Security Deposits

How Security Deposits Work

Some rentals require a security deposit. If a deposit is required, it will be displayed during checkout before the booking is completed.

When Are the Rental Charge and Deposit Processed?

Once the lender confirms the rental, FriendWithA will process both:

1. The rental charge
2. An authorization hold for the security deposit

If the rental starts within the next two days, both are processed immediately after the lender confirms the booking.

For rentals that start more than two days in the future, both the rental charge and deposit authorization are processed approximately two days before the rental start time.

Is the Deposit Actually Charged?

In most cases, no.

The security deposit is placed as an authorization hold, which temporarily reserves funds on the payment method. The deposit is not captured unless there is an approved claim or charge related to the rental.

When Is the Deposit Released?

The authorization hold is released when:

• The lender marks the item as returned without issue, or
• Two days have passed since the rental end time and no issues have been reported.

Once released, the time it takes for funds to become available again depends on your card issuer and financial institution.

Long-Term Rentals

Most card issuers only allow authorization holds to remain active for a limited period of time (typically around seven days).

For longer rentals, FriendWithA may periodically re-authorize the security deposit during the rental period to keep the authorization active.

If a re-authorization cannot be completed, FriendWithA may capture the existing deposit amount and hold those funds until the rental is completed. If no claims or additional charges are approved, the captured amount will be refunded after the rental ends.

When Can a Deposit Be Used?

A security deposit may be used for approved charges related to a rental, including:

• Damage to the rented item
• Theft or loss of the rented item
• Missing parts or accessories
• Cleaning fees
• Late fees
• Replacement costs
• Other charges permitted under FriendWithA's Terms of Service

What If I Purchased Damage Protection or Theft Protection?

If you purchased optional protection coverage, the security deposit would generally only be used for the applicable deductible amount, subject to the terms, limits, and exclusions of the selected protection plan.

For example, if an approved damage claim is covered by a protection plan with a deductible, only the deductible amount may be charged to the borrower, while the remaining covered amount would be handled through the protection plan.

Additional Information

• Security deposits are separate from the rental charge.
• A deposit authorization hold may reduce your available credit or available account balance while the rental is active.
• If a payment method cannot support the required authorization hold, the rental may not proceed until a valid payment method is provided.
• Deposit requirements and deposit amounts may vary by rental.