Security deposit for holiday stay

J_B

We run a Ltd Co that does holiday rentals on the Welsh coast (two apartments)

We use an agent to get most of the bookings and up to now, they have dealt with the security deposits. Customer phones, gives card details for pre-authorisation (?) and agent gives them key details.

Last year agent took £100, then paid it back after the stay as long as everything was ok - they charged us a tenner

This year they have just taken pre-auth and not charged

Next year, if we want to continue with this system, they are asking for £24 for this service.

It's probably something we ought to be doing ourselves, but we currently don't have facility for taking cards.

I'm sure there's someone on here who can advise as to the best way to go about this - our bank is Starling

Thanks

Savvy_Sue

So that's £24 they want to take for charging a £100 deposit? That is a big increase, is it because they 'forgot' to make a charge this year and are trying to recoup?

It is worth thinking about what's involved in taking card payments, and holding deposits: you have to do it right, so it's not unreasonable to expect to pay something for the service. 

Can't help with best way of doing it! 

martindow

How do your customers pay you - it seems as if this company don't go on to collect the balance, or do they?

If customers have to settle in cash I think that might be off-putting for some people who could worry about wanndering around with hundreds in banknotes.

Perhaps this is the time to look into getting a credit card account yourself as many people would expect to be able to pay this way.

J_B

martindow said:

How do your customers pay you - it seems as if this company don't go on to collect the balance, or do they?

The customer pays the agent who then sends most of the monies on to us (deposit and balance)

When the customer asks for the key code, they phone the agent for this and give their card details for pre-authorisation of the security deposit.

martindow said:

Perhaps this is the time to look into getting a credit card account yourself as many people would expect to be able to pay this way.

Indeed - any suggestions

Footnote - the agents have now clarified a little. They will continue to take pre-auth card details for no cost and will only charge us *if* they need to action a claim.

Quite what happens with the family who left a rucksack and want me to post it back to them (I agreed to charge them a tenner), I'm unsure!