Security deposits help protect hosts from damages, excessive cleaning, or policy violations during Direct stays.
When enabled, guests see a refundable security deposit during checkout. Depending on your configuration, the deposit can be managed automatically through Hospitable or collected manually outside the platform.
This article explains how security deposits work for Direct bookings, what guests see during checkout, when deposits are collected, and how deposit statuses behave inside Hospitable.
This feature is available for Direct Premium users and is configured per property.
How Security Deposits Work
Security deposits are separate from the reservation payment.
If enabled for the booking policy:
Guests see the refundable security deposit during checkout
The deposit amount is displayed separately from the reservation total
The deposit is processed independently from the booking payment
Security deposits:
Are configured through booking policies
Use the guest’s saved payment method unless updated later
May appear separately on the guest’s bank statement
Direct booking checkout page showing the reservation total and a separate refundable security deposit amount
Who Collects the Deposit
You can choose how security deposits are handled for Direct bookings.
Hospitable Collects and Releases the Deposit
This is the recommended option.
With this setup:
Hospitable places an authorization hold on the guest’s card
The hold is typically placed 2 days before check-in
The hold is automatically released 2 days after checkout if no charges are submitted
Hosts can submit a charge request against the secured amount if needed
Guests are not charged upfront unless a damage charge is submitted.
Guests are not charged immediately when Hospitable manages the security deposit. The deposit is held as an authorization and only captured if a charge request is approved.
Host Collects the Deposit Manually
Hosts can also manage security deposits outside Hospitable.
With this setup:
Hosts collect and refund deposits manually
Hospitable does not process or release the deposit
Hosts are responsible for:
Collecting payment
Managing refunds
Handling disputes
This option is commonly used when hosts:
Collect deposits offline
Use external payment systems
Require local agreements or cash deposits
No Security Deposit
Hosts can also choose not to require a security deposit.
If disabled:
Guests do not see a security deposit during checkout
No authorization hold or deposit charge is created
Security deposit settings in Hospitable showing Hospitable-managed, host-managed, and no deposit options
When Security Deposits Are Collected
Security deposits managed by Hospitable are typically authorized 2 days before check-in.
However, if the reservation is created within 2 days of check-in:
The deposit authorization may occur immediately
The deposit still appears separately from the booking payment
Depending on the guest’s bank:
The deposit may appear as a pending authorization
The guest may temporarily see both the reservation payment and deposit hold simultaneously
Security deposits are processed separately from reservation payments even when authorized on the same day.
What Guests See During Checkout
If security deposits are enabled for the booking policy, guests see:
The reservation total
Any installment amounts due
A separate refundable security deposit amount
The security deposit:
Is not included in the reservation price
Appears separately during checkout
May appear separately on the guest’s bank statement
If security deposits are not enabled for the booking policy:
No security deposit amount appears during checkout
Security Deposit Statuses
Hosts can review security deposit statuses directly from the reservation inside the Inbox.
Pending
The reservation is confirmed, but the deposit has not yet been scheduled for authorization.
Scheduled
The authorization is scheduled for processing before check-in.
Secured
The authorization hold was successfully placed on the guest’s payment method.
Released
The authorization hold was successfully released after checkout.
Security deposit statuses in Hospitable showing Pending, Scheduled, Secured, and Released
Authorization Holds and Guest Statements
Depending on the guest’s bank and card provider, the security deposit may appear as:
A temporary authorization hold
A pending transaction
A completed charge that later disappears or is refunded
This behavior depends on the guest’s:
Bank
Card network
Financial institution policies
Authorization holds and refunds may take several business days to appear or disappear depending on the guest’s bank.
Releasing a Security Deposit
If no issues are reported during the stay:
The deposit is typically released automatically 2 days after checkout
Hosts do not need to manually release the deposit in standard situations.
Once released:
The guest’s bank determines how quickly the funds become available again
Damage Claims and Deposit Charges
If damages or policy violations occur:
Hosts can submit a charge request against the secured deposit amount
Approved charges may capture part or all of the authorized amount
The amount captured depends on:
The approved charge amount
The available secured deposit balance
If the requested amount exceeds the secured deposit:
Additional recovery outside the platform may be required
What Happens if Deposit Authorization Fails
If the deposit authorization cannot be completed:
The reservation itself is not automatically canceled
Hosts may need to contact the guest to update payment details
The authorization may retry automatically depending on the payment provider
Common causes include:
Expired cards
Insufficient funds
Bank declines
Fraud prevention blocks
Also see: Direct Booking Payment Failures
Key Things to Know
Security deposits are separate from reservation payments
Deposits usually process 2 days before check-in
Bookings created within 2 days of check-in may collect the deposit immediately
Guests may see deposits as separate charges or authorizations
Deposit appearance depends on the guest’s bank and payment provider
Security deposits are controlled through booking policies
Deposits are typically released automatically after checkout if no claim is submitted