On May 15, 2008, Visa USA Inc., made the following changes to their general rules:
5.2.M.4 Delayed or Amended Charges
A Merchant may process delayed or amended charges if the Cardholder has consented to be liable for delayed or amended chages for a T&E Transaction. All delayed or amended charges must be processed to the Cardholder?s account within 90 calendar days of either:
- Check-out, disembarkation, or car return date or
-For a parking ticket or traffic violation, date of notification to the Merchant by the civil authority
5.2.M.4.a
These charges may include costs for room, food and beverage charges, taxes, mileage charges, fuel, insurance, rental fees, parking tickets and other traffic violations, and must not include charges for loss, theft, or damage.
Basically, this means that we can no longer use a client?s credit card as a form of security deposit or to cover loss/damage that may occur during their tenancy in your dwelling. We can however, still accept credit cards for payment of rent and advance deposits.
With this considered, we have two options.
Option 1- require guests to pay a security deposit at the time of booking that can be refunded if there are no damages upon the guests departure.
Option 2- require all guests to purchase Security Deposit Insurance, which makes coverage available to your guests in lieu of requiring a security deposit. Security Deposit Insurance will cover up to $1,500 if the property or its contents are damaged during their stay, subject to terms and conditions. This is an actual insurance policy offered by CSA Travel. The cost of this policy is $85 per reservation.
Given the state of the economy, it is unlikely that vacationers have $1,500 of discretionary income that they are willing to take out of circulation to use as a damage/security deposit offered by Option 1. With that in mind, we have decided that Option 2 is the most viable way to provide renters with the most pleasant rental experience and protect our homeowners investments.