Understanding Payment Holds on Houfy
A payment hold, also called an authorization, temporarily reserves an amount on a guest’s card without actually collecting the money. While the hold is active, the reserved amount may not be available for the guest to use, but th
Last updated September 2, 2026
1.Booking Request Hold :
If your listing requires you to approve a booking before it is confirmed, Houfy may place a hold on the guest’s payment when they submit the booking request.
The guest is not charged immediately.
What happens next?
If you accept the booking: The payment hold is captured and becomes an actual charge.
If you decline the booking: The hold is released and the guest is not charged.
If no action is taken: The authorization eventually expires, the booking request is cancelled, and the hold is released automatically.
While the payment hold is active, the guest cannot submit the same payment again. If they return to the payment page, they may see a “Payment Hold Exists” message instead of another payment form. This helps prevent double charges while the booking request is pending.
2.Security Deposit Hold :
Houfy can also place a temporary authorization hold on a guest’s card for a security deposit.
Requirements:
Your listing must have a security deposit amount greater than $0.
Collect through Houfy must be enabled.
The feature works with supported payment processors including Stripe, Square, and PayPal.
When is the security deposit collected?
You can configure this under Edit listing → Pricing → Additional Pricing Options → When to collect
At booking, the amount is charged immediately at the time of booking and is not placed as a hold.
• If On check-in is selected, the amount is collected on the check-in date.
• If 1 day before check-in is selected, it is collected one day before check-in.
• If 3 days before check-in is selected, it is collected three days before check-in.
• If 7 days before check-in is selected, it is collected seven days before check-in.
Hold or charge — how does Houfy decide?
Choosing a date before check-in does not always mean the security deposit will be placed as a hold. Houfy checks how long the authorization would need to remain active:
Days before check-in + number of nights + days after checkout before release
Total of 7 days or less: Houfy can use a temporary authorization hold.
Total of more than 7 days: The security deposit is charged instead and can be automatically refunded after checkout if there is no damage claim.
Example:
Suppose you have:
Security deposit collection: 3 days before check-in
Stay length: 5 nights
Release period: 5 days after checkout
3 + 5 + 5 = 13 days
Because this is longer than the authorization window, the security deposit would be charged rather than held.
The collection setting determines when Houfy attempts to collect the deposit. The total duration determines whether it can be processed as a hold or needs to be processed as a charge.
What happens when a security deposit hold is placed?
Houfy attempts to place the authorization on the guest’s saved payment method on the scheduled date.
The host and guest are notified when the hold is successfully placed.
If the authorization fails, such as because the card is declined, both parties are notified and the guest can update their payment method.
The hold remains active during the stay.
The host receives a reminder before the scheduled automatic release.
If no action is taken, the hold is automatically released based on the configured release period.
After checkout: release or capture :
No damage: If there is no damage, you normally do not need to do anything. The authorization will be released according to your security deposit settings, and the guest will not be charged.
Damage found: If you need to collect money for damage, you must capture the authorization before it is released.
From the reservation’s Security Deposit section, you can:
Choose Capture
Enter the amount you want to collect
Capture the full deposit or only part of it
Provide a reason for the charge
The captured amount becomes an actual charge. Any remaining amount that is not captured is released. The guest is notified when the deposit is captured.
3. Manual Payment Request Hold:
When sending a guest an additional payment request from a reservation, you may have the option to either:
Charge now — collect the payment immediately
Place a hold — authorize the amount without collecting it immediately
A payment request hold can be useful when you want to reserve funds for a possible charge without collecting the money right away.
You can capture the authorization later if the payment is needed.
Holds only apply to extra charges. The "Place a hold" option is available for extra/side charges (like a pet fee or damage charge) that sit outside the reservation total. It is not available for a payment request applied toward the reservation balance — since a hold collects nothing, it can never reduce what the guest still owes, so balance payments can only be charged.
Authorization periods:
Authorization periods depend on the payment processor. According to the current implementation:
Stripe: around one week
Square: around 6 days
PayPal: up to approximately one month
If the hold is not captured within the processor’s authorization period, it can expire and the reserved funds become available to the guest again.
Payment Hold Statuses:
Status Meaning
Pending The authorization is scheduled but has not been placed yet
Processing The authorization is currently being processed.
Held / Uncaptured The authorization is active; no money has been collected
Captured The authorization was converted into an actual charge
Released The hold was released without charging the guest
Cancelled / Voided The authorization was cancelled
Failed The attempt to place the authorization was unsuccessful
Frequently Asked Questions:
Does a payment hold mean the guest has been charged?
No. A hold reserves the amount on the guest’s card, but the money has not been transferred to the host. The amount becomes an actual charge only if the authorization is captured.
Does a hold affect the guest’s available balance or credit?
Yes. While the authorization is active, the reserved amount may be unavailable to the guest, even though it has not been charged.
What does “Payment Hold Exists” mean?
It means a payment has already been authorized for the reservation. This commonly occurs while a booking request is waiting for the host to accept or decline it. The guest does not need to submit another payment.
What happens if the guest’s card is declined?
If Houfy cannot place the authorization, the host and guest are notified. The guest can update their payment method from the reservation page. A host may also send another payment request when appropriate.
Can I capture only part of a security deposit?
Yes. You can capture an amount up to the full authorized security deposit and release the remaining amount.
Why did a payment hold disappear?
Authorization holds have a limited lifetime. If the authorization is not captured before the allowed period ends, it may expire automatically and the reserved funds become available to the guest again.
What if I need more time to inspect the property?
For security deposits, make sure any required amount is captured before the authorization is scheduled to release. If you regularly need more time after checkout, consider adjusting your security deposit release period for future reservations.
Important Notes:
A hold is not the same as a charge.
Security deposit collection operates separately from the automatic payment schedule for the reservation balance.
If Collect through Houfy is disabled for your security deposit, Houfy will not automatically manage the security deposit hold or charge. You will be responsible for collecting and managing it separately.
Security deposits set to collect at booking are charged rather than placed as authorization holds.