This feature allows Hostaway customers 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.
You can check our FAQ here
Creating an automated Pre-Auth
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Go to Guest Invoicing > Auto Invoice > Create new "Auto Charge"
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In Auto Charges select Type and fill in with the desired amounts
Capturing Fully or Partially
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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 Guest Invoicing and Reservation page:
- 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.