Overview

Credit and debit card pre-authorization stands as a crucial feature widely employed in bustling bars and nightclubs. This functionality enables bartenders and waitstaff to swipe a card for a customer’s order, creating a bar tab, and simultaneously confirming the authenticity of the customer’s bank account while verifying available funds. 

Pre-authorization is solely effective when swiping a card and does not apply to credit card chip/EMV dip payments or contactless payments, such as tapping a card.

Frequently Asked Questions

• What amount does the check get pre-authorized for?
• Can I establish a minimum amount for each pre-authorization?
• What constitutes a typical minimum pre-authorization amount?
• Is it possible to set a $0 minimum?
• Why would I swipe a card without any items on the check?
• Can I manually enter a card number for pre-authorization?
• Does pre-authorization work with tap-and-dip functionality?
• Can I enable pre-authorization on specific Blogic devices only?
• Can a check be paid for with a different payment method than the pre-authorized card?
• Can a saved card be used to partially pay for a check?
• Does pre-authorizing a credit card place a hold on the customer’s funds?
• Does pre-authorizing a card initiate a tab for the customer?
• How does pre-authorizing cards impact the end-of-day process?
• Will pre-authorized cards appear differently in reporting?
• Can I adjust or void checks paid with a pre-authorized card?
• Can I pre-authorize more than one card on a check?
• Can I pre-authorize on one terminal and close the check on another?
• What happens with split checks containing a pre-authorized card?
• How do pre-authorization transactions appear on bank statements?

What amount does the check get pre-authorized for?

Upon swiping, the card will either receive a pre-authorization for the predetermined amount configured or it will be processed as payment for the items added to the check.

Pre-authorizing a card does not ensure that the customer will possess adequate funds to cover the entire check. Pre-authorization only functions if the card is swiped before any items are added to the check. Once items are added, the card will be charged as a standard payment.

Can I establish a minimum amount for each pre-authorization?

Indeed. Within BLogic Dashboard, you can set a minimum pre-authorization amount. If a card is swiped on a check lacking sufficient items to meet the minimum pre-authorization amount, it will be pre-authorized for the specified amount (refer to configuration). If the guest’s check exceeds the minimum pre-authorization amount, BLogic will pre-authorize the card for the higher amount by default.

What constitutes a typical minimum pre-authorization amount?

Many establishments opt to set their minimum pre-authorization amount to match the average price of an alcoholic beverage.

Is it possible to set a $0 minimum?

No. A minimum pre-authorization of at least $0.01 is required.

If a guest lacks sufficient funds to complete the transaction, the payment will be declined upon close-out. If a guest does not have enough funds for the pre-authorization itself, the transaction should be declined outright.

Why would I swipe a card without any items on the check?

Swiping a card before adding any items to a check not only initiates a tab for the customer but also verifies the customer’s bank account and saves the card information for use as a payment method upon closing the check. However, it will not verify the customer’s bank account for sufficient funds unless a minimum pre-authorization amount is set.

Can I manually enter a card number for pre-authorization?

No. Cards must be physically present and swiped on the order screen for pre-authorization to occur.

Does pre-authorization work with tap-and-dip functionality?

No, pre-authorization only operates through card swiping.

Can I enable pre-authorization on specific Blogic devices only?

Yes. While pre-authorization is a global setting in Blogic Dashboard, individual devices can be configured to disable pre-authorization. If a credit card is swiped on a device with pre-authorization turned off, the card will be charged.

Can a check be paid for with a different payment method than the pre-authorized card?

Yes. A check with a pre-authorized card can be paid using another payment method. Pre-authorized cards serve as an additional payment option, allowing flexibility in payment methods.

Can a saved card be used to partially pay for a check?

When swiped, the card will either receive pre-authorization for the pre-configured amount set within Paym

Does pre-authorizing a credit card place a hold on the customer’s funds?

Yes. Although Blogic immediately voids the pre-authorized amount, how pre-authorizations appear in bank statements varies depending on the cardholder’s bank. Typically, pre-authorizations result in pending charges that disappear after one to two business days.

Does pre-authorizing a card initiate a tab for the customer?

Yes. Swiping a card initiates a tab for the guest, saving the cardholder’s name and credit card information for future use.

How does pre-authorizing cards impact the end-of-day process?

Checks with pre-authorized cards remain as “open checks” until closed out. Closing a check to the pre-authorized card moves it to “Paid checks” for adjustment before final closure.

Will pre-authorized cards appear differently in reporting?

No. Pre-authorized credit cards appear like regular credit card payments in reporting.

Can I adjust or void checks paid with a pre-authorized card?

Yes. Checks closed out with a pre-authorized card can be adjusted or voided like ordinary credit card payments.

Can I pre-authorize more than one card on a check?

No. Each check can contain only one pre-authorized card.

Can I pre-authorize on one terminal and close the check on another?

Yes. A check can be closed to a pre-authorized card regardless of the terminal used for pre-authorization.

What happens with split checks containing a pre-authorized card?

The pre-authorized payment remains on the first check. Subsequent split checks can have a pre-authorized card added individually.

How do pre-authorization transactions appear on bank statements?

Pre-authorization transactions may result in pending charges that typically disappear after one to two business days.