- May 22, 2008
- Reaction score
How do you do a pre auth? What does it mean?We also do a pre auth when the reservation is made. We have discovered that a pre- auth is only good for up to 30 days max. This requires us to run re-auths every 30 days to keep them valid. This is generally not a problem with credit cards (unless they are close to maxed out) because it approves against the customers available credit line. Debit cards are a problem since there is no credit line associated with them. They only have what the customer has in their bank account. Pre-auths on Debit cards have been problematic for us as they hold the $ to make it inaccessible to the customer. Many find this extremely inconvenient. I prefer to not take debit cards for reservations for this reason. They can use them for payment, however..
.This is when you scan the card (or key enter for deposits) and get an approved autorization # for the amount you request. Then that amount of $ is held in limbo, untouchable by the card holder until it is either released or the transaction is processed.Bree said:How do you do a pre auth? What does it mean?
Interesting phenom happened here...tried to run a check-in the other day and we use the 'folio' key to process the transaction. Folio 1 was 'in use'. Hmmm. We do the check-out immediately so the guest can sign the receipt. OK, re run card and use Folio 2. Folio 2 'in use'. Getting a bit weird. Tried Folio 3 and it worked. Went back into Folio 1 and there was a check-out waiting to be processed from the day before. Got guest to sign that on check-out. In Folio 2 was a transaction from 2008. Yup, 2008. About 54 weeks ago. Not knowing that at the time and thinking this was a recent transaction we did the check-out. Then could not find any bookings for that price. After an hour of calling this one and that we got the info we needed to track down the person who was charged (in our records, not in person). Our take on it was just to cancel the charge or refund the card as this was waaay too old to ask someone to pay for our error. No can do, we don't have the full cc number anymore. And the card is expired.Copperhead said:This is when you scan the card (or key enter for deposits) and get an approved autorization # for the amount you request. Then that amount of $ is held in limbo, untouchable by the card holder until it is either released or the transaction is processed.Bree said:How do you do a pre auth? What does it mean?
Curious how the payment went thru on an expired card and what will happen next. We managed to get some info from the processor and called the issuing bank (out of the country, long distance, foreign language, interesting call). They put a note on the account for when the card holder calls to refute the charges.
Walk-in guest with a card not issued in the country they gave us for an address.
But, it does bring up an interesting point on pre auths only being valid for 30 days...