Information on the bond

If you are renting a scooter, you may be asked to pay a refundable deposit to cover any damages or additional expenses that arise during the rental period. However, the way the deposit is processed can be confusing, especially when it comes to pre-authorisations and charges. In this article, we'll explain the difference between a pre-authorisation and a motorbike rental deposit fee, so you can better understand the process.

What is prior authorisation?

A pre-authorisation is a temporary hold placed by a merchant on a customer's credit card, and the funds are reserved for future payment transactions. During the hold period, the funds are not available to the customer: they cannot be withdrawn from an ATM or spent elsewhere. Although the funds cannot be accessed in your account, no money has been debited from the pre-authorisation; it is reserved.

Customers should understand that a pre-authorisation or hold is not a charge, but a temporary hold on funds. This means that the funds are not charged to the customer's credit card, but are held for a certain period of time. It usually takes a few days before the rental period is over and all charges have been settled.

Return of the deposit

Once the rental period is over and all charges have been settled, the pre-authorisation or hold will be released and the funds will be available to the customer again. This means that the deposit will not be returned as a refund, but the pre-authorisation or hold will disappear from the customer's credit card statement.

It is essential to note that the time it takes for the pre-authorisation or hold to disappear from the customer's credit card statement may vary depending on the credit card issuer and may take up to several days. However, the funds will eventually be available to the customer once the pre-authorisation or hold is released. Normally, at Paddock Motorbike, we cancel the pre-authorisation immediately when the customer returns the bike; in some cases, it may take up to the next working day if the return is over the weekend. However, your bank is responsible for unblocking the funds, so if you feel it is taking too long, we recommend that you contact your bank or credit card provider. They will try to help you because from our side it is cancelled and there is not much more we can do. Normally, your bank should be able to help you within a day to release your funds.

Charges vs. pre-authorisations on return

The deposit will not be returned as a refund. However, the pre-authorisation will disappear from your credit card statement once the rental period has ended and all charges have been settled. Unlike a chargeback, which will appear as a transaction on your credit card statement, a pre-authorisation is only a temporary hold on your credit limit. It will not appear as a separate transaction. Once the pre-authorisation is released, it will disappear from your credit card statement, so you will not see it as a separate charge or credit. This means that the funds will be available again on your credit card once the pre-authorisation is released, and you will be able to use them for other transactions or purchases.

Please note that pre-authorisation is not possible on Maestro cards, as they do not allow it.