Damage Deposit/Credit Card Hold

Our glamping hotel has outgrown simply being listed with Airbnb. The majority of our bookings are now reserved via Booking.Com, Airbnb , and Expedia. As we add accommodations and infrastructure to the desert glamp we’re looking for CC processors who provide us the ability to perform credit card holds in the amount of the damage deposit. Suggestions, advice?

Stripe and Square both offer this

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I inquired with Square. They stated that they do not.

I have an account with Square and I take the deposit upfront, and refund if no issues. It isn’t a hold exactly, bc I have the funds to keep, should I need to. If they do more damage than my deposit, it could be a problem, but I haven’t had any issues yet. Maybe it keeps people honest? Knock on wood …


Yeah I didn’t clue in on the word “hold”. You “hold” the funds in your account, then refund it, less deductions, after checkout.


Thank you. It costs you to take and refund? Being charged twice? What is the cost?

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Have you tried PayPal? I use it for all my direct bookings and it has worked out well for me. I don’t know about the hold feature, the business version may offer that.

Do you take a damage deposit? How do you return it without incurring charges?

I do not charge a deposit on direct bookings as they are known guests, but I don’t see how it would be a problem. I send them the amount required for their stay and request 50% upon booking with the balance due upon checkin. If they cancel 5 days out or more I just PayPal the money back to them. I see no issue with adding a security deposit to the initial total and refunding that portion after their stay.

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Are you charged to refund or do you send via friends and family?

I have not been charged yet. I think I might have all of my contacts as friends and family but really have not refunded much at all as I don’t take deposits.

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You must, I pay I think 2.75% per transaction and $24.99 per month. I do have a business account with them though. As to deposits I ask for a copy of the front and back of credit card with ID. They must also sign I can charge XXX if needed. This is for direct bookings only.

@LiveOakVineyard I do not have the PayPal business account as I stated previously. And in the 3 years that I have been using the non-business version, I have neither paid a transactional fee nor incurred a monthly charge. I also have my Airbnb income directly deposited to PayPal and I have it by 10:00 am the morning after the guest checks in. Even on weekends. When I was depositing to my bank, a Friday check-in didn’t show up in my account until Tuesday or Wednesday. Also, all my direct books are return guests or friends of guests. I do not have them sign anything at anytime and I also don’t ask for copies of credit cards. I do about half of my business as direct books but probably not the volume you have.

PayPal non-pro account charges 2.7% “in-store” and 2.9% online. Refunds are no charge.

So a guest arriving and you charge a $250 damage deposit to be refunded IF all is well upon check out the fee to you is $6.75. Again to refund the monies is free. How to bury that $6.75 in the cost to the guest? Refund minus this fee?

Also, any hosts use Clover?

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