Hold-on-Card Process

Overview

When a Customer books a Reservation or signs up for an Event, the system places a hold on the Customer's credit card to confirm the Customer has sufficient funds before any charge is finalized. The Customer is charged after the Reservation or Event, not at the time of booking.

Why PodPlay Places a Hold

A hold reduces the need for refunds. There is a Stripe Fee on every Customer transaction. If a Customer is charged at the time they sign up for an Event or book a Reservation and then cancels, the Stripe Fee is lost when the charge is refunded. Holding instead of charging avoids paying that fee on transactions that may not complete. A hold also lets the system bundle charges. Because the Customer is charged after the Event or Reservation, any additional charges incurred during the visit, such as a purchase from the Club's Shop, paddle rentals, or accidental damage to Club property, can be combined into a single charge rather than processed separately.

When the Hold Is Placed

The timing depends on how far in advance the Customer books and where the Club operates.

For US Clubs, if a Customer signs up within 6 days of the Event or Reservation (within a week), Stripe places the hold immediately. If a Customer signs up more than 6 days in advance (more than a week out), Stripe delays the hold and places it 24 hours before the Event or Reservation.

The delay exists because of the product's legal classification as sports entertainment (your time-bound inventory of court or table space / hour), under which a hold cannot remain pending for more than 7 days.

For Clubs located in the UK or EU, the rule are the same with an added layer of complication called 3D Secure (3DS).

To learn more, read about how timing changes what happens.

Different Hold-on-Card Strategies

Placing a hold on the Customer's credit card is the default charging strategy in the system. When a Club needs a different charging behavior, the system provides three options.

1. Option 1 — Default (Hold)

   1. Places a hold on the Customer's credit card. If a Customer signs up within 6 days of the Event or Reservation (within a week), Stripe places the hold immediately. If a Customer signs up >6 days in advance (more than a week out), Stripe places the hold 24 hours before the Event or Reservation. The delay exists because of the product's legal classification as sports entertainment, under which a hold cannot remain pending for more than 7 days.
2. Option 2 — Charge over Threshold

   1. Charges the Customer immediately if the Reservation or Event is more than 6 days out (more than a week), and places a hold on the Customer's credit card if the Reservation or Event is within 6 days (within a week). Charging early prompts the Customer to complete the 3D Secure (3DS) payment protocol. 3DS is a common fraud-prevention tool in the UK and EU, so many international Clubs use Option 2 or Option 3 in lieu of Option 1.
3. Option 3 — Charge Immediately

   1. Charges the Customer immediately for all Reservation bookings and Event signups. This lets a Club collect all revenue up front. The trade-off is a higher risk of revenue loss if the Club's Customer base cancels frequently, since each cancellation triggers a refund and the Stripe Fee is lost during any refunds.

Changing Your Strategy

To switch from one Hold-on-Card strategy to another, contact the Customer Success team for assistance.