Pre-authorisation deposit
A pre-authorisation deposit is a temporary hold on a customer's card (not a charge) as security against damage. The payment gateway secures the funds without actually moving them, and the hold lifts on return.
Definition
A pre-authorisation is a payment gateway mechanism where the rental reserves a specific amount on the customer's card as a security deposit. The funds are blocked but not collected: the customer sees a 'temporary hold'. On a return without damage the rental cancels the hold or it expires after a few days; on damage, the rental can capture part or all of the amount.
How it works
A typical flow in a system connected to a payment gateway: 1) Customer enters card details at online booking (or on tablet at pickup). 2) The system requests a pre-authorisation from the gateway for the set amount (e.g. €500). 3) The gateway contacts the card issuer, blocks the funds, returns an authorisation ID. 4) Funds are unavailable to the customer but not in the rental's account. 5) On clean return, the rental issues a 'void' and the hold disappears. 6) On damage, the rental captures the needed amount: funds move to the rental account, and the rest of the hold releases.
Why it matters for a rental company
A pre-authorisation secures the cost of possible damage, and the customer's money stays in their account unless it has to be taken. Without one, the rental takes the deposit in cash, or charges the full amount and refunds it later, and the customer sees an actual charge of, say, €500. In car rental a card hold is common practice.
What OneRental does
In OneRental you take the deposit at pickup (cash, card terminal, bank transfer or BLIK) and record it on the booking. The booking's payment history shows the deposit received, returned and applied to charges, and entries can't be edited or deleted. You set the deposit amount in the rental package, and a setting lets you keep the deposit when a customer doesn't show up.
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