Skip payment process if item is free to borrow

backend/models/Rental.js

@@ -62,7 +62,7 @@ const Rental = sequelize.define("Rental", {
     defaultValue: "pending",
   },
   paymentStatus: {
-    type: DataTypes.ENUM("pending", "paid", "refunded"),
+    type: DataTypes.ENUM("pending", "paid", "refunded", "not_required"),
     defaultValue: "pending",
   },
   payoutStatus: {

backend/routes/rentals.js

@@ -233,12 +233,12 @@ router.post("/", authenticateToken, async (req, res) => {
     // Calculate fees using FeeCalculator
     const fees = FeeCalculator.calculateRentalFees(totalAmount);
 
-    // Validate that payment method was provided
+    // Validate that payment method was provided for paid rentals
-    if (!stripePaymentMethodId) {
+    if (totalAmount > 0 && !stripePaymentMethodId) {
-      return res.status(400).json({ error: "Payment method is required" });
+      return res.status(400).json({ error: "Payment method is required for paid rentals" });
     }
 
-    const rental = await Rental.create({
+    const rentalData = {
       itemId,
       renterId: req.user.id,
       ownerId: item.ownerId,
@@ -247,13 +247,19 @@ router.post("/", authenticateToken, async (req, res) => {
       totalAmount: fees.totalChargedAmount,
       platformFee: fees.platformFee,
       payoutAmount: fees.payoutAmount,
-      paymentStatus: "pending",
+      paymentStatus: totalAmount > 0 ? "pending" : "not_required",
       status: "pending",
       deliveryMethod,
       deliveryAddress,
       notes,
-      stripePaymentMethodId,
+    };
-    });
+
+    // Only add stripePaymentMethodId if it's provided (for paid rentals)
+    if (stripePaymentMethodId) {
+      rentalData.stripePaymentMethodId = stripePaymentMethodId;
+    }
+
+    const rental = await Rental.create(rentalData);
 
     const rentalWithDetails = await Rental.findByPk(rental.id, {
       include: [
@@ -310,12 +316,14 @@ router.put("/:id/status", authenticateToken, async (req, res) => {
       return res.status(403).json({ error: "Unauthorized to update this rental" });
     }
 
-    // If owner is approving a pending rental, charge the stored payment method
+    // If owner is approving a pending rental, handle payment for paid rentals
     if (
       status === "confirmed" &&
       rental.status === "pending" &&
       rental.ownerId === req.user.id
     ) {
+      // Skip payment processing for free rentals
+      if (rental.totalAmount > 0) {
         if (!rental.stripePaymentMethodId) {
           return res
             .status(400)
@@ -385,6 +393,31 @@ router.put("/:id/status", authenticateToken, async (req, res) => {
           details: paymentError.message,
         });
       }
+      } else {
+        // For free rentals, just update status directly
+        await rental.update({
+          status: "confirmed"
+        });
+
+        const updatedRental = await Rental.findByPk(rental.id, {
+          include: [
+            { model: Item, as: "item" },
+            {
+              model: User,
+              as: "owner",
+              attributes: ["id", "username", "firstName", "lastName"],
+            },
+            {
+              model: User,
+              as: "renter",
+              attributes: ["id", "username", "firstName", "lastName"],
+            },
+          ],
+        });
+
+        res.json(updatedRental);
+        return;
+      }
     }
 
     await rental.update({ status });

backend/services/refundService.js

@@ -92,8 +92,8 @@ class RefundService {
       };
     }
 
-    // Check payment status
+    // Check payment status - allow cancellation for both paid and free rentals
-    if (rental.paymentStatus !== "paid") {
+    if (rental.paymentStatus !== "paid" && rental.paymentStatus !== "not_required") {
       return {
         canCancel: false,
         reason: "Cannot cancel rental that hasn't been paid",

backend/tests/unit/routes/rentals.test.js

@@ -323,7 +323,7 @@ describe('Rentals Routes', () => {
       expect(response.body).toEqual({ error: 'Item is already booked for these dates' });
     });
 
-    it('should return 400 when payment method is missing', async () => {
+    it('should return 400 when payment method is missing for paid rentals', async () => {
       const dataWithoutPayment = { ...rentalData };
       delete dataWithoutPayment.stripePaymentMethodId;
 
@@ -332,7 +332,49 @@ describe('Rentals Routes', () => {
         .send(dataWithoutPayment);
 
       expect(response.status).toBe(400);
-      expect(response.body).toEqual({ error: 'Payment method is required' });
+      expect(response.body).toEqual({ error: 'Payment method is required for paid rentals' });
+    });
+
+    it('should create a free rental without payment method', async () => {
+      // Set up a free item (both prices are 0)
+      Item.findByPk.mockResolvedValue({
+        id: 1,
+        ownerId: 2,
+        availability: true,
+        pricePerHour: 0,
+        pricePerDay: 0
+      });
+
+      const freeRentalData = { ...rentalData };
+      delete freeRentalData.stripePaymentMethodId;
+
+      const createdRental = {
+        id: 1,
+        ...freeRentalData,
+        renterId: 1,
+        ownerId: 2,
+        totalAmount: 0,
+        platformFee: 0,
+        payoutAmount: 0,
+        paymentStatus: 'not_required',
+        status: 'pending'
+      };
+
+      Rental.create.mockResolvedValue(createdRental);
+      Rental.findByPk.mockResolvedValue({
+        ...createdRental,
+        item: { id: 1, name: 'Free Item' },
+        owner: { id: 2, username: 'owner1', firstName: 'John', lastName: 'Doe' },
+        renter: { id: 1, username: 'renter1', firstName: 'Jane', lastName: 'Smith' }
+      });
+
+      const response = await request(app)
+        .post('/rentals')
+        .send(freeRentalData);
+
+      expect(response.status).toBe(201);
+      expect(response.body.paymentStatus).toBe('not_required');
+      expect(response.body.totalAmount).toBe(0);
     });
 
     it('should handle database errors during creation', async () => {
@@ -422,6 +464,34 @@ describe('Rentals Routes', () => {
       });
     });
 
+    it('should approve free rental without payment processing', async () => {
+      const freeRental = {
+        ...mockRental,
+        totalAmount: 0,
+        paymentStatus: 'not_required',
+        stripePaymentMethodId: null,
+        update: jest.fn().mockResolvedValue(true)
+      };
+
+      mockRentalFindByPk.mockResolvedValueOnce(freeRental);
+
+      const updatedFreeRental = {
+        ...freeRental,
+        status: 'confirmed'
+      };
+      mockRentalFindByPk.mockResolvedValueOnce(updatedFreeRental);
+
+      const response = await request(app)
+        .put('/rentals/1/status')
+        .send({ status: 'confirmed' });
+
+      expect(response.status).toBe(200);
+      expect(StripeService.chargePaymentMethod).not.toHaveBeenCalled();
+      expect(freeRental.update).toHaveBeenCalledWith({
+        status: 'confirmed'
+      });
+    });
+
     it('should return 400 when renter has no Stripe customer ID', async () => {
       const rentalWithoutStripeCustomer = {
         ...mockRental,

backend/tests/unit/services/refundService.test.js

@@ -295,6 +295,17 @@ describe('RefundService', () => {
           cancelledBy: null
         });
       });
+
+      it('should allow cancellation for free rental with not_required payment status', () => {
+        const rental = { ...baseRental, paymentStatus: 'not_required' };
+        const result = RefundService.validateCancellationEligibility(rental, 100);
+
+        expect(result).toEqual({
+          canCancel: true,
+          reason: 'Cancellation allowed',
+          cancelledBy: 'renter'
+        });
+      });
     });
 
     describe('Edge cases', () => {

frontend/src/components/RentalCancellationModal.tsx

@@ -152,7 +152,10 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
         <div className="modal-content">
           <div className="modal-header">
             <h5 className="modal-title">
-              {success ? "Refund Confirmation" : "Cancel Rental"}
+              {success
+                ? (rental.totalAmount > 0 ? "Refund Confirmation" : "Cancellation Confirmation")
+                : "Cancel Rental"
+              }
             </h5>
             <button
               type="button"
@@ -167,7 +170,10 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
                 <div className="mb-4">
                   <i className="bi bi-check-circle-fill text-success" style={{ fontSize: '4rem' }}></i>
                 </div>
-                <h3 className="text-success mb-3">Refund Processed Successfully!</h3>
+                <h3 className="text-success mb-3">
+                  {rental.totalAmount > 0 ? 'Refund Processed Successfully!' : 'Rental Cancelled Successfully!'}
+                </h3>
+                {rental.totalAmount > 0 && (
                   <div className="alert alert-success mb-4">
                     <h5 className="mb-3">
                       <strong>{formatCurrency(processedRefund.amount)}</strong> has been refunded
@@ -183,6 +189,7 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
                       </p>
                     </div>
                   </div>
+                )}
                 <p className="text-muted mb-4">
                   Thank you for using our platform. We hope you'll rent with us again soon!
                 </p>
@@ -227,6 +234,7 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
                   </div>
                 </div>
 
+                {rental.totalAmount > 0 && (
                   <div className="mb-4">
                     <h5>Refund Information</h5>
                     <div
@@ -249,6 +257,7 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
                       <small>{refundPreview.reason}</small>
                     </div>
                   </div>
+                )}
 
                 <form>
                   <div className="mb-3">
@@ -310,11 +319,13 @@ const RentalCancellationModal: React.FC<RentalCancellationModalProps> = ({
                         Processing...
                       </>
                     ) : (
-                      `Cancel with ${
+                      rental.totalAmount > 0
+                        ? `Cancel with ${
                             refundPreview.refundAmount > 0
                               ? `Refund ${formatCurrency(refundPreview.refundAmount)}`
                               : "No Refund"
                           }`
+                        : "Cancel Rental"
                     )}
                   </button>
                 )}

frontend/src/pages/RentItem.tsx

@@ -143,6 +143,21 @@ const RentItem: React.FC = () => {
     }
   };
 
+  const handleFreeBorrow = async () => {
+    const rentalData = getRentalData();
+    if (!rentalData) return;
+
+    try {
+      setError(null);
+      await rentalAPI.createRental(rentalData);
+      setCompleted(true);
+    } catch (error: any) {
+      setError(
+        error.response?.data?.error || "Failed to create rental request"
+      );
+    }
+  };
+
   const handleChange = (
     e: React.ChangeEvent<
       HTMLInputElement | HTMLTextAreaElement | HTMLSelectElement
@@ -225,17 +240,54 @@ const RentItem: React.FC = () => {
               ) : (
                 <div className="card mb-4">
                   <div className="card-body">
-                    <h5 className="card-title">Complete Your Rental Request</h5>
+                    <h5 className="card-title">
+                      {totalCost === 0
+                        ? "Complete Your Borrow Request"
+                        : "Complete Your Rental Request"}
+                    </h5>
+                    {totalCost > 0 && (
                       <p className="text-muted small mb-3">
                         Add your payment method to complete your rental request.
-                      You'll only be charged if the owner approves your request.
+                        You'll only be charged if the owner approves your
+                        request.
                       </p>
+                    )}
 
-                    {!manualSelection.startDate || !manualSelection.endDate || !getRentalData() ? (
+                    {!manualSelection.startDate ||
+                    !manualSelection.endDate ||
+                    !getRentalData() ? (
                       <div className="alert alert-info">
                         <i className="bi bi-info-circle me-2"></i>
-                        Please complete the rental dates and details above to proceed with payment setup.
+                        Please complete the rental dates and details above to
+                        proceed with{" "}
+                        {totalCost === 0
+                          ? "your borrow request"
+                          : "payment setup"}
+                        .
                       </div>
+                    ) : totalCost === 0 ? (
+                      <>
+                        <div className="alert alert-success">
+                          <i className="bi bi-check-circle me-2"></i>
+                          This item is free to borrow! No payment required
+                        </div>
+                        <div className="d-grid gap-2">
+                          <button
+                            type="button"
+                            className="btn btn-primary"
+                            onClick={handleFreeBorrow}
+                          >
+                            Confirm Borrow Request
+                          </button>
+                          <button
+                            type="button"
+                            className="btn btn-outline-secondary"
+                            onClick={() => navigate(`/items/${id}`)}
+                          >
+                            Cancel Request
+                          </button>
+                        </div>
+                      </>
                     ) : (
                       <>
                         <EmbeddedStripeCheckout
@@ -280,7 +332,7 @@ const RentItem: React.FC = () => {
                   <p className="text-muted small">
                     {item.city && item.state
                       ? `${item.city}, ${item.state}`
-                      : ''}
+                      : ""}
                   </p>
 
                   <hr />