Charging and releasing an authorization hold

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.

Authorization holds can only be charged in the full amount of the hold. For example, if you place an authorization hold of $500, you cannot collect $300 and release the remaining $200. If you want to collect only part of the funds, you must collect the full amount and refund the difference.

Charge an authorization hold 

Step by step:

1. Sign in to your Guesty account.
2. In the top navigation bar, click More and then select Reservations.
3. Click the relevant reservation.
4. At the top right, click Balance due/Payout.
5. In the "Payment" section, locate the relevant payment line with an "Authorization hold" under "Transaction type". Click Charge now.
6. 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"

Release an authorization hold

Step by step:

1. Sign in to your Guesty account.
2. In the top navigation bar, click More and then select Reservations.
3. Click the relevant reservation.
4. At the top right, click Balance due/Payout.
5. In the "Payments" section, click Payment actions and select Release now.
6. 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.