Security deposits for WooCommerce rentals

Lost a $2,000 lens to a careless renter? Security deposits give you recourse.

Security deposits protect your inventory by collecting a refundable amount at checkout. If equipment comes back damaged, you have funds to cover repairs. If it returns in good condition, you refund the deposit.

Enabling deposits

Deposits are configured per product:

1. Edit the product and scroll to the Rental product data metabox
2. Click the Deposit tab
3. Enter the Deposit amount
4. Configure calculation and tax options as needed

The deposit amount appears as a separate line item at checkout and is included in the order total.

Deposit calculation

Two calculation methods are available:

Fixed deposit: The same deposit amount regardless of quantity. Rent 1 camera or 5 cameras, the deposit is still $200.

Per-quantity deposit: Deposit multiplied by the rental quantity. $200 deposit × 5 cameras = $1,000 total deposit.

Choose the method that matches your risk exposure. High-value items where each unit matters warrant per-quantity deposits. Lower-value items where the batch is the concern work better with fixed deposits.

Tax handling

Deposits can be taxed or tax-exempt depending on your jurisdiction’s requirements:

Taxable: Tax is calculated on the deposit amount using the product’s tax class or a specific tax class you assign to deposits.

Non-taxable: No tax applied to the deposit. Common in jurisdictions that treat refundable deposits as trust funds rather than revenue.

Check with your accountant on the correct treatment for your location. The setting is found in the Deposit tab under Deposit tax status.

Non-refundable deposits

Some businesses use deposits as cleaning fees or damage waivers that are never refunded. Enable the Non-refundable option to indicate this to customers.

When marked non-refundable:

• The deposit still appears as a line item at checkout
• Customers see it labeled appropriately
• You retain the full amount regardless of return condition

This is functionally a fee, but structuring it as a deposit keeps pricing presentation clean.

Refunding deposits

When equipment returns in good condition, refund the deposit through WooCommerce’s standard refund process:

1. Open the order in WooCommerce
2. Click Refund
3. Enter the deposit amount to refund
4. Process through your payment gateway

Partial refunds work if you need to deduct for minor damage. Refund $150 of a $200 deposit and keep $50 for repairs.

Payment processor fees

Important: Deposits are included in the checkout total, which means payment processor fees (Stripe, PayPal, etc.) apply to the full amount including the deposit.

On a $500 rental with a $200 deposit, you pay processing fees on $700. When you refund the $200 deposit, most processors do not refund their fee on that portion.

Factor this into your deposit amounts or rental pricing if processor fees significantly impact your margins.

Partial payments integration

For more complex deposit workflows, Rental Products integrates with the Deposits & Partial Payments for WooCommerce plugin by Acowebs. This allows additional functionality, such as:

• Collecting deposit now, balance later
• Payment plans for high-value rentals
• Separate deposit and rental payment schedules

The integration is automatic when both plugins are active.

Next: Set up rental pricing →