Best way to set up a Security Deposit for a rental business?

[BTR_Jose]

I currently run a tool rental business. Part of my business is to collect a security deposit so that once the goods are returned, I can simply release the funds back to the customer if the goods are in good standing order.

However, I don't see a way to go about this.

My current setup goes as follows:

1. Create an item with $0.00 Value.
2. Create a modifier with:
   1. Deposit: $30.00
   2. 4-Hour Rental: $16.00
   3. 1-Day Rental: $25.00
   4. 1-Week Rental: $95.00.
3. Apply the Modifier to the Item. 
4. Once setup, we add the item, with the deposit and rental period and charge the customer.

However, we charge tax on the service we provide. We would like to NOT charge tax on the deposit. We currently have to calculate the tax when we choose to release the fee.

Is there an easier way to set this up?

Thanks!

[TheRealChipA]

Hi @BTR_Jose.  You would need to set up a separate item for the deposit portion.  Then you can make that item be non-taxable.  Also, I want to point out that when you process the refund for each $30 deposit, the processing fees for that will not be refunded to you.  The customer will receive the entire $30, but you will be out the $0.88 for each refund (depending on your processing rate).

Regards,

[terrax]

Has any progress been made on this feature?

[Katie_SQ · Accepted solution]

Thanks for following up on this, @terrax!

You can use Square Invoices to request payment for a portion of your invoice upfront as a deposit, and set a separate due date for the remaining balance. Feel free to check out the link above and let me know if you have any questions. 🙂