Understanding Payments, Payouts and Fees
When a guest books your property on Lake.com, we facilitate secure payment processing and ensure a timely payout to your connected Stripe account. Here’s a step-by-step breakdown of how the process works:
How Payments and Payouts Work on Lake.com
Example Booking:
- Stay Length: 4 nights
- Rate per Night: $250
- Total Booking Amount: $1,000
- Lake.com Commission (10%): $100
- Host Payout: $900
1. Pre-Authorization at Time of Booking
When a guest completes a reservation, Lake.com pre-authorizes their credit card for the total booking amount ($1,000 in this example). This places a temporary hold to confirm available funds without immediately charging the guest.
2. Full Charge Before Check-In
Exactly 7 days prior to check-in, we automatically charge the guest’s credit card for the full amount of the stay. This ensures the funds are secured well before arrival.
3. Funds Held in Trust
Once payment is captured, the funds are held in a dedicated trust account. This provides both guests and hosts with financial protection and ensures compliance with platform standards.
4. Payout After Guest Check-In
On the day after the guest’s first night, the net payout (booking total minus commission) is released to your connected Stripe account.
In this example:
- Total Paid by Guest: $1,000
- Lake.com Commission (10%): $100
- Net Payout to Host: $900
5. Stripe Deposit
The payout is processed via Stripe and typically appears in your bank account within 1–3 business days, depending on your bank’s processing times and your Stripe payout schedule.
Why We Work with Stripe
Lake operates a secure payment system with payments processed by Stripe, an industry leader. All card numbers are encrypted at rest with AES-256. Lake’s payment system lets you list your properties, accept online bookings, and send payment requests to guests.
Summary of Timeline for Payments and Payouts
| Step | Timing |
|---|---|
| Pre-authorization | At time of booking |
| Guest charged | 7 days before check-in |
| Funds held | Until after first night |
| Host payout initiated | Day after guest’s first night |
| Funds received by host | 1–3 business days later |
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