Card hold vs deposit: which is better for a mobile mechanic?

Both a card hold and a deposit put something behind a booking. They feel very different to the customer, and they behave differently for you. Here is how they compare so you can pick the one that fits your work.

What a card hold is

A hold (also called an authorization) sets an amount aside on the customer’s card. The money stays in their account and nothing is paid to you. If you never use it, it drops off their card by itself, usually within about a week (their bank decides exactly when). If you use it, it becomes part of a real charge.

What a deposit is

A deposit is a real payment, taken up front. The money moves to you. If the job is cancelled, you have to refund whatever you decide to give back, and the customer waits for it to return to their card.

Side by side

• Customer’s view: a hold feels low-risk (“they are just reserving it”); a deposit feels like paying before you have seen the work.
• Refunds: with a hold, releasing it is a single step and nothing has to be paid back. With a deposit, a refund is a second transaction.
• Getting people to agree: a hold can feel easier to accept than a payment up front, especially for a first-time customer.
• Time limit: a hold does not last forever. If you book jobs weeks ahead, a hold placed at booking may expire before the visit, while a deposit does not.
• Money in hand: a deposit puts cash in your account today. A hold does not pay you until you use it.

Which should you use?

• Jobs booked within a few days: a hold is usually the simpler choice. It is easy to explain, nothing has to be paid back if it is released, and the customer feels less exposed.
• Big jobs with parts you have to buy first: a deposit for the parts cost, or a hold plus asking for parts money before you order.
• Bookings made weeks out: a deposit, or send the hold request closer to the date.

What to tell the customer

Whatever you pick, say in one sentence what will happen: what is held or paid, when it is released, and when a fee applies. Surprises are what cause disputes.

Holds in FlagHour

FlagHour uses holds. Your customer gets a text link, puts the hold on their card with Apple Pay, Google Pay or a card, and your job card shows PROTECTED. The card details go to Stripe, never to you and never to FlagHour, and payments go straight into your own Stripe account. After the job, the hold counts toward the bill and the rest is charged to the same card.