Hi there, @BTripleL.
I'm here to help provide some insights on how to handle refundable security deposit in QuickBooks Online (QBO).
Currently, QBO and Go Payment don't have an option to hold an amount for a refundable security deposit. Instead, you can create a sales receipt to charge your customer's credit card for the deposit amount. Once you receive a payment from the customer, you can fully refund a transaction.
Here's how to refund a transaction:
For additional reference, you can check this article on how to refund transactions in QuickBooks Payments.
Please now that you're always welcome to post if you have other concerns about QuickBooks or Go Payment services. I'll be around to help. Have a good one.
The Merchant Service Hotline told me yesterday that it is possible through the online Merchant Account website but it would be limited to a 7day hold. They also told me that there is no fee due when I only hold the amount and not actually charge it.
I asked for a description how to do this on the merchant account but they could send me anything. I was hoping to get a detailed description through this post.
With the Refund process you described I would loose a lot of money because I would be charged 2,45% when I charge the amount of the customers CC and another 2,45% when I refund it. Additionally Customers aren’t too happy if you actually charge the 1000$ and not just hold it on their CC.
You'll need to process an authorization first to process the hold in your customer's credit card.
You will need the following information to receive a voice authorization:
Then, here's how to get the authorization code in your Merchant Services Center.
Still in your Merchant Services center, process the authorization.
Let me know if you need more help. Have a great day!
Thank you for the detailed describtion. However I have a few additional questions.
1. As mentioned from the hotline there is no fee due, if I don't actually charge the amount but only let the authorization expire?
2. Is there a way to extend the hold for more than 7 days? I will have customers that will have a boat for more than 7 days, sometimes 2-3 weeks. If they return the boat damaged after the authorization expires I couldn't charge the Security Deposit anymore.
3.Since a lot of my customers are from Europe (Tourists) they won't have a billing zip code on their CC. I own a European CC myself and know this for a fact.
Will it still work without entering the Zip Code?
The pending transaction (authorization hold) may appear longer in your account depending on the bank's policy. Authorizations over 7 days are considered expired. You can re-authorize to ensure proper funding.
For processing an international card, you'll want to let your customer call in the bank for options. Feel free to read this handy article for details: Process a payment in Merchant Service Center.
I'd still suggest contacting our Payment Support for assistance about extending the hold. Please use this link to speak with one of our phone agents: https://community.intuit.com/browse/payments-contact-us.
Please know that we're always here if you have other concerns. Don't hesitate to reach out.
Thank you for the quick reply.
I read in another QB Article that there are fees for a voice authorization but it is not mentioned how high those fees would be. Could you also provide an answer on this topic?
It would also be very inconvenient for the customers to do an international call to their bank for this purpose. Is there no work around without the zip code? Would it be possible to enter the CC information by swiping their CC with you Card Reader?
Thanks for the additional information that you've given on this thread. It would be best to contact our Merchant Services Team so they can give you further instructions about the fees. Also, they can give other options aside from the zip code.
We are always here to help you if need more help.