Can I charge a security deposit for bookings?
Yes. A security deposit is a separate refundable amount charged in addition to the booking total, usually to cover potential damages or extra cleaning. In WP Booking System, you can charge a security deposit by enabling the security deposit option in your payment settings and making sure it is included in the booking/payment calculation shown to the customer. After setup, test a booking end-to-end to confirm the customer sees the security deposit clearly, your admin area records it correctly, and your emails explain when and how it is refunded.
On this page
- What a security deposit means
- What you’ll need
- Step 1: Decide your security deposit policy
- Step 2: Enable the security deposit option
- Step 3: Decide how and when it is collected
- Step 4: Make it clear on the booking form and emails
- Step 5: Test the full booking flow
- How refunds typically work (process and expectations)
- Common issues (and quick fixes)
- Best practices
- Mini FAQ
What a security deposit means
- A security deposit is a separate amount paid to protect against damage or rule violations.
- It is usually refundable after the stay/service is completed and the property is checked.
- It is not the same as a booking deposit (part payment), which is part of the booking price.
What you’ll need
- WP Booking System installed and activated
- Payments enabled and configured (online or offline)
- Pricing enabled so the booking total can be calculated
- A booking form that includes payment options
- Security deposit feature available in your setup
Step 1: Decide your security deposit policy
Write your policy in one sentence first, because this is what you will communicate on the booking page and in emails.
- Example: “Security deposit is 200 EUR, refundable within 48 hours after check-out.”
- Example: “Security deposit is 15% of the booking total, refunded after inspection.”
- Example: “Security deposit is collected at check-in (not online) and returned at check-out if everything is OK.”
Tip: Decide whether the deposit is fixed or varies by resource, and whether it differs for longer stays or larger groups.
Step 2: Enable the security deposit option
Enable the security deposit setting in your payment configuration and set the amount according to your policy.
- Enable security deposit for your booking system.
- Set the deposit amount (fixed or rule-based, depending on your setup).
- Decide whether it applies to all calendars or only specific resources.
Tip: If you have multiple calendars, confirm the deposit is applied consistently across the resources that require it.
Step 3: Decide how and when it is collected
Security deposits can be collected online or offline. Choose the method that matches how you handle refunds and how comfortable you are with payment disputes.
- Online collection: customer pays the security deposit during checkout; you refund it later based on your policy.
- Offline collection: customer pays on arrival (cash/card) and you return it at check-out.
- Authorization/hold: some payment setups can place a temporary hold instead of charging (this depends on the payment gateway and your configuration).
Tip: If you collect it online, clearly explain the refund timeline and conditions to reduce chargeback risk.
Step 4: Make it clear on the booking form and emails
Security deposits cause confusion if customers think it is an extra fee or part of the rental price. Show it as a separate line item and repeat the refund terms in the confirmation message.
- Show “Booking total” and “Security deposit” as separate amounts.
- Explain whether the deposit is refundable and when it will be refunded.
- Explain what the deposit covers (damage, missing items, smoking, extra cleaning) in plain language.
Tip: Add one short sentence directly above the payment section so customers see it before they pay.
Step 5: Test the full booking flow
Always test a complete booking from the front-end so you confirm the security deposit is applied correctly and displayed clearly.
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- Open the booking page in an incognito/private window.
- Select dates and complete a test booking.
- Confirm the checkout shows the security deposit as a separate amount.
- Check your admin booking details and confirm the deposit is recorded.
- Check customer email and confirm it explains the refund policy clearly.
Tip: Test a short stay and a longer stay if your deposit rules vary by length or resource.
How refunds typically work (process and expectations)
The refund process depends on your payment method and business workflow, but the customer expectation should always be clear: when you inspect, when you decide, and when you refund.
- Set an inspection window (for example: within 24–48 hours after check-out).
- Set a refund timeline (for example: refunded within 3–7 business days, depending on the payment provider).
- If deductions are possible, explain how you communicate them (photos, invoice, email explanation).
Tip: Always document your policy on the booking page and include a short version in the confirmation email.
Common issues (and quick fixes)
Customers think the security deposit is a fee and not refundable
- Rename it clearly (for example: “Refundable security deposit”).
- Add one line that says “Refunded after check-out if no damages.”
- Repeat the same sentence in the confirmation email.
The security deposit does not appear on the booking form
- Confirm payments are enabled and configured and the booking has a calculable total.
- Confirm the security deposit option is enabled and applies to the calendar you are embedding.
- Check that the form includes the payment field and that payment options are visible.
The security deposit appears, but the total looks wrong
- Decide whether the security deposit should be included in the “amount due now” or shown separately as a refundable amount.
- Check whether taxes, fees, or extras are also added at checkout and clarify the breakdown.
Refund handling is unclear for my payment method
- Check what your payment gateway supports (refund, partial refund, hold/authorization) and align your policy accordingly.
- If you cannot do easy refunds online, consider collecting the security deposit offline at check-in.
Best practices
- Label it as “Refundable security deposit” and show it as a separate line item.
- State the exact refund timeline and conditions in simple language.
- Keep your policy consistent across your booking page, form, and emails.
- If you offer online collection, have a clear process for inspection and refund to reduce disputes.
Mini FAQ
Is a security deposit the same as a booking deposit (part payment)?
No. A booking deposit is part of the booking price and reduces the remaining balance. A security deposit is a separate refundable amount used to cover damages or rule violations.
Can I charge different security deposits for different rooms?
Yes, if your setup allows deposit settings per calendar/resource. This is common when higher-value rooms require a higher security deposit.
Can I collect the security deposit on arrival instead of online?
Yes. Many businesses collect the security deposit at check-in (cash or card) and return it at check-out after inspection, especially if online refunds are difficult or slow.