What is the best way to pay for your timeshare rental?

Listed below are several of the most common ways that consumers pay for timeshare vacation rentals and a brief explanation of the benefits and risks associated with each payment method.

* Escrowed Payment Through a Trusted Broker
This is the recommended method of payment for a timeshare vacation rental.

•  The broker will verify the details of the reservation.
•  Rental payment is disbursed to the timeshare owner after check-in.
• ​Your payment is protected no matter how far in advance you book the rental.

* Independent Third Party Rental Escrow Service 
This is a safe method of payment for a timeshare vacation rental, but can be costly.

•  Rental payment is disbursed to the timeshare owner after check-in.
• ​Your payment is protected no matter how far in advance you book the rental.
•  Acts as intermediary in cases of fraud.

• Charges a transaction fee for services (estimated between $150 to $300 based on the rental price).
•  The escrow service does not normally verify the reservation details. The renter must dispute the release of escrow after check in, which triggers an investigation and arbitration process.
• The escrow service normally requires transactions be submitted at least ten days prior to check in. 

* Credit Card 
This is a safe method of payment, as long as the reservation occurs during your card's dispute period.

• Immediate and convenient payment method.
• The renter may be able to dispute the payment with their credit card company. Check with your card provider to ensure you know the allowed window for a dispute to be filed. Most cards allow up to ninety days after payment. 

* Debit, Check & ATM Cards 
This is not a recommended form of payment.

•  Debit and ATM cards have fewer protections by law when compared to traditional credit cards. Check with your bank to ensure you understand your bank's policies regarding payment disputes.
• Funds are immediately debited from your account. In some cases, your bank may place a hold on funds even if the charge attempt is declined. Declines are common, as many bank cards have daily limits and are aggressive with unrecognized or unusual charges. Before paying with a bank card, be sure to contact your bank to preauthorize the charge.

* PayPal
This is not a recommended form of payment for a timeshare vacation rental.

•  Protects your personal credit card information. However, most credit card companies offer one-time usage "virtual" card numbers as a benefit which accomplishes the same thing 
•  PayPal may not allow disputes to be filed for real estate and travel related purchases. For more information, please read about PayPal's Purchase Protection Program

* Western Union & MoneyGram Wire Transfer 
NEVER make payment via a wire transfer.

•  This is the most common form of payment requested by scammers.
• There are no protections for consumers.

* Personal Checks- Money Orders- Cashiers Checks
NEVER make payment using a personal check, money order, or cashiers check.

•  There are no protections for consumers.

* Wire Transfer- ACH Payment- Electronic Check
NEVER make payment using a wire transfer, ACH payment, or electronic check.

• There are no protections for consumers.