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 a 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 on 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.
- 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 to create an auto-charge
Creating an automated Pre-Auth
Go to Guest Payments > Auto-payments > Update or Create a new "Auto-Payment Schedule"
In auto-payment select Type Pre-authorization fill in the desired amount and trigger the event
Capturing Fully or Partially
In the reservations detailed section the pre-auth hold success event will show when applicable
- You can use the menu to capture partially or fully the amount as needed by using the Capture Now option
- 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 behavior of Stripe and cannot be changed. Pre-authorizations will be valid for 7 days after the hold automatically will be released when not used.