Security Deposit Management
Problem - different OTA's handle the short escrow period for damage aka Security despots. Payment processors such as Stripe do not escrow for periods long enough for most reservations. Client reserves their summer vacation 90 days from now for example,
Solution: Hostaway to setup a service offering like VRBo, AirBNB, and others that take and hold the security deposit and release it back to the guest seamlessly.
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Official comment
Hey Leigh,
The method that Tommy recommended above is typically what we suggest users do, however I'll pass your request along to our Product Team. -
This is currently accomplished by automating a pre-authorization hold. That's how we do it. The issue with charging and then refunding a security deposit is that you'd still have to pay the credit card processing fees for that around 3%.
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The workflow for requesting a security deposit by pre-authorisation via HA must improve to cover different operator scenarios.
We use payment by booking, so we do not have guests' card payment details. So before we can process the SD we have to ask the guest to ADD PAYMENT METHOD on the Guest Portal. This causes friction, so it needs to be as smooth as possible.- Add a clearly defined Security Deposit section in the guest portal or the online check in section triggered by operator parameters such as portal, or in the case of Airbnb - a new guest with no reviews and no bookings.
- Guide and explain to the guest about the SD with an information pop up defined by the operator.
- Add a status section to show REQUIRED / AUTHORISED / RELEASED or CHARGED
- We already offer a Waiver Fee option however this is in the extras/upsells section but should be moved out.to a new Security Deposit.
0 - Add a clearly defined Security Deposit section in the guest portal or the online check in section triggered by operator parameters such as portal, or in the case of Airbnb - a new guest with no reviews and no bookings.
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