What is the difference between a Security deposit and Refundable deposit?

A Security deposit is where you can “hold” the damage deposit by holding either a cheque or money on the guest's credit/debit card (dependent on your payment processor – this works with Sage Pay and Holiday Rent Payment). You don’t physically take the money unless there are damages at the end of their stay.

A Refundable deposit is where you include this money within the main deposit or balance payment of the booking.
For example, if you take £500 refundable deposit, you would add this figure to your deposit/balance. The guest will pay this money to you and then you need to refund or retain the money depending on damages after the guest's stay.

Note: Always be clear in your Terms and Conditions on how you retain and refund your damage deposits.