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Glossary
TL;DR
A pre-authorization deposit is a temporary hold on a customer's card (not a charge) as security against damage. The payment gateway guarantees the funds without actually moving them – the hold lifts on return.
A pre-authorization is a payment gateway mechanism (Stripe, Adyen, Tpay) 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 return without damage the hold expires (1–7 days); on damage, the rental can capture part or all of the amount.
Flow: 1) Customer enters card details at online booking (or on tablet at pickup). 2) The system requests pre-auth from the gateway for the set amount (e.g. €500). 3) The gateway contacts the card issuer, blocks the funds, returns an authorization ID. 4) Funds are unavailable to the customer but not in the rental's account. 5) On clean return, the rental issues a 'void' – the hold disappears. 6) On damage, the rental captures the needed amount – funds move to the rental account, the rest of the hold releases.
Without pre-auth, the rental has two bad options: collect deposit in cash (logistical nightmare, refunds take days) or charge the full amount with intent to refund (customer sees an actual €500 charge, lower conversion, banks flag repeating transactions). Pre-auth is industry-standard – without it the rental looks amateur.
You handle the deposit through your own payment gateway – OneRental never touches rental money. Set the amount per vehicle type in its card (e.g. economy €200, premium €700), and see the hold, capture and release on the reservation and in the Reservation Ledger (audit trail). Automatic pre-auth renewal before expiry on long rentals is on the roadmap.
Discover how OneRental can help you streamline operations, boost revenue, and elevate the customer experience.