Using an authorization hold allows you to freeze funds on a guest's credit card for a limited time.
This is typically used in the hospitality industry to guarantee payment for the reservation, though a hold can also be used to secure funds for potential damages or for any other purpose.
The hold expires automatically after seven days (five days on Visa credit cards) but you can charge or release the funds manually at any point during that time.
Note:
You cannot add an authorization hold with a Virtual Credit Cards (VCC).
Charge an authorization hold
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode selector and select Financials mode.
- Click Reservations.
- Click the relevant reservation.
- At the top right, click Balance due/Payout.
- In the "Payment" section, locate the relevant payment line with an "Authorization hold" under "Transaction type". Click Charge now.
- In the pop-up, click Yes, charge payment.
Two line items will now appear:
- The original transaction type "Authorization hold", in status "Completed"
- A new transaction type "Charge" in status "Approved"
Releasing an authorization hold
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click Reservations.
- Click the relevant reservation.
- At the top right, click Balance due/Payout.
- In the "Payments" section, click Payment actions and select Release now.
- In the pop-up, click Yes, release now.
The transaction type will remain "Authorization hold" and the status will update to "Funds released".
When an authorization hold is released without being charged, the amount will simply disappear from the cardholder's credit card statement. These are funds that are held aside and not actually charged.