How Parked Funds Works

Parked Funds is a payments workflow layer designed specifically for rental and hire businesses. It sits between your booking system and Stripe, handling the complex payment authorization and capture processes that rental companies need.

The Problem We Solve

Traditional payment systems aren't built for rental businesses. You need to:

• Hold security deposits (bonds) without charging customers upfront
• Auto-refresh payment authorizations when rentals extend
• Charge customers after their rental ends for damages, parking tickets, or other fees
• Provide clear communication to customers about what they're being charged for

Parked Funds handles all of this automatically, so you can focus on running your business.

How It Works

1. Bond Holds

When a customer makes a booking, Parked Funds creates a payment authorization (hold) on their card. This reserves the funds without actually charging them. The hold appears on their statement as a pending authorization.

Key points:

• No money is charged upfront
• The hold expires after a set period (typically 7-10 days)
• If the rental extends, we automatically refresh the hold
• If everything is fine, the hold is released and no charge occurs

2. Post-Hire Charges

After a rental ends, you can handle post-rental issues in two ways:

Option A: Incidents (Pre-Charge Cases) When you need information before deciding on a charge:

• Create an incident with a customer-facing question
• Customer receives an email with a secure link to respond
• Customer provides explanation and can upload photos
• You review their response and decide: close (no charge) or convert to a charge

Option B: Direct Post-Hire Charges When you're confident about the charge:

• Create a post-hire charge for:
  • Damage to the vehicle
  • Parking or traffic fines
  • Late return fees
  • Cleaning fees
  • Other agreed-upon charges

Parked Funds sends the customer a preview email with details of the charge. They can:

• Review the charge and evidence
• Approve and pay
• Dispute if they disagree

Why use incidents? Starting with an incident reduces disputes by collecting the customer's side of the story first. Many issues can be resolved without a charge, and when a charge is needed, customers are more likely to accept it if they've already provided their explanation.

3. Customer Communication

Every step is communicated clearly to customers via email:

• When a bond hold is created
• When a hold is refreshed
• When a post-hire charge is created
• When a charge is disputed or resolved

Integration

Parked Funds integrates with your existing booking system via API or webhooks. You don't need to change how you take bookings—just send us the booking details and we handle the payments.

Security & Compliance

All payments are processed securely through Stripe, which is PCI-DSS Level 1 compliant. We never store full card details—everything goes through Stripe's secure infrastructure.

Frequently Asked Questions

Q: Do customers need to sign up for Parked Funds?
A: No. Customers just pay through the secure payment links we send them.

Q: What if a customer disputes a charge?
A: We provide a built-in dispute workflow. Customers can submit disputes with evidence, and you can review and respond through the Parked Funds dashboard.

Q: How quickly are funds available?
A: Standard Stripe payout timelines apply (typically 2-7 business days depending on your location).

Q: Can I use Parked Funds with my existing Stripe account?
A: Yes. Parked Funds works with Stripe Connect, so funds go directly to your Stripe account.