Collecting deposits

Deposits are an important part of managing risk and ensuring security when offering car subscriptions and rentals. Loopit allows you to configure, collect, and manage deposits with flexibility. This guide will walk you through how to set up and manage deposits within the Loopit platform.

Configuring Deposits

Navigate to Settings

• Log in to your Loopit account.

• Go to the Settings menu.

Select Packages

• Click on Packages to manage the subscription or rental plans available to customers.

• Choose the package you want to associate a deposit with.

Set Deposit Amount and Type

• Scroll down to the Charges and Deposits section.

• Click on Deposits to access the deposit configuration settings.

• You can define multiple deposit types. While many providers use a Security Deposit, you can also configure a Credit Note Deposit to handle upfront subscription payments.

• Specify the deposit amount and choose the appropriate handling type.

Choosing How Deposits Are Charged

Loopit provides flexibility in how deposits are processed, allowing you to choose the method that best fits your business model:

Hold Payment vs. Charge vs. Credit Note

• Hold Payment: Places a temporary authorisation on the customer’s payment method without withdrawing funds. Best for short-term damage excesses or minor incidentals.

• Charged Deposit: Deducts the funds from the customer’s account to be held as collateral, which can be refunded later.

• Credit Note Deposit: Collects the funds upfront and automatically converts them into a standing credit balance.

Deposit Timing

• Deposits can be collected at the time of booking, before vehicle pickup, or on the start date of the subscription/rental.

• You can stack different types—for example, taking a Security Deposit Hold for asset protection and a Credit Note Deposit for upfront payment simultaneously.

Choosing When Deposits Are Charged

It is possible to have your customers pay a deposit as part of the booking application process, or at the time of activation, in order to secure their vehicle.

When configuring a new deposit charge type against a package, you can choose between two options:

• Booking Confirmation: The deposit will be processed upon successful submission of the booking application.

• Booking Activation: The deposit will be processed when the booking is activated.

Collect Deposit On Application

This configuration will automatically charge any configured deposit during the initial application process.

Set Collect Deposit On

• Click on Packages to manage the subscription or rental plans available to customers.

• Choose the package you want to configure the deposit for.

• Select Deposits from the Charges and Deposits section.

• Set the applicable deposit type (e.g., Credit Note) to Collect Deposit On: Booking Confirmation.

Configure Website Booking Settings

• Go to Settings, then select Booking Rules.

• Select the Program Type that you want to configure deposit collection for.

• From the Website tab, ensure Collect Deposit is selected.

Managing Credit Note Deposits

When a Credit Note Deposit is collected, Loopit automates the accounting and application process to ensure your ledger stays balanced:

• Automatic Conversion: The system generates a valid Credit Note as soon as the deposit is processed.

• Drawdown Priority: Loopit will automatically apply this credit to the customer's first invoices. The customer’s payment method will only be charged once the credit balance reaches zero.

• Accountant Friendly: Because these are handled as Credit Notes rather than static bonds, revenue recognition and tax reporting are streamlined for your finance team.

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