Manage Security Deposits on the Reservation Folio (Manual Process)

A security deposit (security damage deposit) is an amount collected from a guest at check-in and later refunded or released after check-out, if no damages are found. 

This guide explains the manual process to handle security deposits in Cloudbeds PMS.

For the automated setup via Booking Engine, see Automatically Add Security Deposits for Direct Reservations.

Step 1 – Create the Security Deposit Fee or Item

You can configure the deposit as a fee that will be added manually to the folio; if linked to the reservation source, appears automatically when applied.

To create the deposit,

1. Access the Payments settings page
2. Go to Taxes and Fees
3. Add a new fee as Security Deposit (or Security Damage Deposit)
4. Fix it as exclusive per reservation
5. Enter the amount (e.g., 200 EUR)
   • Usually, no VAT is applied.
6. Save

Step 2 – Add the Deposit at Check-In

When the guest arrives at check-in (or during advanced check-in):

1. Open the guest’s reservation folio
2. Click to add a fee
3. Add the Security Deposit 
   • The default amount will appear, but you can adjust it if needed.

4. Process the payment:
   1. Charge → collect the funds via terminal, credit card, or payment link.
   2. (Optional) Some hotels create a separate folio to manage deposits.
5.  Add the deposit payment

The deposit amount and its payment will be displayed on folio.

Step 3 – Refund or Void the Deposit at Check-Out

At check-out, if there are no damages:

1. Go to the guest folio
2. Refund (if charged) or Void the deposit transaction
   • If you use Cloudbeds Payments: select the transaction -> Refund.

Step 4 – Remove the Deposit fee/item from the Folio (for Refund scenarios) 

After refunding a deposit fee, the balance due will display the amount refunded. If you don’t void the fee/item, the folio may show an outstanding balance.

1. Void the Security Deposit fee/item from the folio.
2. Confirm the folio balance returns to 0.

Security Deposit Example Flow

1. Guest checks in → Security Deposit of €200 is added to folio.
2. Payment collected. 
3. At check-out → deposit refunded/voided.
4. Security Deposit item/fee removed → Folio balance = €0.