A credit limit is an individually approved amount you can use to create bookings without paying immediately.
The approved amount depends on factors such as your booking volume, payment history, and commercial agreement.
What credit limit models does RateHawk offer?
RateHawk offers three credit limit models. Your chosen model determines which unpaid bookings reduce your limit for new bookings.
Credit limit model | What reduces your limit for new bookings |
Total debt | All unpaid bookings |
Non-ref debt | Unpaid non-refundable bookings |
Protected debt | Unpaid bookings protected with Credit limit |
How is the limit for new bookings calculated under each model?
Suppose your credit limit is €50,000. You have:
€5,000 in unpaid non-refundable bookings
€10,000 in unpaid refundable bookings
For the Protected debt calculation only, €8,000 is protected with Credit limit: all €5,000 in non-refundable bookings and €3,000 in refundable bookings.
Credit limit model | Calculation | Limit for new bookings |
Total debt | €50,000 − (€5,000 + €10,000) | €35,000 |
Non-ref debt | €50,000 − €5,000 | €45,000 |
Protected debt | €50,000 − (€5,000 + €3,000) | €42,000 |
Under the Protected debt model, the remaining €7,000 in refundable bookings does not reduce your limit because the credit limit is not used to protect them.
When is a booking canceled automatically?
Only unpaid bookings can be canceled automatically. See how this works for each credit limit model below.
Total debt
Under Total debt, unpaid bookings are not canceled automatically. All unpaid refundable and non-refundable bookings are already secured against your credit limit.
Non-ref debt
The system checks each booking 30 minutes before the free cancellation deadline:
If the booking is paid, no further action is required.
If it is unpaid and your available credit limit is sufficient, the booking remains active against your credit limit.
If it is unpaid and your available credit limit is insufficient, the booking is canceled automatically.
Protected debt
For each unpaid booking, the system checks the selected protection option:
Credit limit: The booking amount is reserved against your credit limit, and the booking remains active.
Booking hold: The booking remains active until the displayed free cancellation deadline. Unless you pay the booking or switch to Credit limit before the deadline, it is canceled automatically.
For non-refundable bookings, Credit limit is the only available protection option.
Where can I find the free cancellation deadline?
The free cancellation deadline is the date and time before which you can cancel a booking without a penalty.
Go to “Orders.” The deadline is shown under “Free cancellation” on the order card and detailed order page.
Can I choose a credit limit model?
Yes. Together with your Account Manager, you can choose and configure the model that best fits your booking and payment process.