A damage bond is a damage deposit the renter pays with money they send or debit themselves, instead of a hold on their credit card. Because it is not a card charge, the renter cannot charge it back through their bank after you keep part of it for damage.
- Canada: the bond is taken on Interac debit at your card reader when the renter departs, and returned to the same debit card on the reader when they come back.
- US: the renter sends the bond by bank transfer (ACH or wire) before the rental. RentalTide matches it to the booking automatically and refunds it to their bank after the rental.
Card holds are still available and stay free. Bonds are for deposits where a chargeback would hurt: you can set a minimum so small deposits keep using card holds.
Why use a bond
When a renter damages a boat and you capture their card hold, they can call their bank, say they did not authorize the charge, and get the money back. Card networks side with the cardholder on charges made after the rental, so the evidence (waiver, photos, damage report) rarely wins.
A bond is the renter's own money that you are holding. There is no card charge to dispute. If you keep part of it for damage, the renter's recourse is to talk to you (or small claims), not a one-click chargeback.
What it costs
| Each bond | C$25 in Canada, US$25 in the US, paid by you |
| Your renter | Pays nothing extra |
| Card holds | Free, as today |
| Largest bond | 3,000 (C$ or US$). A larger deposit is a 3,000 bond plus a card hold for the rest. |
The fee is charged only once a bond is actually held. A bond that is declined, never sent or cancelled costs nothing. A bond you return in full still costs the fee.
- Canada: the C$25 comes out of the bond payment when it is taken.
- US: the US$25 is taken from your Stripe balance when the transfer arrives (or added to your account balance if there is not enough).
Turn it on
Damage bonds are in preview. RentalTide switches them on for your location: ask support if you would like to try them.
Once they are on, Settings > Damage deposits > Damage bonds (Canadian and US locations only):
- Bond policy
- Card hold (default): deposits are card holds, as today.
- Bond preferred: take a bond; if the renter cannot, use a card hold instead.
- Bond required: a booking cannot depart without its bond. A manager can override with a reason, which is recorded on the booking.
- Minimum bond: bonds apply only to deposits of at least this amount (up to 3,000).
- Transfer due (US only): how many hours before the rental the bank transfer must arrive. Default 72.
Canada needs a Stripe card reader at the location (Interac is taken in person).
Canada: Interac at the dock
- Before arrival, the renter's Next Steps page tells them to bring their Canadian debit card.
- At departure, open the booking and press Take bond on reader in the Damage bond panel. The renter inserts their debit card and enters their PIN.
- If the renter has no Canadian debit card (visitors), or their bank declines the amount, press Use a card hold instead.
- When they return, press Return or keep bond. To keep some for damage, enter the amount and the reason. The renter inserts the same card on the reader to get the rest back.
- If the renter has already left, send the money back by e-Transfer or cash and press Returned another way.
Interac can only be refunded in person to the same card. If a bond is still held a day after the rental, you are alerted.
US: bank transfer
- A week before the transfer is due (10 days before the rental with the default 72-hour due time), the renter is emailed (and shown on Next Steps) the bank details, amount, reference and due time. Before that, Next Steps tells them when the details will arrive.
- When the transfer arrives, the bond shows as Held and the renter is told. If they send too little, they are asked for the rest.
- If it has not arrived by the due time, you and the renter are told:
- Bond preferred: a card hold is placed instead.
- Bond required: the booking cannot depart until it arrives (or a manager overrides).
- After the rental, on your usual deposit release time, the bond is refunded automatically. Stripe emails the renter to collect their bank details. To keep some for damage first, use Return or keep bond on the booking.
Last-minute bookings. A booking made after its transfer due time (inside 72 hours of the rental, by default) is never asked for a bond: there is no time for a bank transfer, so the whole deposit is a card hold, under either policy. The booking page says so in the Damage bond panel.
Your books
A bond is held money, never revenue:
| Event | Ledger |
|---|---|
| Bond received | DR 1020 Cash / CR 2170 Customer Bonds Held |
| Returned | DR 2170 / CR 1020 |
| Kept for damage | DR 2170 / CR 3015 Damages |
| Bond fee | DR 8194 Platform fees / CR 1020 (or 2150 when added to your account balance) |
Financials > Bonds Held lists every bond you are holding, oldest first, and ties to 2170 on the Trial Balance.
Rental agreement
Add a clause to your rental agreement saying the bond may be kept for damage under your damage policy, and how and when it is returned. A renter who disputes a kept bond meets a term they signed.