Website help - holding a credit card deposit
Website help - holding a credit card deposit
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Discussion

heisthegaffer

Original Poster:

4,325 posts

229 months

Wednesday 19th June 2019
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Hi all

A friend has set up a website where people lend things to each other but to cover damage or non returns of items etc they need a way of holding a deposit via a debit/credit card etc just like hotels do.

Can this be done and is there a name for this service?


Butter Face

35,125 posts

191 months

Wednesday 19th June 2019
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Is that like an Escrow type service?

akirk

5,778 posts

145 months

Wednesday 19th June 2019
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you dont hold a deposit - you pre-authorise the card...
you can do this with some merchant accounts...

heisthegaffer

Original Poster:

4,325 posts

229 months

Thursday 20th June 2019
quotequote all
akirk said:
you dont hold a deposit - you pre-authorise the card...
you can do this with some merchant accounts...
Thanks, yes, this is what my friend needs.

miniman

30,203 posts

293 months

Thursday 20th June 2019
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Keep in mind that card pre-auths expire after a period of time, which varies by card issuer. You then need to re-auth the card to keep the funds open. You can alternately do a zero-auth to verify that the card is legitimate / active but obviously that doesn’t reserve any funds.

Obviously you really don’t want to get into storing card details yourself, so you would typically store a token from the payment service provider instead.

It’s not a simple area by any means.

alorotom

12,792 posts

218 months

Thursday 20th June 2019
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miniman said:
Keep in mind that card pre-auths expire after a period of time, which varies by card issuer. You then need to re-auth the card to keep the funds open. You can alternately do a zero-auth to verify that the card is legitimate / active but obviously that doesn’t reserve any funds.

Obviously you really don’t want to get into storing card details yourself, so you would typically store a token from the payment service provider instead.

It’s not a simple area by any means.
Depending on the authorisation type though you can have it up to 11mths though I believe.

One of the online foam mattress companies does this for essentially 12mths interest free but it’s held on your credit card and the auth reduces by 1/12 every month

miniman

30,203 posts

293 months

Thursday 20th June 2019
quotequote all
alorotom said:
Depending on the authorisation type though you can have it up to 11mths though I believe.

One of the online foam mattress companies does this for essentially 12mths interest free but it’s held on your credit card and the auth reduces by 1/12 every month
Very risky way to do either "credit" or hold a deposit - only requires the card to be reported stolen and you've then got to chase down the cardholder.