A security deposit hold helps you protect your venue against damages without charging your client up front. Your client saves a card when they book. Shortly before the event, HoneyBook places a temporary hold on that card. You can charge some or all of the hold, for example, to cover damages. If you don't, HoneyBook releases the hold automatically, and your client isn't charged.
What you can do with security deposit holds
Add one security deposit to a project and send it to your client as a file
Collect your client's card without charging it
Extend a hold if your event date moves
Release a hold at any time
Charge all or part of a hold to cover damages
Track the status of the deposit from the project's Financials tab
How a hold differs from collecting a payment and refunding it
| Security deposit hold | Collecting a payment and refunding it |
Money leaves your client's account | Only if you charge for damages | Yes, at booking |
Refund needed after the event | No, the hold is released automatically | Yes, you refund it yourself |
Processing fees | Only on the amount you charge | On the full payment |
When the hold is in place, the amount is reserved on your client's card. This lowers their available credit, but it isn't a charge.
Who can use security deposits
Security deposits are available to venue accounts on Essentials and Premium plans. If your account is downgraded to Starter, any security deposits created will continue to work. New ones are unable to be added.
What each team member can do depends on their role:
Owners, Super Admins, and Admins can add, edit, and send a security deposit, and can extend, release, or charge the hold
Moderators and Basic Team Members can see the deposit's status, but can't add, edit, send, or charge it
Add a security deposit and send it to your client
You can add one security deposit per project.
Open the project and go to the Financials tab
On the Security deposit card, select Add security deposit
You can also create it from the project's create-file menu by selecting Security deposit
In the security deposit file that opens, enter the amount (up to $1,000, before tax)
To add tax, select Add tax and enter a percentage or a flat amount (up to 15% of the deposit)
The Total shows the full amount that will be held
Share the file with your client the same way you share any file (e.g., by email, text message, or a link)
đź“Ł Notes
You can edit the amount and tax until your client authorizes the hold. After that, they're locked because your client agreed to that exact amount. To change them, release the deposit, delete the deposit, and then add a new one.
You can't send a deposit of $0
The security deposit file has a fixed layout. You can't add pages or blocks, rename the file, or save it as a template.
To track the deposit, use the Security deposit card on the Financials tab. From the file in the Files tab, select View deposit status.
How your client authorizes the hold
How your client authorizes the hold
When your client opens the file, they see the deposit amount and an explanation that it's a temporary hold, not a charge. They enter a card and select Confirm hold.
Your client can use a different card from the one they use for their payments, or a card they already saved
Only credit or debit cards can be used for security deposits
Bank transfers (Automated Clearing House, or ACH), digital wallets (e.g., Apple Pay, Google Pay), and Affirm aren't available
HoneyBook doesn't place a hold or charge your client at this point. We save the card and schedule the hold. Your client is only charged if you charge the deposit. You're notified that the file was completed, and the deposit's status changes to Hold Scheduled.
When the hold is placed and released
Placed: HoneyBook places the hold 2 days before the event date
Released: HoneyBook releases the hold automatically, usually 2–5 days after the event.
The exact timing depends on your client's card, so the release date appears on the Security deposit card once the hold is placed.
You and your client each get an email when the hold is placed and when it's released.
If the project has no event date
HoneyBook doesn't place the hold until you add an event date. Until then, the Security deposit card shows Hold Scheduled and explains that the hold will be placed two days before the event.
If the event date changes or has passed
Before the hold is placed
You don't need to do anything. The hold follows the new date.
If the event date has passed, HoneyBook doesn't place a hold, and the Security deposit card shows "Event date passed."
After the hold is placed
The hold doesn't move
If the event moves a little later, extend the hold
If the event moves a lot, release the hold, delete the deposit file, and add a new security deposit for the new date.
If you archive the project
If the hold is scheduled but not yet placed, HoneyBook pauses it until you unarchive the project
If the hold is already placed, HoneyBook still releases it automatically, or you can release it yourself
Extend or release a hold
Open the project's Financials tab and select the more options (â‹Ż) menu on the Security deposit card.
Extend a hold
Select Extend hold.
You can extend an active hold by up to 7 days at a time
The total can't exceed 21 days from the day the hold was placed
đź“Ł Note
Extending releases the current hold and places a new one. Your client may briefly see two holds on their statement until their bank removes the old one. The new hold can be declined, like any card authorization. If that happens, the deposit is no longer protected and the security deposit card shows Couldn’t place hold.
Release a hold
Select Release security deposit.
You can release a hold at any time
The full amount goes back to your client
If the hold wasn't placed yet, releasing cancels the deposit request
Charge a security deposit for damages
Open the project's Financials tab and select the more options (â‹Ż) menu on the Security deposit card
Select Charge security deposit
Enter the Charge amount. You can charge all of the hold or only part of it, but never more than the hold.
Under Reason for charge, describe the damage
Confirm the charge
When you charge a security deposit:
HoneyBook releases any amount you don't charge right away
If the deposit has tax, HoneyBook adds tax to the charge in proportion to the amount you charge
HoneyBook creates a paid invoice for the charged amount
Your client gets one email with the reason for the charge and the invoice
You get a confirmation email
The charge counts as a payment, so it appears on your Payments page and in reports, and your usual processing fee applies
If your client disputes the charge, HoneyBook handles it like any other payment dispute.
Security deposit statuses
The Security deposit card shows the current status of the deposit.
Status | What it means |
Not added | The project doesn't have a security deposit yet |
Draft created | You created the deposit file but haven't sent it |
Sent | HoneyBook is waiting for your client to authorize the hold |
Hold Scheduled | Your client saved a card. HoneyBook will place the hold 2 days before the event. |
Active | The hold is in place. The card shows when it will be released automatically. |
Hold released | The hold was released, automatically or by you. Your client wasn't charged. |
Partially charged | You charged part of the hold, and HoneyBook released the rest |
Charged | You charged the full hold |
Couldn't place hold | Your client's card was declined |
Event date passed | The event date passed before HoneyBook could place a hold |
When HoneyBook can't place a hold, every client on the project gets an email with a link to update their card, and you get an email too.
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