---
title: Understanding How Payments Work on Hostelworld
description: "On Hostelworld, the payment process takes place in two steps: At the time of booking: The guest pays a percentage to secure their booking. This payment is retained by Hostelworld as a service fee/ com"
---

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# Understanding How Payments Work on Hostelworld

On Hostelworld, the payment process takes place in **two steps**:

1. **At the time of booking:**  
   The guest pays a percentage to secure their booking. This payment is retained by Hostelworld as a service fee/ commission.
2. **At check-in or according to your property’s policy and rate chosen:**  
   The **remaining balance** must be paid **directly to the property**, following the terms and conditions set in your profile.

---

### **1. How the remaining balance is charged**

You can choose between two ways to collect the remaining payment:

#### **Option 1 – Payment at check-in**

The guest pays the balance **only upon arrival at the property**.

💡 **Important recommendation:**  
We strongly suggest collecting the payment **at the time of check-in** to avoid any issues or inability to charge later.

---

#### **Option 2 – Advance payment**

You set a deadline and provide a payment method.  
Examples of accepted methods:

- Manual card charge
- [Paynow](https://support.hostelworld.com/knowledge/paynowguide?hsLang=en)– automatic charging for NRR only
- Payment link (PayPal, etc.)

📌 **Note:**  
The PayNow feature is only available in certain countries and for **Non-Refundable rates ONLY**.

⚠️ **Important:**  
If you choose to request advance payment, this rule must be **clearly stated in your profile policies**, in **all languages**.

 

---

#### **2. Example policies to include in your profile**

Here are examples of **Advance Payment or Non-Refundable Policy conditions** that must be clearly stated in your profile, according to your own rules:

- After the booking is confirmed, advance payment will be required.
- The payment amount may be **100% of the total** or **X% of the remaining balance**.
- Payment must be made **immediately after confirmation** or within **24h / 48h / X days**.
- The guest must contact the property to arrange payment. *(optional)*
- The property will contact the guest to arrange payment. *(optional)*
- Payment can be made via: **manual card charge, CVV request, payment link (PayPal, etc.)**.
- If payment is not completed within the set timeframe, the booking will be **canceled**.
- The remaining balance (if partial payment was made) must be paid at check-in. *(optional)*
- The amount paid in advance is **non-refundable** in case of cancellation or no-show.

---

#### **3. What to do if the guest does not pay**

If the guest does not make the advance payment according to your policy:

- Report a payment issue via your Hostelworld Inbox.
- After waiting the required period, you can **cancel the booking**.  
  [Learn how to do it here](https://support.hostelworld.com/knowledge/how-can-i-cancel-a-booking?hsLang=en).

---

✅ **Tip:** Keep your policies **clear and up to date, and translated in all languages you have translations for -** to avoid misunderstandings and ensure a great guest experience.

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