How to Hold a Damage Deposit on a Direct Booking Without Charging the Guest
Updated October 30th, 20266 min read
On a direct booking, the fairest way to take a damage deposit is usually a card hold: the amount is reserved on the guest's card but not charged, and it's released automatically unless you make a claim. The guest never has to wait for a refund, and you don't have to look after their money.
The catch is that banks only keep a hold open for a limited time. So when you place it matters more than most hosts expect.
Rules can change after publication. This guide reflects Airbnb, Booking.com and Stripe documentation as of 30 October 2026, and it isn't legal advice. Check the current terms before you rely on them.
What the platforms allow
The reason hosts ask about this is that platforms have taken deposits out of their hands.
| Platform | Can the host take a deposit? | How damage gets paid |
|---|---|---|
| Airbnb | Most hosts can't require a deposit or card hold. Some software-connected hosts and hotels can, and must disclose it | A reimbursement request in the Resolution Center, and AirCover for Hosts, which Airbnb says isn't insurance and has exclusions |
| Booking.com | Properties can't charge guests directly under its damage policy; only Booking.com can, with the guest's consent | You can request a fee up to 14 days after the stay, and the guest can dispute it. Wear and tear, cleaning, and house-rule or smoking fines are excluded |
| Your own site | Yes, on terms you set and show upfront | Between you and the guest, within consumer law |
On top of that, Airbnb's rules ban fines and other penalties for reservations booked on or after 20 November 2026. See our guide to Airbnb's new house rules for more.
Your options on a direct booking
| Option | Good | Bad |
|---|---|---|
| Card hold | Nothing is charged, and release is automatic | Time-limited, and needs a card payment provider |
| Bank transfer, refunded later | No card fees, works anywhere | You're holding the guest's money and must remember to refund it. Some guests won't send it to a stranger |
| Charge the card, refund later | Simple, no time limit | The guest is out of pocket, and you may lose card fees on the refund |
| Cash on arrival | Instant | Awkward, no record, and impractical with self check-in |
| No deposit, a higher cleaning fee | No admin | Doesn't deter anything, and honest guests pay for the others |
For most hosts who take cards, the hold is the best fit. Some property management tools offer one too: Lodgify, for example, lists damage pre-authorisation from its Professional plan.
How long a card hold lasts
Stripe publishes how long an authorisation stays open when the card isn't present:
| Card | Started by you, without the guest | Started by the guest |
|---|---|---|
| Visa | 5 days (in practice 4 days 18 hours) | 7 days |
| Mastercard | 7 days | 7 days |
| American Express | 7 days | 7 days |
| Discover | 7 days | 7 days |
Two things to note. Stripe says the classification depends on signals of the cardholder taking part, so don't assume a payment falls in one column. It also says to rely on the deadline it returns for each payment rather than a table like this one.
There is also extended authorisation of up to about 30 days for lodging, but it's offered on interchange-plus pricing or by contacting Stripe, so many small hosts won't have it.
What this means for you: a hold placed when the guest books, weeks ahead, will expire before they arrive. On a week-long stay, a hold placed at check-in may not last until you've inspected the place. So the hold has to be timed around the end of the stay, not the booking.
Making a hold fair and enforceable
A deposit protects you only if the guest knew about it and the claim is reasonable.
- Show it before they book. The amount, when it's held, when it's released and what it covers.
- Say what it isn't for. Normal wear and tear isn't damage.
- Keep it proportionate. In the EU, the Unfair Contract Terms Directive can treat disproportionate penalties for consumers as unfair. A charge should reflect what the problem actually costs you.
- Put it in your agreement. Our guide to short-term rental agreements covers the wording.
- Keep evidence. Dated photos before and after the stay, with an itemised list of costs.
- Tell the guest what you're claiming and why. Most disputes come from surprise, not from the amount.
How it works in OpenSty
You connect your own Stripe account and turn on the deposit hold for a property. You're the merchant, OpenSty takes no fee and never holds the money, and Stripe's own fees apply to what you actually charge.
- Before booking, the guest sees the deposit, and what it's for, on your page.
- Around the stay, the hold is placed automatically: the day before check-in, or later on a long stay so that it lasts until after check-out.
- After check-out, you have the window you chose, 1 to 3 days. If you do nothing, the hold is released.
- If there's damage, you claim part or all of the amount with photos and a description. The rest is released.
- If the hold isn't there, because the card was declined or the window passed, you can only send the guest an itemised payment request. We don't charge a card without the guest once the hold is gone.
Guests who paid by bank transfer add a card through a link, so the hold works for them too.
The limits: the hold can't exceed what the guest's card allows, some debit cards will decline it, and a hold doesn't guarantee you'll recover more than its amount. If the damage is bigger, you're into a normal dispute or your insurance.
Common questions
Is a card hold the same as a charge?
No. The amount is reserved and reduces the guest's available credit, but it isn't taken unless you capture it. Some banks show it as pending until it's released.
How much should a damage deposit be?
There's no standard figure. Pick an amount that would matter to a careless guest and wouldn't scare off an honest one, and keep it in proportion to the property and what damage would actually cost you.
How long can you hold a deposit on a card?
Stripe lists 5 to 7 days for standard card-not-present authorisations, depending on the card network and how the payment was started, and up to about 30 days with extended authorisation for lodging.
Can Airbnb hosts require a security deposit?
Airbnb says most hosts can't. There are exceptions for some software-connected hosts and hotels, who must disclose the deposit in the fee field and refund unused amounts within 7 days of checkout (14 for hotels).
What if a guest disputes the claim?
Share your photos and costs and try to settle it directly. If the guest disputes it with their bank, Stripe's dispute process applies, and your evidence and the terms they accepted are what count.
