# Understanding payouts

This page provides information on the payout methods available to partners and explains various payout-related concepts you encounter while using the Payments by Booking Onboarding API.

We strongly recommend that you also go through the [FAQs about Payments by Booking](https://partner.booking.com/en-us/help/policies-payments/payment-products/payments-bookingcom-faqs) as they provide additional important information not covered in this documentation.

## About payout methods

There are three payout methods supported by Payments by Booking: bank transfers (BT), virtual credit cards (VCCs), and Stripe.

- If you choose **VCC** as the payout method, you receive a temporary, digital card (issued per booking) that contains the exact amount that the guest paid for the reservation. This card can be charged after it's activated just like any other credit card using a POS terminal that supports 'card not present' transactions, or through a payment service provider.
- If you choose **BT** as the payout method, Booking.com pays you directly into your bank account, typically in your local currency. Payouts can be monthly, weekly, or daily ([limited to select countries](https://partner.booking.com/en-us/hosts/daily-payouts)).
- **Stripe** is [only available for Home properties in the US and Canada](https://partner.booking.com/en-us/help/policies-payments/payment-products/payments-property-management-companies-us-and-canada-faqs). Stripe is a payment service provider that works with Booking.com to facilitate bank transfer to partners. Funds are released per reservation on the reservation check-in day. The actual payout is performed by Stripe.


Switching from BT to VCC is not supported
If you want to switch the payout method from VCC to bank transfers after you've onboarded to VCC, use Extranet. The reverse direction (BT to VCC) is currently not supported (either with Extranet or this API).

For information on the features of each payout method, process and partner requirements, see:

- [Getting paid by bank transfers](https://partner.booking.com/en-gb/help/policies-payments/payment-products/getting-paid-bank-transfer-when-using-payments-bookingcom)
- [Payments for property management companies in the US and Canada: FAQs](https://partner.booking.com/en-us/help/policies-payments/payment-products/payments-for-property-management-companies-in-the-us-and-canada-faqs)
- [Everything you need to know about virtual credit cards](https://partner.booking.com/en-gb/help/policies-payments/payment-products/everything-you-need-know-about-virtual-credit-cards)


### Note for bank transfers

After the onboarding, if the property has enrolled to Payments by Booking.com with bank transfers as the payout method, they'll need to provide their bank account details to receive payouts for their reservations and to comply with regulatory requirements.

- If your partner manages one property, they can provide their bank account details through the extranet by going to **Finance** -> **Finance settings**.
- If your partner manages multiple properties, they can provide their bank account details through the Group extranet by going to **Finance** -> **Bank details**.


For more information about how to update your bank details, see [this page](https://partner.booking.com/en-gb/help/policies-payments/payment-products/getting-paid-bank-transfer-when-using-payments-bookingcom).

Adding bank account details through the Payments by Booking Onboarding API will be supported in a future release.

### Note for Stripe

To comply with an evolving regulatory landscape, Booking.com is required to collect and verify information from each partner willing to use Stripe. For this, partners must complete the Know Your Partner (KYP) form that will be sent as part of this API.

For more information on how to complete the KYP form, see [this page](https://partner.booking.com/en-gb/help/legal-security/regulatory-compliance/everything-you-need-know-about-know-your-partner-kyp-form).

## About payout commission

For information on the fees, see [How much Payments by Booking.com costs](https://partner.booking.com/en-gb/help/policies-payments/payment-products/how-much-payments-bookingcom-costs).

A payout can be gross or net:

- A **gross** payout is when the total reservation amount is paid out. In case of gross, partners pay their invoices either through Booking.com Extranet or by means of Direct Debit (DD) that debits their bank account automatically with the invoice amount.
- A **net** payout is an amount that excludes Booking.com commission and payment fees. An official commission invoice is generated and the calculated amount is deducted per partner.


A bank transfer payout can be either net or gross. VCC and Stripe payouts are almost always gross.

## About payout frequency

The choice of frequency is only available for **bank transfers**. They can be monthly, weekly, or daily ([limited to select countries](https://partner.booking.com/en-us/hosts/daily-payouts)). See "Getting paid by bank transfers" -> "When will I get paid by bank transfer" in the [FAQs](https://partner.booking.com/en-us/help/policies-payments/payment-products/payments-bookingcom-faqs#question-25069).

**VCC payouts** are per reservation, meaning that once the money has been added to the VCC, the partner can charge it. See "Getting paid by virtual credit card (VCC)" -> "When can a VCC be charged" in the [FAQs](https://partner.booking.com/en-us/help/policies-payments/payment-products/payments-bookingcom-faqs#question-25069).

**Payouts handled by Stripe** typically occur daily, and the payment is generally released on the day of guest check-in. The gross pay is sent to a central bank account.

## About payment collection strategy

When you receive a response from calling the [Eligibility API](/connectivity/docs/payments-by-booking-onboarding-api/checking-property-eligibility-for-pbb), it contains a field named `payin_collection_strategy`. This is a special, temporary field that helps determine how different guest payment-related policies ("free cancellation", "non-refundable", "Pay later", etc) affect guest payment collection. This information is crucial as it directly impacts the handling of partner payouts by Booking.com.

- If the field is set to `ALL` in the response, you don't need to do anything when requesting to onboard the property to Payments by Booking with the [Payments Configuration API](/connectivity/docs/payments-by-booking-onboarding-api/sending-request-to-onboard-to-pbb). Just set `payin_collection_strategy` to `ALL` in the request.
- If the field is set to `PARTIAL`, set `payin_collection_strategy` to `PARTIAL` in the onboarding request, **and** integrate the following information into the application you provide to property owners:
![policies-1](/assets/policies-1.f88bf1accce8070ab32a618d36260fc01fe6400a84bcbd84a5e939662b8c400b.ccfe5165.jpg)


## VCC activation policy codes

A VCC activation policy code is a numeric identifier used within Booking.com to define exactly when a VCC associated with a reservation gets activated and is enabled for charging.

| Code | When activated |
|  --- | --- |
| 1 | Card activates on the check-out date. |
| 2 | Card activates when reservation becomes non-refundable. |
| 3 | Card activates on the check-in date. |
| 4 | Card activates 1 day after check-in. |
| 5 | Card activates long after check-out. |
| 6 | Card activates on cancellation date. |
| 7 | Card activates on booking date. |