Digital Security Deposits: Replace Cash with Smart Protection

Collecting a €300 cash deposit at check-in is awkward. Returning it is worse - especially when the guest left at 6am and you discover a stained sofa at noon. Cash deposits create friction, disputes, and operational headaches. There's a better way.

Xentra's Security Deposit module replaces cash with digital pre-authorized holds on the guest's credit card - collected automatically, released automatically, with a structured damage claim workflow when things go wrong.

How Digital Deposits Work

Instead of collecting cash, Xentra places a pre-authorized hold on the guest's credit card during check-in. The card is held, not charged. If no damage is reported after check-out, the hold is released automatically after a configurable period (e.g., 48 hours post-checkout for damage inspection).

Real-Life Example: The Stained Sofa

Your cleaner arrives at Apartment 7 after checkout and finds red wine stains on the sofa. In the old world, the guest is gone, cash deposit already returned, and you're out of luck.

With Xentra: the deposit hold is still active. Your cleaner photographs the damage in the task app. You create a damage claim in Xentra with photos, description, and the estimated cleaning/replacement cost (€150). The deposit is retained automatically, the guest is notified digitally, and the transaction appears in your accounting.

Configuration and Flexibility

• Configurable per unit - set different deposit amounts for luxury apartments vs. standard studios
• Automatic collection during the online check-in process - no manual intervention
• Configurable hold period - 24h, 48h, or 72h after checkout for damage inspection
• Automatic release if no claim is filed within the hold period

The Damage Claim Workflow

When damage is discovered:

1. Report the damage with photos, description, and cost estimate
2. The system retains the deposit hold automatically
3. Track claim status: reported → reviewed → resolved
4. The guest is notified automatically with documentation
5. The transaction appears in your accounting reports

Owner Reporting

For multi-owner portfolios, each owner statement shows deposit collection status per booking and any claims filed. Owners see exactly how their property is protected - building trust and transparency.

Benefits

• Eliminate awkward cash collection at check-in
• Automated claim processing saves hours of back-and-forth
• Complete audit trail for every deposit and claim - essential for legal compliance
• Accounting integration - deposits and claims appear automatically in P&L reports
• Guests appreciate the frictionless experience - pre-authorized holds, not charges

The Damage Waiver Alternative

Not every guest wants €500 blocked on their credit card. That's why Xentra also offers a damage waiver - a small, non-refundable fee the guest pays once at check-in. In return, the host covers accidental damages up to a configurable limit.

You can configure the waiver amount per unit (flat fee per stay or per night) and set the coverage limit independently. Use "Waiver or Deposit" mode to let the guest choose their preferred protection during online check-in.

Damage waivers generate guaranteed, non-refundable income for hosts - no refund processing needed. For guests, it means no money blocked on their card.

"Pre-authorized deposits mean no cash required - your card is held, not charged. Automatic release after check-out - no chasing the host for your money back."

Ready to modernize your deposit process? Start your free Xentra trial and see how digital deposits and damage waivers transform your guest experience.