When issuing a full refund, Air takes YOUR next paycheck and gives it to guests!

So I recently had a guest cancelling an upcoming booking. A big one as it was for this Christmas/New Year’s. They explained that they just got diagnosed with a medical condition and needs surgery. They have to cancel. They didn’t demand a full refund. They kindly asked if I would consider a full refund. Our cancellation policy gave them half refund. So when they went through the cancellation process, I received an email from Air BnB like this:

Hi Linda,

Unfortunately, your guest Carolina had to cancel reservation HMAPWZRYMJ.

According to your cancellation policy, your payout has been updated to $XXXX. Your guest was refunded $XXXX.

This payout will be released 24 hours after the check-in date. You can review the updated payout in your Transaction History.

You can also refund the full amount to the user by clicking the button below.

So I clicked on the link in the email and issued a full refund. Then, this is the email I got from Air Bnb:

You sent $xxxx to Carolina

Before we send your next payout, we’ll deduct $xxxx from it and send that to Carolina. To find your next scheduled payout, go to Transaction History under your profile photo and click Upcoming Payouts.

Isn’t this stealing??? Why would Air BnB take MY next payout and refund it to her?? Don’t they already have her money?? Is this how Air BnB handles this type of cancellation?

The text of the message may not be what actually happens, I would think they will just refund her original payment but the message you received looks like that which is sent when you make a refund to a guest AFTER their stay has been completed.

With respect I would think it would be better to contact AirBNB rather than try and get clarification in an internet forum?

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So, they’re taking the money out of your next payout, but they’re still going to pay you 24 hours after the original check-in? It seems like they’re treating it as a resolution center payout and not a cancel with refund. Stupid? Yes. Stealing? No. Although I do wonder if you’ll actually end up paying Airbnb’s 3% host service fees on money you never receive.

What sucks more is that they will stick by their policy and not refund their service fees, but then ask you to break your policy and refund the 50% that you are owed.

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I guess I should have explained what I mean by stealing. To me, a large corporation that already has the money, but choose to take my money, then give it back to me in the future, is stealing.

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I do plan to call them. But past experience tells me they know less than the people here.

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Nah, that’s just borrowing. :slight_smile:

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I did this once when I was brand new and not knowing that they would take it from my next payout to give to the guests that cancel a few months ahead of time. My response now is “when I get paid by AirBnB I will refund you the money” if it was something I am willing to refund. Sometimes I add in “if I am able to rebook” if it’s a date that is a week or so away.

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So this IS how air bnb does business… Ugh. Lesson learned for sure!! Although I hate to do that to a guest in a situation like this, when they have surgery to deal with…

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Ideally, you’d just let the guest go through the extra trouble of requesting the cancellation due to extenuating circumstances and let Airbnb deal with it all.

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Are they offered the choice of “extenuating circumstances” when they go through the steps of cancellation??? If so that would explain why all mine get their money back through air bnb… (which is why I had decided to just become the “nice guy” from here on, but now we are presented with this problem…)

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It IS how they do it. Isn’t that dumb? They charged the guest when they booked, but are holding that (probably in a nice offshore investment account) until the guests’ original check in in December. If you do the nice thing and refund, it comes from your October booking. (The money they’ve been holding since THAT guest booked in August)

The other downside is that if their payment fails (they cancel the CC between now and then) Air won’t pay and you’ve already refunded from your pocket.

SOLUTION: Rather than refunding on the website, call Airbnb and have them handle the cancellation (‘cancel by admin’). The guest is refunded fully. Nothing comes from your pocket. Simply no payout in December.

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So wrong on so many levels. I don’t understand how they have this facade of a “conscious company” but secretly steals money from all angles. I know some of you may not consider it stealing, but I do.

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It’s not secret either. If if were, we wouldn’t know about it. I’m not defending Airbnb but the reality is that lots of companies make money on the “float.” Money comes in faster than it goes out and that money is held in accounts that earn interest.

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PayMode makes a large fortune on this “float”. I get around $2.5 to $4.0 M via Paymode every year, they hold the funds sent for 72 business hours min. before releasing to me.

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Even after I get the e-mail from Airbnb that my payment has been released, my account says pending and it takes up to 3 days to actually receive the funds. I always get it on the morning of the 3rd day. The banks have always claimed it’s because they are trying to prevent fraud, but as fraud detection has become much better and much more automated, the processing time stays the same. They are just floating the money as long as they can.

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I didn’t know about it. And I’m sure lots of people don’t know about it… That’s what I meant by secret… I guess since it is possible to find out (i.e. if someone was reading this post), it’s not a “secret” but had I known what they were going to do before I issued a “refund”, I wouldn’t have done it. Sorry, a REFUND is not taking money out of my account and pay someone else.

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This is what I do as well.

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Are you saying they take out of your bank account.? As I remember when I issued refund it would come out from future reservations .

I am.not sure what’s the whole comotion is about . Many business operate like this …if not most .

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No, not from the bank account. And I’ve never seen this behavior in another business.

Airbnb is playing a shell game. They take the guest’s payment, hide it under a shell and say “locked up until check-in day!”
(Air does some sleight of hand magic trick, where half the guest’s money is under the shell, and half they’ve stolen from the table and put in their pocket.)
Guest says “I need to cancel”
Air lifts up the shell and hands them that half back and says “so sorry, the other half is all locked up until check-in. Why don’t you ask the host?”
Host says “Sure, we’re good. Hey Air, hand them the other half of their money.”
Rather than put their hand in their own pocket to return the other half, Air reaches across the table and steals the money from the host’s pocket.
Host: "Hey wait a sec. That’s money I already earned! (And you already made money on that float). For fuck’s sake, you have the guests’ money! I can see that huge wad of cash in your pocket. Just hand it over!
Airbnb: Laughs in high interest bonds.

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I am still trying to understand …from what account they take other half out if it’s not from bank account ? If you never even received anything from them

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