Authorization hold are funds that you hold in addition to the reservation payments.
Authorization hold allows you to freeze funds on a guest's credit card, and it can be charged or released manually during the hold time. This is typically used in the hospitality industry to guarantee the 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 release the funds manually at any point during that time. Stripe fees are only applied when the funds held in the authorization hold are charged.
You are able to authorize a hold for an amount as big as the payout itself. The total payout will update accordingly.
If a reservation's remaining balance is already fully accounted for, you won't see the option to add an authorization hold. Additionally, the hold amount cannot exceed the outstanding balance. To add an authorization hold with a larger amount than the outstanding balance, increase the outstanding balance by adding an extra invoice item to the reservation.
Follow the instructions to add an authorization hold.
Note:
You cannot add an authorization hold with a Virtual Credit Cards (VCC).
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click More and then select Reservations.
- Click the relevant reservation.
- At the top right, click Balance Due / 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, depending on whether you are setting the hold for the current or future date.