Security deposits help protect your property from potential damage. When a guest books through your Direct site, Hospitable can automatically collect a security deposit before check-in and release it after check-out — no manual work required.
This article explains how the process works end-to-end, how to set it up, and how to troubleshoot common issues.
Security deposits for Direct bookings are available on the Direct Premium plan. Hosts on Direct Basic can display a deposit amount on their listing, but automatic collection is not supported.
How Security Deposits Work
The Deposit Timeline
Hospitable handles security deposits automatically on a fixed schedule:
2 days before check-in — Hospitable attempts to collect the deposit from the guest's payment method. Depending on the card network and issuing bank, this may appear as a hold (pre-authorization) or a charge.
During the stay — The deposit remains secured. If any damage occurs, you can submit a charge request.
2 days after check-out — If no charge request is submitted, the deposit is automatically released back to the guest.
Hold vs. Charge
Whether the deposit appears as a hold or a charge depends on the guest's payment method, card network, and issuing bank — not on any setting you control.
Hold (pre-authorization): The amount is reserved on the guest's card but not actually charged. When released, it disappears from the guest's statement.
Charge: The amount is charged to the guest's card. When released, the guest receives a refund.
In both cases, the guest's funds are secured, and the process is automatic.
Setting Up Security Deposits
Go to Properties → [Choose Property] → Pricing → Security Deposits in your Hospitable dashboard.
Under Security Deposit, choose Who collects the deposit from guests? (Automatic or Manual)
Set your deposit amount (between $100 and $5,000).
Save your changes.
A 2% processing fee applies to all security deposits. This fee is deducted from the deposit amount when it is collected.
Supported Currencies
Security deposits are currently supported in USD, GBP, and AUD. Additional currencies are planned for the future.
Understanding Deposit Statuses
You can track each reservation's deposit status from the Inbox. Here's what each status means:
Status | What It Means |
Pending | The reservation is confirmed, but the deposit has not been collected yet (check-in is more than 2 days away). |
Scheduled | The deposit collection is scheduled and will be attempted 2 days before check-in. |
Secured | The deposit has been successfully collected from the guest. |
Released | The deposit has been returned to the guest (either automatically or after a charge request was resolved). |
Submitting a Charge Request
If a guest causes damage to your property, you can submit a charge request to claim part or all of the security deposit.
Open the reservation in your Inbox.
Navigate to the deposit section and select Submit Charge Request.
Enter the amount you want to claim and provide a description of the damage.
Submit the request.
You must submit your charge request within 48 hours of check-out. After this window closes, the deposit is automatically released. All claims must be submitted at the same time — you cannot submit multiple separate requests for the same reservation.
Learn more about how to submit a charge request.
Waiving a Deposit for a Specific Reservation
If you want to skip the deposit for a particular guest — for example, a returning guest or a personal booking — you can waive it on a per-reservation basis.
Open the reservation in your Inbox.
Look for the Remove Deposit option in the deposit section.
Confirm the removal.
The deposit will not be collected for that reservation. This does not affect your default deposit settings.
⚠️ Note: Once you Remove Deposit, you cannot re-add the deposit for the reservation. You'll need to collect the deposit off-platform if you decide you'd like to collect it after removing it.
Guest Communication
Hospitable keeps your guests informed throughout the deposit process automatically:
At booking — The guest is notified that a security deposit is required.
In the Guest Portal — Guests can see the deposit amount and provide their payment information.
1 day before collection — The guest receives an email reminder that the deposit will be collected the next day.
On release — The guest is notified when the deposit has been returned.
If a guest has not provided payment information for the deposit, Hospitable will withhold scheduled pre-check-in messages until the guest completes the payment step in the Guest Portal. This ensures the deposit is secured before the stay begins.
Learn more about Guest Communication for Security Deposits.
Troubleshooting Common Issues
Below are the most frequently reported issues based on real customer conversations, along with the steps our Support team recommends.
Deposit Not Being Collected
If a deposit fails to collect 2 days before check-in:
Check the guest's payment status. Open the reservation and look at the deposit section. If the guest has not entered valid payment information in the Guest Portal, the deposit cannot be collected. Hospitable automatically notifies the guest to update their payment method.
Review the reservation status. Cancelled, modified, or rescheduled reservations may affect deposit scheduling. If the dates changed, the deposit collection window recalculates automatically.
Wait for the scheduled window. Deposits are only collected 2 days before check-in. If check-in is further out, the status will show as Pending — this is normal.
Troubleshooting security deposit release
Verify your bank account. Go to Settings → Payments & payouts → Bank accounts and confirm your bank account is verified. An unverified bank account is the most common reason deposits fail to release.
Guest Says They Were Charged Instead of a Hold
This is one of the most common guest questions. Whether the deposit appears as a hold (pre-authorization) or a charge depends entirely on the guest's bank and card network — not on any Hospitable setting.
Here's what to tell the guest:
The deposit will be released automatically 2 days after check-out if no damage claim is made.
If it appeared as a charge, the release will show as a refund on their statement.
Refund processing times vary by bank and can take 3–5 business days to appear after release.
If the guest's bank shows it as "pending," it will drop off their statement once released — no refund transaction is needed.
Deposit Shows as "Pending" Close to Check-in
The deposit status moves from Pending → Scheduled → Secured as check-in approaches. If it still shows as Pending within 2 days of check-in:
Confirm the guest has completed the payment step in the Guest Portal.
Verify your bank account is connected and verified under Settings → Payments & payouts.
Check whether the reservation has been modified or the dates changed recently.
If everything looks correct and the deposit still hasn't moved to Secured, contact Hospitable support.
Guest's Payment Failed
If the deposit collection attempt fails:
The guest automatically receives a payment failure notification with instructions to update their payment method in the Guest Portal.
Hospitable pauses any scheduled pre-check-in messages to the guest until the deposit is secured. This ensures the guest addresses the payment issue before receiving stay details.
Once the guest updates their payment method, Hospitable retries collection automatically.
You do not need to take any manual action — but you can check the deposit status in the reservation details to monitor progress.
Deposit Not Released After Check-out
Deposits are released automatically 2 days after check-out. If the deposit still shows as "Secured" after this window:
Check whether a charge request was submitted — an open charge request pauses the automatic release until it is resolved.
Verify that the check-out date has actually passed (sometimes date confusion causes false alarms).
If no charge request exists and more than 2 days have passed since check-out, contact Hospitable support for assistance.
Guest Asking Where Their Refund Is
After a deposit is released, guests often expect to see the funds back immediately. Here's what to communicate:
The deposit was released on [date] — 2 days after check-out.
Depending on the bank, it can take 3-5 business days for the refund or hold release to appear on their statement.
If it was a hold, it may simply disappear from pending transactions rather than appearing as a refund.
If more than 5 business days have passed and the guest still doesn't see the funds, suggest they contact their bank directly, as the release has already been processed on Hospitable's end.
Frequently Asked Questions
Can I set different deposit amounts for different properties?
Deposit amounts are configured at the Direct site level under Properties → [Choose Property] → Pricing → Security Deposits. If you have multiple Direct sites, each can have its own deposit amount.
Is there chargeback protection?
Yes. Security deposits collected through Hospitable include chargeback protection.
Can I use security deposits for manual reservations?
No. Automatic security deposits are only supported for reservations made through Direct, Airbnb, and Booking.com. Manual reservations do not support automatic deposit collection.
Does the deposit work on Airbnb and Booking.com too?
Yes. Hospitable security deposits are available for Direct Premium, Airbnb, and Booking.com reservations for users on Host, Pro, or Mogul plans. This article focuses on Direct, but the core mechanics are the same across channels. Learn more about Security Deposits on OTA platforms.
What happens if I don't submit a charge request?
The deposit is automatically released to the guest 2 days after check-out. No action is needed from you.
Can I change the deposit amount for an existing reservation?
No. The deposit amount is locked in at the time of booking. Changing your deposit settings only affects future reservations.