Mews Hotel Payment Processing Fees Breakdown

I’ll say this upfront: Mews is a good PMS. The software itself runs clean, and it’s no coincidence that hoteliers like it so much.

Mews also has an embedded payment solution that’s genuinely convenient. 

But “convenient” and “cheap” are far from the same thing. And while you can’t always get cheap credit card processing with an integrated or all-in-one solution, I wouldn’t even say Mews is reasonable. 

The setup is layered in a way that relinquishes some of your control in terms of what’s happening behind the scenes. So you end up paying a premium.

Let me explain what’s going on here, why your rates are so high, and what you can actually do about it (without switching PMS systems or processors).

Mews is a Payment Facilitator (PayFac)

First and foremost, you need to understand that Mews is a PayFac (not a payment processor). This slight nuance may not sound like a big deal, but it determines everything that happens whenever you accept a card payment.

Here’s how it works.

If you sign up for hotel payment processing with Mews, you’re being onboarded as a sub-merchant underneath Mews. And the actual processing on the backend is handled by Stripe or Adyen. 

It’s not obvious or outlined in plain English on any of the marketing materials from Mews, but it’s all described in the contracts:

• Cooperation Agreement that governs your use of the Mews software.
• Merchant Agreement explaining that Mews “facilitates” your payments and sets the fees.
• Sub-Merchant Agreement that outlines the relationship with the actual payment provider (Adyen or Stripe).
• Acquiring Addendum on top of everything if you’re in the US. 

The word that matters the most in the Merchant Terms is that Mews agrees to facilitate payment processing through its platform. It doesn’t say process. “Facilitate” means something completely different.

Adyen and Stripe are the ones doing the actual processing and acquiring, whereas your account is a “sub-merchant account” on the Mews platform. 

The PayFac Impact On Your Merchant Fees

As a PayFac, Mews sits in the middle between you (the merchant/hotel), and the processor (Stripe or Adyen). 

And while you may be signing something that appears to be an agreement with the backend processor, it’s not the same thing. You actually don’t have a direct relationship with the processor.

• Mews controls the provider relationship.
• Mews sets your credit card processing fees.
• Whatever Stripe or Adyen is charging on the backend is out of your hands. 
• You can’t call up either provider directly to negotiate.

Here’s something else worth knowing.

The Mews Merchant Terms says that Mews reserves the right to switch your payment provider at its sole discretion. So you don’t control who processes your cards on the backend.

This language is typically in these contracts so that PayFacs (Mews, in this case) can use whatever processor is cheaper. Just don’t expect your rates to get any lower just because they’re cutting costs behind the scenes.

There’s so much markup on the PayFac model because the backend processor and Mews both need to profit every single time you accept a card payment. 

Mews Payment Processing Fees

Mews offers two pricing models:

• Interchange++
• Blended

IC++ is typically going to be the option for most merchants. However, it’s far from cheap, and drastically more expensive than a typical interchange-plus arrangement directly with a payment processor. 

With the IC++ model, each transaction is broken down into three pieces:

• Interchange Fee — Set by card networks, paid to cardholder’s bank
• Scheme Fee — Network charges (aka assessment fees)
• Transaction Fee — Markup added by Mews

So if Mews quotes you at 1.1%++ (which they often do), it means that you’re paying a 110-point markup on top of interchange and assessment. That’s absurdly high, and 3-4x higher than we typically see for any type of integrated or embedded setup. 

The “Blended” setup is effectively a flat-rate pricing model. Mews “blends” all of the interchange, scheme fees, and assessments into a single fee for every transaction. While this sounds simpler, it’s far more expensive and the Mews markup will be even higher (though it’s less transparent because it’s all built into one cost).

How Your Money Moves Through Mews

Let’s talk about the flow of money whenever a transaction gets processed through Mews payment processing. This will help you understand everyone’s role, and where you might be overpaying:

1. A guest pays using a credit or debit card.
2. Either Adyen or Stripe processes the transaction.
3. The provider settles the money (meaning they hold it, and pay it out, after withholding fees).
4. Then Mews hands you a report showing what was taken and what’s left.

Notice what Mews does and doesn’t do in this chain. They don’t move your money at all. Yet they take the largest cut of anyone in the process. 

That’s just how the PayFac model works. Stripe and Adyen don’t care because they’re still getting paid and they operate at scale. Whatever arrangement they have with Mews gives them enough to profit, and that’s totally out of your hands. 

Mews can set their markup so high here because they have leverage. By offering you an all-in-one solution that’s PMS software, POS systems, and payment processing (among other hotel operations tools) under one roof, they’re selling you on convenience. 

If you want to have payment processing built directly into Mews this is your only option. They control what providers work with their software, and they structure everything so they sit in the middle and take a cut. 

Stripe vs. Adyen for Payment Processing With Mews

As previously mentioned, Mews runs on two payment providers: Stripe and Adyen.

Both of these are actually great processors. But with a PayFac model, you don’t really get the true benefits of using these providers as you would if you had a direct agreement with them. Mews as the facilitator effectively erases any of the perks and potential savings. 

You don’t control which of these providers processes your payments on the back end. And the only reliable way to check is by asking Mews support (your initial contract isn’t even reliable because Mews can change this at any time at their discretion). 

For this setup, it doesn’t actually matter who is processing payments behind the scenes for you because the structure remains the same. 

It’s still a PayFac model which means you’re a sub-merchant underneath Mews. 

This is confusing to some merchants because there is a “direct contractual relationship” with Stripe or Adyen at the contract level. But this is more so legal boilerplate for the providers, and it’s not the same thing as having your own independent merchant account with either processor. 

Slight Contractual Difference With Adyen for Hotels in the US

There is one wrinkle worth knowing, and it’s the closest thing to a “direct” arrangement in the whole structure. 

On the Adyen path in the US, the contract describes a tripartite arrangement between you, a “Member,” and Adyen. The Member is a regulated US bank that acts as the licensed acquirer for the card networks. So that setup adds a fourth party (you, plus an acquiring bank, plus Adyen as the processor, with Mews still facilitating everything at the top). 

This is a more formalized structure than simple aggregation. But it’s more just to appease network requirements as volume and risks climb, and still doesn’t make the account independently yours. 

One last minor detail for card terminals: Mews acts as Stripe’s authorized reseller for any terminals, whereas Adyen hardware must be purchased directly from Adyen. 

Why You Can’t Use Your Own Stripe Account

A lot of hotels ask this because either already have a Stripe account or could open one tomorrow. But you can’t use your own Stripe account in the same way that works with Mews payment processing.

Technically, you can use your own Stripe account. But you’d have to turn off the Mews automation that’s built into your software.

You’d have to process each payment manually in your own Stripe dashboard, then log back into Mews and input it as an “external payment.”

This defeats the entire point of an integrated PMS. You lose the automation and reconciliation that you’re paying for in the first place. 

The reason behind this is all centered around the original contract structure. Everything with Mews is built around a sub-merchant account. So you can’t bring in your own provider and integrate with the software.

Final Thoughts

For hotels that are already using Mews and its own built-in payment processing solution, you need to focus on the two things you can control:

• Pricing model (IC++ vs. blended) — IC++ is typically going to be cheaper
• Mews markup — How much Mews charges you on top of the network/bank fees

Unfortunately, you can’t negotiate rates directly with Stripe or Adyen. But you can negotiate with Mews. And it’s definitely in your best interest to do so.

Regardless of which pricing model you’re on, there’s a good chance you’re paying an unreasonably high markup. You can save money, and Mews will still get plenty of profit on your account. The key is just figuring out which levers to pull to get them to lower your rates.

For hotels evaluating Mews PMS and/or its payment processing system, it’s worth taking a hard look at your current situation before jumping into this. 

I’d probably advise against going against this type of PayFac setup if you can avoid it. You’re better off keeping your current processor, and finding a PMS platform that your processor can integrate with directly. 

There are plenty of other solutions on the market that offer the same or similar features as Mews. And the cost savings on the processing side is worth finding a tool that lets you keep a direct relationship with your own credit card processor.