Can You Use Zip for Hotels?

Buy Now, Pay Later (BNPL) services offer consumers a way to divide purchases into smaller, manageable payments. Zip, formerly known as Quadpay, allows individuals to spread the cost of a purchase into multiple installments. This financial tool applies to various online and in-store transactions, and its use for hotel reservations involves understanding Zip’s virtual payment methods and merchant relationships.

Using Zip for Hotel Bookings

Hotels typically do not accept Zip directly as a payment method. However, you can use the service for reservations by generating a one-time use virtual payment card through the Zip mobile application. This virtual card functions like a regular credit card for online transactions, allowing you to complete your hotel booking on most platforms.

Open the Zip app on your mobile device and select the option to make an online purchase. Input the total amount for your hotel booking, ensuring it covers the full cost including taxes and any booking fees. Upon approval, Zip generates a unique virtual Visa card number, expiration date, and security code (CVV) for a single transaction up to the approved amount. Some online travel agencies (OTAs) and travel providers, such as Hotels.com, TripAdvisor, Booking.com, and Hotwire, have direct integrations with Zip, allowing you to select “Pay with Zip” at checkout.

Understanding Zip Payment Terms

Zip’s standard payment model is “Pay in 4,” splitting the total purchase into four equal installments. The first installment is due at checkout when you confirm your hotel reservation. Subsequent payments are automatically deducted from your linked debit or credit card every two weeks, spreading repayment over six weeks.

Zip generally does not charge interest on its “Pay in 4” installments. A small installment fee is typically applied to each payment, often $1 per installment, resulting in a total of $4 for a four-payment plan. Potential late payment fees apply if an installment is missed. These fees can vary, ranging from approximately $5 to $10, with the exact amount sometimes depending on the state of residence and the purchase amount. Zip provides notifications to help you stay on track with your payment schedule.

Completing Your Hotel Reservation

After obtaining virtual card details from the Zip app or selecting Zip on a partner platform, finalize your hotel reservation. Enter the virtual card number, expiration date, and CVV into the payment fields on the hotel booking website, just as you would with a physical credit card. Once the payment information is submitted, the booking platform will process the transaction, and you will receive a confirmation.

Hotels often place a pre-authorization hold for incidentals, such as minibar charges or room service, in addition to the room rate and taxes. While your Zip virtual card covers the room and tax, hotels typically require a separate, traditional credit card for these incidental charges. You will likely need to provide a personal credit card at check-in for any extra costs.

Hotels commonly maintain two separate folios for guests using virtual cards: one for the pre-paid room and tax covered by the virtual card, and another for additional charges billed to your personal card. Should a refund be necessary, the process for BNPL services may take longer than a direct credit card refund, as it often involves merchant approval before Zip processes it.