I released a deposit but my customer says they don't see it back in their account. What should I do?
When a security deposit is released, the way it appears on the customer's bank statement can vary depending on their card issuer and bank. It's important to note that the deposits are not actually "charged" but are "pre-authorized" only. This means the funds are temporarily reserved, and not withdrawn, from the customer's account.
Understanding Bank Statements:
Some credit institutions show pre-authorizations as a deduction from the account (e.g., -100 GBP) and then display another line with the corresponding addition (+100 GBP) when the authorization is canceled, which effectively releases the deposit.
Other banks might adjust the initial entry (e.g., from -100 GBP to 0.00 GBP) to reflect that the deposit has been released.
Steps to Resolve:
Verify with Customer: Encourage your customer to thoroughly check their bank statement again. Sometimes, the refund is there but displayed in a manner they did not expect.
Waiting Period: Keep in mind that it might take up to 5 business days for the deposit to appear back in the customer's account after it has been released. If this time has already passed,
Further Assistance: If the customer confirms that the deposit still hasn't appeared in their account, please contact us. We will gladly escalate this to our payment processor for further investigation to ensure the funds are returned promptly.
Why Can't I Charge the Deposit?
If you are encountering difficulties in charging a security deposit, the first step is to check whether the deposit may have expired. Both TWICE Payments and Stripe have specific time limitations for how long a deposit can be held:
Stripe: Security deposits can be held for up to 7 days on Mastercard, and 5 days on VISA cards.
TWICE Payments: Deposits can be held for up to 28 days.
After these periods, if the deposit has not been charged, it is automatically released back to the customer’s account and can't be charged anymore.
Please contact our support team for further assistance, if the deposit has not expired. We will investigate the matter in detail to resolve any issues with the deposit charge.
What Are the Monetary Limits of the Deposit?
There is no upper limit on the deposit amount you can collect from the customer, meaning that it may even exceed 100% of the total rental cost. However, the minimum deposit amount is always $1 (or the equivalent in another currency), as transactions below this threshold cannot be processed by our payments provider.