WHAT IS A SECURITY DEPOSIT? WHEN AND HOW TO USE IT?
EXAMPLES OF USE CASES
For Tourist Hotels
To register a reservation, the hotelier traditionally asks for a deposit. In the hotel business, this is a deposit, not an advance or security deposit.
There is no legal percentage for deposits, only a customary 2 to 3-night deposit for stays longer than a week.
The customer may also request an additional security deposit at the beginning of the stay to prevent any damage. This is returned to the customer even if the stay is cancelled or interrupted.
In the event of cancellation, the deposit is forfeited (except in the case of a commercial gesture by the hotelier). However, an amicable agreement is always possible. NB: since the pandemic, more and more hoteliers are offering cancellation insurance.
When renting
If the landlord requires a security deposit, this must be stated in the rental agreement. The security deposit must be paid when the rental contract is signed.
NB: not to be confused with a guarantor, who is a person who guarantees (hence the confusion) to the landlord the payment of rent and utilities.
In the case of rented accommodation: the amount must not exceed 1 month's rent, excluding charges. It can be used to cover possible breaches of contract by users: in the case of unpaid rent or charges at the end of the rental period, to cover the cost of rental repairs and any damage caused, in the case of failure to maintain the property...
For firm reservations of goods or services
This is generally referred to as a down payment. This partial payment prior to contract execution offers financial and transactional security.
When you ask a customer for a deposit, you need to issue a deposit invoice.
The benefits
A deposit allows you to avoid having to pay certain costs in advance, while preserving all or part of your cash flow.
It reduces unpaid invoices, as an advance invoice commits both the customer and the contractor to seeing the sales process through to the end.
It enables customers to spread their costs, and provides reassurance to suppliers.
Who we are
With more than 60,000 customers, Easytransac capitalizes on a decade of expertise in various payment solutions (distance selling, ecommerce, convenience selling, cashless, mobile payment...).
Recently integrated into the HOPPS group and in strategic alliance with InEvents, Easytransac is at the forefront of innovation in the ecosystem of electronic payments and hybrid and cashless solutions that meet the requirements of e-tailers, event professionals and SMEs.
Our platform simplifies transactions and enriches the user experience, thanks to an intuitive interface and real-time tracking, while ensuring security at every payment.
