Add Pre-Authorization to Auto Charges

This feature allows Hostaway users to hold, and capture if needed, a certain amount from guest credit cards during the reservation process as means to set up refundable damage deposits or security deposits.

Authorization hold (also card authorization, pre-authorization, or pre-auth) is a service offered by credit and debit card providers whereby the provider puts a hold of the amount approved by the cardholder, reducing the balance of available funds until the merchant completes the transaction (capture) or cancels it, or the hold expires.

Important notes:

• This feature is only available for Stripe connected accounts. Braintree is not supported
• Currently captured funds are not reported in Financial Reporting.
• Currently captured amounts are not reported in Reservation Financial Breakdown.
• At this time Pre-Auths can only be created through Auto Invoices and Auto Charges. They cannot be created manually.
• Pre-Auths can be created through Auto Charges without the need of creating an auto-charge.

Learn more with the Pre Authorisation FAQ

Creating an automated Pre-Auth

1. Go to Guest Invoicing > Auto Invoice > Create new "Auto Charge"

2. In Auto Charges select Type and fill in with the desired amounts

Capturing Fully or Partially

1. Next to the created hold line click on the three dots and click on “Capture now”. This can be done in the Charges tab of the Guest Invoicing and Reservation page:

2. Type in the amount to capture:

Capturing can only happen once. If a partial capture is done, Stripe will immediately refund the rest of the held amount to the guest’s credit card. This is a behaviour of Stripe and cannot be changed.