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How to set up Security Deposit & Damage waiver collection

Steps required to set up Security Deposits in your ChargeAutomation account.

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Written by CATeam CA

Select the Booking Source

Go to Settings > Auto Payments. Select the Booking Source. We will choose Booking.com as an example.


Configure Security Deposit & Damage Waiver

Once you select the booking source, click Security / Damage Deposit. This will expand the section and display the available settings.

  • Security Deposit Settings

    • Amount Type:

    • Fixed Amount

    • % of Booking Amount

    • First Night

  • When to Authorize:

    • Choose when the Security Deposit authorization should be initiated, from Immediately to 365 days before check-in.

  • Damage Waiver Settings

To offer guests the option of choosing a Damage Waiver, enable the Damage Waiver option. When enabled, guests can choose between:

  • Refundable Security Deposit - an authorization hold placed on the guest's card.

  • Damage Waiver - a non-refundable fee that provides protection against eligible accidental damages.

Configure the Damage Waiver pricing and coverage:

Damage Waiver Pricing:
Set the amount the guest will pay for the Damage Waiver.

Charge Frequency:

  • Per Stay

  • Per Night

Coverage Limit (Optional):
Set the maximum amount covered for accidental damages. For example, you can set the coverage limit to $1,000.

If the Damage Waiver is disabled or the booking is not eligible for it, the Security Deposit will be used instead.


Enable Security Deposit & Damage Waiver

Once you have completed the required fields, turn ON the switch beside Security Deposit & Damage Waiver.

You will notice that Booking.com will automatically turn ON as well.


Keep extending the authorization until the end of checkout

Enable Keep extending the authorization until the end of checkout under Settings > Auto Payments to keep a security deposit hold active through checkout.

When enabled, ChargeAutomation releases the current hold and requests a new one, typically every 7 days or shortly before the existing hold expires. It does not extend the original hold.

The guest may need to approve the new authorization. If they don't, the deposit remains in Awaiting Approval, and the previous hold has already been released.

When disabled, the original hold expires naturally, usually after 7 days, without re-authorization.
After checkout, an unused security deposit authorization hold is released according to the schedule configured in your security deposit settings.

  • Automatic release: Choose a release period of 2 to 7 days after checkout

  • Manual release: You can release the security deposit hold manually at any time

You can manage these settings under Settings > Auto Payments, in the security deposit section for the relevant booking source.


Copy the Settings to Other Booking Sources

You do not need to configure each booking source individually.

To apply the same settings to another booking source, select the next booking source and choose Copy settings from.

A dropdown containing the applicable booking sources will appear. Select the booking source you have already configured to copy its settings.


Important: Guest Protection Selection

When both Security Deposit and Damage Waiver are enabled and the booking is eligible, the guest can choose their preferred protection option during the guest journey:

Refundable Security Deposit or Non-Refundable Damage Waiver.

The Damage Waiver is presented as a payable item during the Payment step. If the Damage Waiver is disabled or the booking is ineligible, the Security Deposit is used instead.

For more information about Security Deposits and Damage Waivers, visit the Security Deposit & Damage Waiver FAQs article.

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