Overview: What are we talking about?
A deposit is a portion of a reservation paid in prior to check in. This held deposit helps to ensure that an owner will show up for their reservation, and will be applied to the reservation's invoice upon check out as a payment.
This article includes:
- Collecting Deposits on the Business Side of the app
- Allowing Deposits to be Paid From the Customer Portal
- Deposit Emails
- Handling Deposits on Cancelled Reservations
Helpful Hints: Before you begin.
- Deposits are a great way to standardize and require prepayment on reservations. To learn more about setting up required deposits, check out this article.
How to: Using the Deposits feature.
Automatically Required Deposits:
If you have setup required deposits or a specific type of reservation for a specified date range, a prompt will appear to pay the deposit when the new reservation is created from the New Reservation Page.
Manually Attached Deposits:
Deposits can be additionally be manually attached to any reservation. To create a deposit on a reservation follow these steps:
- Create a reservation, and view the Estimate tab.
- Click on the Create Deposit button from the Estimate.
- You will then be prompted to select the percentage of the total that will be paid with this deposit:
- This will create the deposit requirement for the reservation. Upon saving the reservation, you'll be given a prompt to collect the deposit now, or handle it later.
- To collect the deposit at that time, click Collect Deposit Now, and enter the customers payment information.
If a deposit is required, the following automated communications can optionally be sent to the customer:
To view and edit deposit settings navigate to Left-hand Navigation: Admin » System-Wide Settings.
- Send New Deposit Email - When a required deposit is added to a reservation, an email can be automatically sent to the customer, informing them that they must pay a deposit. If this setting is enabled, the customer will receive this email when their reservation is created.
- Send Deposit Accepted Email - If deposits are required on reservations, and the previous deposit email is enabled, the deposit email will be sent to the customer when their reservation is created. If you would prefer that the New Deposit email be sent when a customers reservation request is accepted, enable this setting!
- Daily Deposit Email - If a deposit is unpaid, an optional daily email can be sent to remind the customer to pay the deposit. If this setting is enabled, the customer will receive an email reminder to pay their deposit every day that it goes unpaid. This is a great way to keep unpaid deposits at the top of your customers' inbox.
Handling Deposits on Cancelled Reservations
When a reservation is canceled, it is up to your business to decide how to handle the deposit. It can either be refunded or forfeited.
Refunding a Deposit:
Once a reservation is cancelled, it's deposit can be refunded. If you would like to fully refund the paid deposit, follow these steps:
- Navigate to Left-hand Navigation: Reservations » Deposits » Canceled Reservations Pending Resolution.
- Choose Refund Deposit from the Action Menu and confirm your action by clicking OK in the pop up.
When you click OK, a refund will be processed to the original payment method of the deposit. If the deposit was paid with a credit card (and you process cards in Gingr), the customer's credit card will automatically be refunded.
Important! There is no email sent to the customer for this action. You may view and print a receipt.
Forfeiting a Deposit:
Your deposit policy may require that reservations be cancelled within a certain amount of time to be eligible for a refund on the paid deposit. If a customer cancels outside of this window, you can Forfeit the deposit on their cancelled reservation to consume their payment as revenue. Forfeiting a deposit can also be used to partially refund a paid deposit on a cancelled reservation. To forfeit a deposit, follow these steps:
- Navigate to Left-hand Navigation: Reservations » Deposits » Cancelled Reservations Pending Resolution.
- Choose Forfeit Deposit and confirm your action by clicking OK.
When you click OK, this deposit will be marked as forfeited, and a new invoice with a "forfeit deposit" line item charge will appear on the owner's account with the respective payment. This consumes the collected deposit towards the charge as a payment, which can be viewed on the Revenue by Date report for that day.
Once the forfeit is complete, the charge can be left as-is, or it can be refunded!
FAQ: Check it out.
When is a Deposit Consumed?
When a reservation that has an attached deposit is checked out, the paid deposit will be converted to a payment and "consumed" towards the invoice charges for that reservation. This is all done automatically in the checkout process.
How do I handle an overpaid deposit?
Q: We took a 100% deposit on a reservation, but the customer checked out early and the amount paid was more than the final charges. How should we handle that?
A: Sometimes, the deposit amount paid will be greater than the subtotal of your shopping cart. When that happens, you will be presented with 2 options in the cart.
- Credit difference to owner account: Choosing this option will add a line item to purchase store credit for the overpaid amount. At this point, the store credit can be left on the account to use towards a future reservation, or the overpaid amount can be refunded.
- Refund entire deposit: Choosing this option will refund the entire deposit to the customer via the original payment method. The customer will then need to present a new method of payment to complete their invoice.