This article explains how the standard security deposit hold procedures work and how to leverage the extended hold feature for longer stays.
Standard Security Deposit Hold
Initial Payment Validation
When a guest completes the Security Deposit screen, in the Autohost Guest Portal, the guest will submit their credit card information, and a $2 payment validation is automatically held to:- Validate that the card is legitimate and has funds
- Allows Autohost to run fraud detection and payment verification
- Allows Autohost to flag a possible name mismatch to the ID uploaded (if applicable) and the name on the reservation
Payment is held as a pending transaction with an automatic release within 7 days.
Note: If the security deposit screen of the guest portal is completed within the 'Days before check-in' settings specified day (between 1-7 days), the payment validation will automatically be skipped to attempt to hold the security deposit instead.
Customize your Security Deposit Schedule
The Security Deposit hold is customizable to your desired preference to begin between 1 to 7 days prior to check-in. Once held, it will automatically be held for 5-7 days dependent on the credit card used. The held transaction will automatically release and renew until X days (customizable preference of 1-7 days) after check-out. To set your Security Deposit settings, review the Security Deposit Screen article here.
Note: The number of days a security deposit is held for (renewal) is dependent on the credit card used.
Visa card holders will have an automatic five day hold.
All other credit cards are automatically held for seven days.
Review a Standard Hold Example
For this example, we will use the screenshot above, where the security deposit settings placed by the property manager are set to begin one day before check-in, and to stop the renewal one day after check-out.
Example Reservation:
On September 1st, John Doe booked a reservation for December 1st through Decemeber 7th. A reminder email prompted John to complete the Guest Portal, so he completed the Guest Portal, along with the Security Deposit screen on November 1st. When completing the security deposit screen of the guest portal, he submitted a Mastercard for the payment validation.
Example timeline of the transaction activity from the above reservation details:
*September 1st: John made his booking on VRBO, payment for stay was collected from the host. (Note: Unless payment transactions are explicitly sent to Autohost via custom API, this credit card transactions is not considered for verification)
*November 1st: John completed the Guest Portal, submitting his credit card information on the Security Deposit screen. Payment Validation of $2 held, with an automatic release within 7 days.
*November 30th: Security Deposit of the specified amount is automatically placed, held from the same card as the pre-authorization.
*December 1st: John Doe checks-in.
*December 7th: Whilst this is the guest's check-out date, the specified security deposit is automatically released, and a new pending transaction of the original security deposit amount is reheld for 7 complete days (as it has not met the rule of 'stop security deposit renewal 1 day after check-out')
*December 14th: Security Deposit previously held is automatically released.
Extended Hold
If the card network and merchant category allow, an extended hold of up to 30 days is possible. Refer to Stripe for account, network and merchant category eligibility.
If the 'Extended hold' toggle is on, this setting will refer to reservations equal to or more than 7 days, in which the hold will be automatically held for 30 days, with an automatic release based on the setting 'Days after check-out to stop security deposit renewal'.
For example:
John Doe books another reservation on December 1st, for January 1st through January 15th. He completes the guest portal on December 15th, where he utilizes the same Mastercard as before.
Transaction Summary:
*December 1st: John Doe books reservation.
*December 15th: John Doe completes the guest portal, a $2 pre-authorization is held, with an automatic release within 7 days.
*December 31st: Security Deposit of the specified amount is automatically placed, held from the same card as the pre-authorization.
*January 1st: John Doe checks-in.
*January 15th: John Doe checks-out.
*January 16th: Security Deposit held is automatically released.
Note: For reservations exceeding 30 days:
If the reservations suprasses 30 days, but less than or equal to 35 days, on the 30th day it will revert to the standard hold of 7 days (or 5 days for Visa cardholders).
If the reservation surpasses 35 days, it will automatically renew for another 30 days, releasing at X days (1-7 following the 'Days after check-out to stop security deposit renewal' setting) after check-out.
To enable an extended hold, utilize the 'Enable extended holds' toggle as shown below, on the Security Deposit Screen:
For more information Security Deposits, please refer to the following articles: