Receiving secure payment from foreigner

[MOXJO7282]

I have never rented from someone from a different country other than Canada but I have someone through Redweek from Saudi Arabia apparently interested in my Marriott Newport Coast that is 80+ days from check-in.

How do I make sure to received secure payment from this individual? I'll read stories where foreign checks clear and then the bank realizes something was fraudulent and take back the funding.

What types of payments can I request that will be fraud proof? If I request against US bank account? I assume postal money orders but not sure what this individual will have access to. I won't put myself at risk because it will rent otherwise but would like to close the deal if I can avoid the risk.

 

[amisco]

Pay Pal

I think you can use Pay Pal for the transaction.... I think that is easiest and far cheaper than wire tansfers etc.

 

[MULTIZ321]

Joe,

Another vote for PayPal. PayPal helps you buy and sell Internationally.

With PayPal, you can send and receive money in 24 currencies from anyone with an email address in 190 countries and regions.

For more info see - https://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/general/PayPalIntlHub-outside


Richard

 

[ronparise]

I just rented a week to someone from France...

paypal worked great

 

[MOXJO7282]

I just rented a week to someone from France...

paypal worked great

How long did Paypal hold payment? Standard 3% applies?

 

[piper_chuck]

Be careful with Paypal too. My wife has lost quite a bit of money selling to people from other countries. Paypal these days is more likely to side with the buyer than the seller. If you do use Paypal, have them send the money as a gift and then get it out of Paypal as soon as possible.

 

[DeniseM]

How long did Paypal hold payment? Standard 3% applies?

I would probably pass on this rental on the likelihood of it being a scam.

Paypal charges an additional fee for foreign transactions - varies from country to country - that info. is on their webpage.

Make sure the bank acct. you transfer it to doesn't have over draft protection, and withdraw all funds from it as soon as they hit.

 

[MOXJO7282]

So it turns out he's a doctor in Kuwait and seems totaly legit. I've had a few e-mail exchanges with him. He knows the resort well advising me of the buidlings locations he would prefer.

He's willing to pay via paypal and cover all fees, foreign and domestic so I'm good with that. He actually sent me a contract in english that was actually very comphrensive.


I'm still skeptical but everything seems to be checking out. Am I missing something else?

He's paying me almost 90 days before checkin, won't any issues sort themselves out before then so that I could re-rent if necessary?

 

[DeniseM]

Here is the worst case scenario - He goes on the vacation, and then disputes the payment with his credit card, and Paypal. Paypal withdraws the money from your bank, and you lose both the rental and the $$$.

 

[MOXJO7282]

Here is the worst case scenario - He goes on the vacation, and then disputes the payment with his credit card, and Paypal. Paypal withdraws the money from your bank, and you lose both the rental and the $$$.

But couldn't someone in US do that as well? I guess he's beyond the reach of the law in Kuwait.

And Paypal just allows that to happen? It would seem that could be a common issue that Paypal would have some policy around?

 

[DeniseM]

But couldn't someone in US do that as well? I guess he's beyond the reach of the law in Kuwait.

And Paypal just allows that to happen? It would seem that could be a common issue that Paypal would have some policy around?

Someone in Kuwait is outside US law - so the contract is unenforceable.

Yes, if they dispute it with their credit card, Paypal will withdraw the funds.

This is what you need to do:
1. Transfer the money to your bank acct. as soon as your receive the payment.
2. Remove all money from the bank Acct. as soon as the Paypal payment hits.
3. Make sure the bank Acct. doesn't have overdraft protection.

I have a "dead end" account that I use exclusively for Paypal payments.

To be quite honest, I wouldn't do a rental with someone who is completely outside US law - not worth the trouble. I will be really surprised if this isn't a scam. Have you googled their email address and other info. to see if you can find out any info. about them?

 

[sml2181]

Yes indeed, someone from the US could scam you just as well.

As a Dutch citizen with a Dutch Paypal account, I can tell you that I accept payments from foreigners all the time without any problems. These foreigners happen to be mainly from the US - but to me it really doesn't make a difference whether someone is paying me from a Dutch account, a US account or from a Chinese or Saudi Arabian account. I have rented to people from the US, Canada, China, Japan, Korea, some European countries and Dubai and Saudi Arabia. My renters know about my nationality before they commit to the rental, and they are free to decide to go ahead or not. Somehow most of them keep coming back and/or refer their friends and relatives.

I accept Paypal including credit cards and e-checks. I do not accept personal checks because they are considered to be extremely unsafe by our banks, and they are very expensive. Nor am I able to pay someone with a personal check; we haven't had them here for many years. Paypal does charge a little, but since it is so easy to use, I happily accept the fees. Of course people can wire funds as well, but only if they request it themselves. Wiring funds is considered to be the safest way - according to our bank.

I have never had any problems accepting funds and most certainly not because of the foreign-thing. Unless people are first time Paypal users sending a large amount as their first transaction, the funds should appear in your account just as quickly as from any other account.

I do believe people have to follow their gut feeling and if the op believes his renter is legit, I would recommend to certainly give it a try. Not all foreigners are scammers. Not at all.

Jmo.

 

[MOXJO7282]

Yes indeed, someone from the US could scam you just as well.

As a Dutch citizen with a Dutch Paypal account, I can tell you that I accept payments from foreigners all the time without any problems. These foreigners happen to be mainly from the US - but to me it really doesn't make a difference whether someone is paying me from a Dutch account, a US account or from a Chinese or Saudi Arabian account. I have rented to people from the US, Canada, China, Japan, Korea, some European countries and Dubai and Saudi Arabia. My renters know about my nationality before they commit to the rental, and they are free to decide to go ahead or not. Somehow most of them keep coming back and/or refer their friends and relatives.

I accept Paypal including credit cards and e-checks. I do not accept personal checks because they are considered to be extremely unsafe by our banks, and they are very expensive. Nor am I able to pay someone with a personal check; we haven't had them here for many years. Paypal does charge a little, but since it is so easy to use, I happily accept the fees. Of course people can wire funds as well, but only if they request it themselves. Wiring funds is considered to be the safest way - according to our bank.

I have never had any problems accepting funds and most certainly not because of the foreign-thing. Unless people are first time Paypal users sending a large amount as their first transaction, the funds should appear in your account just as quickly as from any other account.

I do believe people have to follow their gut feeling and if the op believes his renter is legit, I would recommend to certainly give it a try. Not all foreigners are scammers. Not at all.

Jmo.

This is my feeling as well. Last year I rented to another Kawait person but he lived in CA and had US bank acct.

I almost always rent my weeks beyond 90 days so my feeling I'm going to have my money is my bank and if something happens I can always re-rent so the onus is on renter to check me out.

I always take personal checks from US for this reason and to avoid the fees that can add up.

 

[MOXJO7282]

Definitely going through with the transaction. I spoke to the individual and he gave me a US associate who confirmed this person's integrity as well.

We came to terms on a gentlemen's agreement since nothing really is enforceable. We're closing the deal today when he makes payment.

I appreciate and value everyone's input in the matter. I was very relunctant to proceed but this person put to rest any fear I had dealing with a foreigner.

At the end of the day, US resident or not I could still get screwed but I'm as comfortable with this person as with any other person I've dealt with in the past.

I did take Denise M's advice and will be using a deadend bank account just to be safe.

 

[MaryH]

Is paypal best method for 8 days before checkin

Hi all,

I have never really requested payments before in Paypal since I have mostly rented from others who requested for me to pay via paypal. Once time money landed in my paypal account for a LM rental via a broker who contacted me on my TUG LM listing, but he pushed the funds to me and I just had to send him my email which he had anyone from our communications.

So questions I have
1. Should this be considered purchase or personal transfer?
2. Is the fee 3%? I am in Canada and the person is in US.
3. If they pay by CC, I would be charged an additional charge of 2.9%? but if they pay from their bank account there would not be that fee? How long would it take to clear if it is from their bank account?

I am renting the Hyatt one for slightly below my costs plus eating the fees for reservation, guest certificate, etc. and a Paris week for slightly above my cost including the fees so likely would be a wash if both goes well. This is mainly to cover costs then to make profit so trying to find the most troublefree method possible.

 

[piper_chuck]

This page provides a good overview of the fees:
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/fees

 

[MOXJO7282]

I wish it were easier to decipher paypal fees but I was charged 3.9% total to receive money from Kuwait. I tried to find a calculation of the actual fees but couldn't find it. I expected to be charged 2.9% + 3.9% for international.

He made the payment under services if that matters but didn't think it would. I want to refund the renter the 2.9% but worried they will hit me with it after the fact some how. I actually already pulled the money out into my dead end account so I'm good so far with the deal but hate that I can't fully understand the fees. I understand what they're supposed to charge but its not the same as charged, to my favor so not sure what to make of it.

 

[Sandi Bo]

I have had a lot of fun trying to figure out paypal fees. I have no experience with foreign transactions so I can't speak to those. But, I have seen different fees based on whether someone paid directly with a credit card or it ran through their paypal account (there is a difference).

If PayPal is showing the payment status as 'Completed' and you click on details and see 'OK to ship' then I think your transaction is complete (and as secure as it's going to get). Scrolling through the details, at this point I think it is safe to assume that you are seeing all fees involved. Also on this screen is the 'Issue a refund' button.

There are times when I have refunded monies (deposits after a rental). I will go into the original transaction and issue a partial refund (using the Issue a refund button described above). Doing it this way also refunds to me the fees from the refunded portion (a few extra dollars for me, the renter still receives the amount I expect them to receive) and it keeps the whole transaction together, so to speak (easier tracking for me).

I have not figured out the difference (if there is one) in choosing Goods, Services, or eBay Items.

When someone pays, if they choose Purchase, the transaction is more protected (and you are charged fees). If they choose Personal I don't believe there are charges and you have (both) forfeited any protection that Paypal might have given you.

I am firm believer that at some point you trust your gut. I traveled 1000 miles to go to a championship football game with tickets we purchased from a team mascot look alike (found on craigslist) - boy did I get razzed. DH kept telling me I'd be sitting in the parking lot watching the game on my smartphone. But I did reach a point, with all the kidding, where I said 'if this person is scamming, I have no sense of judgement at all'.

Good luck with your rental, sounds like you've got stuff well under control.

 

[Beefnot]

From piper chuck's link it looks like it is supposed to be 3.9% plus some fixed fee for international money receipt. Domestically, it is only 2.9% plus a $0.30 fee.

 

[MOXJO7282]

From piper chuck's link it looks like it is supposed to be 3.9% plus some fixed fee for international money receipt. Domestically, it is only 2.9% plus a $0.30 fee.

I don't know why I just assumed it would be the 2.9% + the 3.9% for the intn'l but apparently its just the one charge of 3.9% so I do need to refund my renter 3%

 

[DeniseM]

I don't know why I just assumed it would be the 2.9% + the 3.9% for the intn'l but apparently its just the one charge of 3.9% so I do need to refund my renter 3%

Did you quote the 3.9% as a separate fee, or did you just roll it into the total with no breakdown?