Security Deposit for a Villa

I feel uncomfortable calling a Villa owner or management company and giving them my credit card number.

Who knows how they are handle my number? They might scribble the number down on a notepad and then leave it sitting on their desk. They might fill out a form and put it in a filing cabinet for anyone to later retrieve. They could have a theft that steals the credit cards. Or, the individual could be less than trustworthy and could use my credit card number to order a new 80 inch TV.

I often tell people "Buyer be ware". You don't really know what you are renting nor who you are dealing with. Be careful, do your homework, and protect yourself!

I like using my credit card to pay through Pay Pal. Using this method, the Villa representatives never see my credit card number. I also protect myself by using a credit card should I need to dispute the charge later on. I never send my credit card number through email because email is not encrypted - sending it through email is allowing anyone who wants to get my credit card number to do so. I also do not like writing my credit card number and faxing it - who knows how long my credit card number is going to sit on the fax machine for everyone to see? Finally, I don't like reading my credit card number to someone over the phone for reasons already mentioned.

One year, I was working with a management company that I had never worked with before and I was very concerned. They accepted my payment through PayPal, but the required my credit card number for a $300 security deposit. According to their policy, I needed to put the credit card number on a form and fax it to them. That violates my rules, however, the management company refused to negotiate on this issue.

I developed a creative way around the problem. I purchased a credit card gift card for $300 at Walmart. There is a small fee for a credit card gift card, but I considered the fee was worth the security. I provided the credit card gift card onto the form and faxed it. If my credit card number was going to be misused either immediately or years into the future, my exposure was only $300.  

After my stay and after a positive Villa inspection, I took my gift card to the store and spent it.

That was my creative solution to the credit card issue. Some might argue that if my credit card had been misused, FCBA limits exposure to $50, and I increased my exposure by using a $300 gift card. However, claiming loss is a lot of work, something I didn't want to deal with while on a vacation, and is something I have to watch for years. Also, most villa security deposits will place a $300 lock on your credit card, but will charge whatever they want to cover whatever damages they believe you caused. Through my method, the management company would need to contact me to discuss any damages beyond $300 rather than automatically charging me.  The $300 gift card was a great alternative and worked perfectly for me. It allowed me to comply with the Villa rules without risking credit card compromise.