same day refunds for damage deposits

[lakesidemarina]

If a refund is issued the same day the transaction was charged, will I be charged processing fees?  I am trying to find a way to avoid processing fees on refunds. Square does not offer  an option to out a hold on a credit card.  We are in the boat rental business and require a damage deposit.  99% of the time, these are refunded.  Any advice?  Square has not been helpful with this at all.  I would hate to change POS systems over this, but I have not found a solution.

Thanks!!

[Lovewell]

@lakesidemarina What if you saved the customer and put their card info in. If they damage the boat you charge the fee if they don't you just charge them the amount you need to for renting.

[lakesidemarina]

Thank you for the suggestion.  I wish it were this simple.  Unfortunately, if people do not have to front a damage deposit, it leaves us in a very vulnerable situation in the event that they do damage something.  Call it psychological, or simply holding them accountable, people are far less likely to damage things if they know they are risking not getting money back.  If we did things the opposite way, they potentially do not have the amount on their card to cover the damages.  Hotels and rental car places operate the same way.  The difference is that they use POS systems that allow holds to be placed on a card.  That is what we really need.  That would let us know that the card is good and if the boat is returned with no damage, the hold would fall off and the card would not be charged.  

Imagine renting a hotel room for the night and them just taking someone's word for it that they will not do any damage and will be responsible for the damages IF they cause any.  It is a lot easier to keep the money that you have a hold placed on than it is to risk a person totaling a 30k boat then canceling the card before they make the call to let us know.  

We have to have that protection.  No, it isn't a guaranteed coverage for the damages that we have seen in the past, but it covers 99.9% of the issues we encounter.

Again, thank you for taking time to provide feedback.  I hope this has helped you understand a bit more about where I am coming from.

Have a wonderful day!

[frances_a]

Hello @lakesidemarina 

Thank you for providing those additional details. 

I can see how having the ability to charge a security deposit would benefit your business. 

I would recommend checking out our Ideate boards within the Community, where you can post your feature request for other sellers to vote on, or add your vote to existing requests. Our Product teams review these boards and consider requests when planning future updates. 

Although a change where refunds do not incur processing fees is unlikely, I can see some of our sellers being interested in a security deposit feature. 

Thank you ✨