Security Deposits are processed as temporary credit card authorizations. The amount is placed on hold to cover potential damages or contract breaches, but it is not charged unless funds need to be captured. ChargeAutomation also tracks the authorization status for each booking and retains relevant payment and rental agreement records to support disputes.
See below for a list of possible Security/Damage Deposit Statuses:
DEPOSIT STATUS | STATUS DESCRIPTION |
Awaiting Approval | The Security Deposit or payment is awaiting guest approval before the authorization can be completed. |
Scheduled | Before Due Date & Card on File - Due date has not yet passed and we have credit card details for this guest on file. This payment will be charged automatically on the due date listed.
Before Due Date & No Card on File - Due date has not yet passed and we do not have credit card details on file. |
Authorized | After Due Date & Funded - Due date has passed and credit card has been successfully used to authorized the security deposit amount. |
Card Unavailable | After Due Date, Not Funded & No Card on File - The due date has passed and we have not collected the credit card details of the guest. |
Authorization Failed | After Due Date, Not Funded & Card on File - After due date has passed and while credit card has been provided, the authorization was not successfully processed.
Example: not enough fund on the card at the time of authorization |
Auto Released | Credit card authorization is scheduled to be placed on the card for a certain period of time. Once this time expires, the hold will automatically be released. |
Captured | When damages occur on the premises which warrant the full withholding of the security deposit. |
Partial Captured | When damages occur on the premises which warrant a partial withholding of the security deposit. |
Manually Released | Occasionally a guest may insist on having access to the funds on the credit card being held as part of the authorization process. In these instances and per property manager discretion, this may be completed manually. |
Overdue | After due date has passed and credit card has not been added. |
Voided | Security deposit can be manually cancelled or voided by Host OR when booking was cancelled before performing/attempting authorization. |
Not Enabled | Security deposit collection is not enabled. |
For answers to other questions about the Security/Damage Deposit feature in ChargeAutomation, visit our Security/Damage Deposit FAQ's article.
Upon the guest's stay completion, the authorized security deposit is managed as follows:
Automatically Released: If there are no reported damages, funds are released automatically 3 days after check-out. It may take 5-10 business days for the guest to see the funds available on their account.
Manually Released: In case you or any staff member release the authorization earlier than 3 days after check-out upon guest's request.
Charge Automation is a guest experience software that helps hotels & vacation rentals increase revenue, eliminate check-in queues, improve guest satisfaction, and maximize profits.