How to handle security deposits or have a recourse if anything occurs

[Tropical_Sunset]

My client is offfering rentals of a product and would like to use Paypal services. The issue we are concerned with is if the product isn't returned or is damaged we don't have a way to charge more than what they paid for the rental. Does Paypal offer a way to place a hold but not charge for a security deposit or anyone else have an idea that would work other than charging the price of the item and then refunding the remainder upon the rentals return?

Thanks.

[snowshoe]

PayPal does have a feature that may work however, you would have to do some testing for yourself to see if it's right for you.

The feature is called "Authorization and Capture" whereas, someone pays you and the money stays on hold until your accept it.  You can hold the money up to 29 days and you can:

– Capture either a partial amount or the full authorization amount.

– Authorize a higher amount, up to 115% of the originally authorized amount (not to

exceed an increase of $75 USD).

– Void a previous authorization.

You can find the details here:

https://www.paypalobjects.com/webstatic/en_US/developer/docs/pdf/pp_websitepaymentsstandard_integrat...

[Tropical_Sunset]

Hi Snowshoe,

Thanks a lot for your reply, I think it's exactly what I need.

Also, great avatar 😉

Cheers

[snowshoe]

[Tropical_Sunset]

Hi everyone,

I'm now at the point of integrating that functionality to my client's website. I've been looking at this link you sent my before Snowshoe. My only concern is that the surcharge is limited to 115%. In the case of my client, he needs to be able to get a lot more than 115%! If a customer damages a product, that the full price of the product that my client would need to get, or charge for another rental period if the product is not returned on time.

Here is an extract of the Terms & Conditions from a competitor's website:

Any damage to the equipment beyond reasonable wear and tear, up to and including TOTAL LOSS, will be my responsibility for which I agree to compensate Company X and I authorise Company X to charge my credit card equal to full recommended retail (RRP) replacement cost of such equipment to cover such responsibility. Company X agrees to rebate any portion of such charge not necessary to satisfy my obligations under this agreement at the time of return or promptly after the cost of repairing any such excess damage has been determined. Product Y that are damaged will incur a $50 charge that I agree for Company X to charge my credit card on return of hired equipment. I agree to all the terms and conditions outlined in the Insurance section of this website.

I agree any equipment not return shipped to Company X by the following Wednesday of booked weekend will be subject to another rental period unless approved by Company X. I am aware all orders come with free one way shipping- I agree the cost of return shipping is up to me(cost approx $20-$25) and failure to return equipment after 30 days will incur a charge and I agree to allow Company X to charge my credit card for the manufacturers RRP for equipment hired.

They use a system called Eway. But I'd like to stick on Paypal! But what should I use?

Also, whatever solution is the best, is it something that is easy to set up or does it need to be done by a developer?

Any help would be greately apprecitated 😄

Thanks heaps

[Talusier]

Hi,

I was wondering if you had found a solution to your security deposit problem. I am facing the same situation.

Thanks,

Talusier