Pre-auth is a process where we place a temporary hold on a guest’s credit/debit card before the transaction is finalized to verify that the card is valid and has sufficient funds or credit for the purchase. Read this guide for more information about Pre-auth, including how it works and what messaging you can share with your guests.
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Depending on the guest’s bank, the Pre-auth hold and release may look different on your guests’ bank statements.
Pre-authorizing a card does not guarantee that the guet will have sufficient funds to cover their entire final bill. If their final bill is much larger than the pre-auth amount, the transaction can still be declined if they have insufficient funds.
Pre-auth does not work when offline or in Offline Mode because your POS can’t talk to the external networks involved, such as the guest’s bank, without internet.
Your Pre-auth amount is initially set to $20. Meaning, when a tab is opened with a card-on-file, a $20 hold is placed on the card to ensure there’s a sufficient balance of at least $20 to spend at your establishment.
If $20 doesn’t work for you, contact Arryved Support to change your Pre-auth amount.
For any tabs rolling over to the next day, the pre-auth will automatically drop off after 48 hours if the tab is still open.
If the final bill is more than the Pre-auth amount, we run an additional authorization when closing the tab to charge for the difference.
Guest opens a tab → We pre-authorize $20.
Their final bill is $50 → We authorize the remaining $30 when they close out.
The pre-auth hold will be released once the final payment is processed, and any unused funds will be automatically reversed after 3-4 business days on average, but could take up to 7-10 business days. This is dependent on the guest’s bank.
Guest opens a tab → We pre-authorize $20.
Their final bill is $15 → $5 will be released from hold by the bank after 3-4 business days.
Pre-auth helps you reduce chargebacks and failed payments due to insufficient funds, ultimately saving you money!
Pre-auth uses card data for authorization and creates a more secure transaction.
Are you uncomfortable with the $20 amount? Think it might be too high or too low for your type of crowd? No problem, you can decide the perfect Pre-auth amount for your business between $1.00 and $30.00. Contact Arryved Support to make an update. Keep in mind, that the lower you go, the higher the risk for insufficient funds.
Pre-authorization is only needed if a guest wants to leave their tab open. This is to verify that they have enough funds to pay for that beer they are about to walk away with before actually paying for it.
If a guest is making a one-time purchase, it’s probably best to do a Quick Close transaction where pre-auth is not needed, so they won’t have to deal with a pending charge. Staff should try to avoid opening a tab with a card-on-file, then immediately closing it out after sending just the one order through; they should use Quick Close instead:
Read the Quick Close Overview guide to learn how to enable the Quick Close buttons for specific Venues in your POS and how to perform a Quick Close transaction.
With Pre-authorization, your guests will see pending charges on their bank statements. To help avoid guest friction, we recommend posting signage and educating your staff on what your guests should expect with Pre-authorization.
Below are some responses to common questions that you can share with your staff so they are equipped and ready to answer. Scroll down further to print the PDF version and and stash it behind your bar!
"Hey there! You might notice a temporary charge when you start a tab—that’s a pre-authorization. It’s just a quick card check to make sure everything runs smoothly when it’s time to close out. Don’t worry, it’s not an extra charge! This is a common practice at bars, restaurants, hotels, and gas stations to ensure the card is valid and to help streamline the close-out process. Once your tab is finalized, the correct amount will go through, and your bank will drop the hold in a few days."
"We totally get it—seeing an unexpected charge can be confusing. But don’t worry, we aren’t charging you twice! What you’re seeing is just a temporary hold, not an extra charge. Once your tab is closed, the final total replaces the hold, and any difference disappears within a few days, depending on your bank."
"You might not have seen this before, but pre-authorizing cards is actually a super common practice at bars, restaurants, and hotels. It just helps us make sure your card is good to go and speeds up closing out your tab. Nothing’s changing with what you’re paying—just a little behind-the-scenes magic to keep things running smoothly!"
"We hear you—no one likes surprise holds on their card. The good news? This is just a temporary thing. Your bank will drop the hold in a few days, and you’ll only be charged for what you actually spent. If it’s still showing after a few days, a quick call to your bank should clear it up!"
“When we open a tab for you, we place a temporary hold of $20 to verify your card. If your final bill is higher, we run an additional authorization for the remaining amount.
For example,
You start a tab, and we authorize $20. If your final bill is $50, we authorize an additional $30 when you close out.
No extra charges! You’re only charged for what you actually spend, and any unused holds disappear within a few days (timing depends on your bank).
This is a common practice at bars, restaurants, and hotels to ensure smoother transactions and prevent declined payments.”
Want to learn more about pre-auth and debunk some common myths? Check out our blog.