on what has been set-up in configuration and establishment details, the system automatically calculates what payments are required for:

2. Payment to be made by licensee to Hotel including tax

3 Guest Booking Fee payment to be made to Accommodation Guru including tax

4  Management Fee payment to be made to Accommodation Guru including tax

The system will then provide a statement confirming the profit on the transaction and this profit amount will be equal to the cash held by you after all payments have been made.

If you participate in the PayPal ‘Split Pay’ system, the required payments (Property, Booking & Managemant fees) will be remitted automatically.
If the property is not already a member of PayPal, they will be invited by an email from PayPal to join so that they may withdraw funds due to them immediately.

You may also opt for a mix of the PayPal Split Payment System for some properties & manual payments for others. 

Accomodation Guru Transaction Matrix Example:

 
** Explanation of VAT/GST/Sales Tax

More Detailed Explanation:

Following is an explanation in general terms of how the Accommodation Guru accounting system operates.
It will require to be set up correctly to reflect local conditions. That being said Accommodation Guru has been designed to cover a wide range of tax alternatives.

Part 1. Accounting for initial purchase with customer.
The system allocates the payment to the bank account.
If the amount paid includes any tax amount, that tax amount is allocated to a VAT (or other) tax payable account.
The remaining balance after accounting for tax is allocated to an Accommodation Sales Account.

Part 2. Accounting for the payment to the owner of the accommodation.
The completion of Part 1 immediately leads to Part 2.
The amount payable to the owner of the accommodation inclusive of taxes is allocated to a payable account.
At the same time if a VAT type tax is included, the tax amount is allocated to a VAT tax paid account.
The remaining VAT exclusive amount is allocated to an Accommodation Expense Account.

Part 3. Accounting for Booking and Management Fees.
The completion of Part 1 also immediately leads to Part 3.
The amount payable for management and booking fees inclusive of taxes is allocated to a Mangement/Booking Fee Payable Account. 

At the same time if a VAT type tax is included the tax amount is allocated to a VAT Tax Paid Account.
The remaining management or booking fee being a VAT exclusive amount is allocated to a Management/Booking Fee Expense Account.

After these entries the accounting records will look like this: 

Income

• Total amount charged to guest exclusive of any taxes

Expense

• Amount paid to owner of accommodation exclusive of taxes
• Booking Fee exclusive of tax
  
• Management Fee exclusive of tax
  

Profit

• Should equal the commission/mark-up charged exclusive of tax
   (Amount guest paid minus Cost of accommodation minus Booking Fee minus Management Fee = Profit) 
  

Cash at bank

• Amount paid by Guest inclusive of taxes
  

Accounts Payable

• Amount due to the owner of the accommodation inclusive of tax
  
• Booking Fee inclusive of tax
  
• Management Fee inclusive of tax
  
  

VAT Taxes (Payable) / Receivable

• (Taxes collected on the amount paid by the guest)
  
• Tax on the amount paid to the owner of the accommodation
  
• Tax on the Booking Fee
  
• Tax on the Management Fee

When all accounts are paid and net VAT Taxes are paid out of the bank account, the amount left in the bank account will be equal to the profit exclusive of tax.