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Why Do Our DIY Tool Hire Customers Keep Ringing About Deposit Refunds?

DIY tool hire customers ring to ask where their deposit is. We build a deposit tracker that releases or refunds on return and texts the customer what happened.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Deposit calls happen because DIY customers do not know whether their deposit was a card hold, a payment or cash, and nobody tells them when it has been released. We build a deposit tracker tied to each contract that records how the deposit was taken, releases or refunds it when the tool is checked in, and tells the customer what happened and when to expect it.

'I returned it on Saturday, where's my money?'

A customer hired a wallpaper steamer and returned it on Saturday. It is Wednesday. The deposit has not appeared back in their account and they are on the phone asking why. The counter checks the contract: deposit taken, tool returned, and then nothing. Was it a pre-authorisation that will drop off by itself? Was it a payment that needs a refund? Did someone do the refund on Saturday and it is just the bank being slow?

Nobody can say for certain without logging into the card terminal portal, and the customer ends up being told 'it should be with you in a few days', which is what they were told on Monday.

Why deposits turn into phone calls

  • Deposits are taken in different ways: card pre-authorisation, card payment, cash, or bank transfer for bigger items.
  • The contract records that a deposit was taken but not how, or its reference on the terminal.
  • Release depends on the return being checked in, which may happen hours after the customer leaves.
  • Refunds for damaged or dirty returns are part-refunds, and the calculation is done by hand.
  • The customer is never told what was done, so they ring.

Each of those is small. Together, they mean every deposit needs someone to remember to close it off.

The cost of loose deposits

Time on the phone with customers who are understandably anxious about their money. Refunds done twice by mistake, or not done at all. Holds that expire before a damage charge can be made, leaving you chasing a customer who has gone. Reviews that mention the deposit rather than the tool. And a Monday balancing job where the card terminal, the till and the hire software do not agree.

A deposit tracker tied to the contract

  1. When the deposit is taken, the method and terminal reference are recorded against the contract, taken from the card terminal's records where its provider allows, or entered once at the counter.
  2. When the tool is checked in clean and complete, the deposit is marked for release: a hold is released or a refund is issued through the payment provider's API where possible, or queued for a person to do.
  3. If there is a charge for damage, cleaning or late return, the tracker shows the deposit, the charge and the balance to refund, for a person to approve.
  4. The customer gets a text or email saying what has been done, the amount and how long their bank usually takes, in your wording.
  5. Deposits still open after the tool is returned are listed each morning for the manager.

Deposit states at a glance

StateMeaningNext step
HeldTool is out on hireNothing until return
Returned, cleanChecked in with no issuesRelease or refund
Returned, charge pendingDamage, cleaning or late returnManager approves amount
ReleasedHold released or refund sentCustomer told
Open too longReturned but still not closedMorning list

Fewer calls, cleaner balancing

Customers know what happened to their money because they were told. The counter can answer a deposit question in seconds when one does come in. Charges are made while the hold is still valid. And the weekly balancing starts from a list where every deposit has a state, rather than a hunt through terminal receipts.

Do deposits cause you grief?

  • Customers ring about deposit refunds most weeks.
  • You are not always sure whether a deposit was a hold or a payment.
  • Holds have expired before you could take a damage charge.
  • The card terminal and the hire software never quite reconcile.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Can it release card holds automatically?

That depends on your payment provider and card terminal. Some allow it through their API, others need a person to do it on the terminal, in which case the tracker queues it for them.

Who decides the deposit amount or any deductions?

You do. The tracker records and presents it. Your hire terms and your staff decide the amounts.

Does it handle cash deposits?

Yes. Cash deposits are recorded and their refund is logged at the till, so they appear in the same list as card ones.

What affects the cost of building this?

Mainly your payment provider and hire software, and how much of the release and refund can be done through their integrations rather than by hand.

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