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How to set up Security Deposit & Damage waiver collection

Steps required to set up Security Deposits in your ChargeAutomation account.

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Written by CATeam CA

Select the Booking Source

Go to Settings > Auto Payments. Select the Booking Source. We will choose Booking.com as an example.


Configure Security Deposit & Damage Waiver

Once you select the booking source, click Security / Damage Deposit. This will expand the section and display the available settings.

  • Security Deposit Settings

    • Amount Type:

    • Fixed Amount

    • % of Booking Amount

    • First Night

  • When to Authorize:

    • Choose when the Security Deposit authorization should be initiated, from Immediately to 365 days before check-in.

  • Damage Waiver Settings

To offer guests the option of choosing a Damage Waiver, enable the Damage Waiver option. When enabled, guests can choose between:

  • Refundable Security Deposit - an authorization hold placed on the guest's card.

  • Damage Waiver - a non-refundable fee that provides protection against eligible accidental damages.

Configure the Damage Waiver pricing and coverage:

Damage Waiver Pricing:
Set the amount the guest will pay for the Damage Waiver.

Charge Frequency:

  • Per Stay

  • Per Night

Coverage Limit (Optional):
Set the maximum amount covered for accidental damages. For example, you can set the coverage limit to $1,000.

If the Damage Waiver is disabled or the booking is not eligible for it, the Security Deposit will be used instead.


Enable Security Deposit & Damage Waiver

Once you have completed the required fields, turn ON the switch beside Security Deposit & Damage Waiver.

You will notice that Booking.com will automatically turn ON as well.


Keep extending the authorization until the end of checkout

Turn on Keep extending the authorization until the end of checkout if you want ChargeAutomation to keep a security deposit hold in place through checkout. This is the only re-authorization option in the security deposit settings. You will find it under Settings > Auto Payments, in the security deposit section for the booking source.

When this option is on, ChargeAutomation releases the current hold and then requests a new authorization. If the guest does not complete that new request, the original hold is already released. The deposit stays in Awaiting Approval until the guest finishes the new request.

Turn this option off if you want the original hold to expire on the card network's normal schedule instead of being replaced.

The Security Deposit is collected as an authorization hold. The authorization period typically lasts 7 to 30 days, depending on the payment gateway and card type.

For Stripe, ChargeAutomation provides access to an extended authorization window:

  • Visa: 28 days

  • Discover/Mastercard/Amex: 30 days

The Security Deposit is automatically released 3 - 7 days after checkout.


Copy the Settings to Other Booking Sources

You do not need to configure each booking source individually.

To apply the same settings to another booking source, select the next booking source and choose Copy settings from.

A dropdown containing the applicable booking sources will appear. Select the booking source you have already configured to copy its settings.


Important: Guest Protection Selection

When both Security Deposit and Damage Waiver are enabled and the booking is eligible, the guest can choose their preferred protection option during the guest journey:

Refundable Security Deposit or Non-Refundable Damage Waiver.

The Damage Waiver is presented as a payable item during the Payment step. If the Damage Waiver is disabled or the booking is ineligible, the Security Deposit is used instead.

For more information about Security Deposits and Damage Waivers, visit the Security Deposit & Damage Waiver FAQs article.

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