Introduction to Automated Pre-Auth and Manual Pre-Auth
In Hostaway, pre-authorization (pre-auth) is a process where a specified amount is temporarily held on a guest's credit card to cover potential incidental charges or damages. This hold reduces the guest's available credit but doesn't immediately withdraw funds.
Manual Pre-Authorization:
Hostaway now allows the creation of manual pre-authorizations within its platform. To initiate a pre-authorization manually, you would need to log into your Dashboard and add a new type of “Manual Charge”. You can specify any amount smaller than the total amount of the Total booking reservation amount.
Automatic Pre-Authorization:
Hostaway allows for automated pre-authorizations through its Auto-Payments feature. This involves setting up an auto-payment schedule that includes a pre-authorization charge. You can specify the amount and timing (e.g., a certain number of days before check-in or check-out). This setup ensures that the pre-authorization is applied consistently for all relevant reservations.
Create a Manual PreAuth
There are two ways to “Add Transaction” on the Hostaway dashboard: either through the Reservations section or via the Guest Payment Page.
Option 1: Reservations
Go to the Reservations tab > Click Reservations in the drop-down > Select the exact reservation you want to add a transaction to
Scroll down > Click the “Add Transaction”
Option 2: Guest Payment
Go to Guest Payments > Charges > Select Add Transaction
Click on Type > Select PreAuthorization
Add description (optional) > Select Reservation > Add Amount > Select Payment Method > Click Add Pre-Authorization
- Amount must be less than or equal to the total amount Due
- Pre-Authorization can only be created with the status “Awaiting hold”. Once the Pre-Authorization is created on the Payment service provide (PSP, e.g, Stripe), the status will change to either holdSuccess or holdFailed
- Please note: If the payment method is “Payment Link”, the status will remain as awaitingHold
The PreAuth can then be seen in your list of Charges
Creating an automated Pre-Auth
Go to Guest Invoices > Auto Invoice > Create new Auto Invoice
In Auto Charges, select Type and fill in with the desired amounts
Pre-Auths can be created through Auto Charges without the need to create an auto-charge.
Capturing Fully or Partially
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:
Type in the amount to capture:
Capturing can only happen once. If the customer makes a partial capture, Stripe will immediately refund the rest of the held amount to the guest’s credit card. This behaviour is Stripe’s and cannot be changed.