An authorization hold allows the freezing of funds on a guest's credit card for a limited time. This process is commonly used to guarantee reservation payments or secure funds for potential damages.
An authorization hold expires automatically after seven days, or five days for Visa credit cards. Funds can be released manually at any time during this period. Stripe fees only apply when the held funds are actually charged.
Add a manual authorization holds
Add a manual authorization hold to a reservation when the guest's remaining balance isn't fully accounted for. The hold amount can't exceed the outstanding balance of the reservation.
To authorize an amount larger than the current outstanding balance, increase the balance by adding an extra invoice item or by adjusting the guest folio.
Note:
Virtual Credit Cards (VCC): Guesty doesn't support authorization holds for Virtual Credit Cards.
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.
In the top-right corner, click Balance Due or Payout.
In the "Payments" section, click Payment actions and select Add authorization hold.
In the pop-up, enter the necessary details.
Click Hold now or Save to schedule the hold for a future date.
Add an automatic authorization hold
Set up automatic authorization holds as part of the payment automations workflow. Even when auto payments cover 100% of the reservation total, the hold is still created and funds are reserved at the scheduled time.
Limitations
Reserved funds can’t be charged if the full reservation amount is already accounted for. To charge held funds in this scenario, update the guest folio to increase the total reservation amount.
For example, a $1,000 reservation has $500 charged at confirmation and $500 charged at check-in. A $300 authorization hold is also created one day before checkout.
If the guest causes $200 in damages, you must add a $200 item to the guest folio to increase the total reservation amount to $1,200. This creates an outstanding balance, allowing you to charge $200 of the held funds. The remaining $100 of the hold is then released back to the guest.
Important:
Vrbo limitations: Vrbo doesn't support authorization holds. Any authorization hold rules set on listings are ignored for Vrbo bookings but remain active for other channels.
Step by step:
Sign in to your Guesty account.
In the top navigation bar, click the mode selector and select Operations mode.
Click Properties.
Select the relevant listing. For a multi-unit, access the main settings of the listing to apply the change to all sub-units.
In the left-side menu, click Pricing & policies, then select Auto payments.
Click Add rule and select Authorization hold.
Fill in the relevant fields.
Click Save.
FAQs
How do I charge a guest for damages using a hold?
To charge held funds when the reservation is already fully paid, add a new item to the guest folio. This creates "unaccounted for" funds, allowing the held amount to be charged without exceeding the total payout.
When are Stripe fees applied?
Stripe only applies transaction fees to the portion of the authorization hold that is successfully charged, rather than the initial amount held.