Pre-authorisation & Completion
A credit card pre-authorisation is when you put a temporary "hold" on funds on your customer’s card and then complete the transaction once the service is completed or goods exchanged.
How businesses use pre-auths
Pre-authorisation and completion transactions are great for any business that offers their service in advance of payment. For example, accommodation businesses can use a pre-auth to ensure a guest has sufficient credit at check-in to cover the cost of their planned stay.
Save money, reduce risk
Pre-authorisations reduce your risk of being the target of theft or fraud, and the costs of supporting card-not-present transactions. Using a pre-authorisation solution can also help your customers manage their costs and makes settling accounts easier as your customers don't need to present their cards again to complete a pre-authorisation transaction.
Additional pre-authorisations allow you to increase the value of an open pre-authorisation to include all costs incurred into one, simple completion transaction.
This is great for any business that provides a service where the final cost can vary. For example, a dressmaker might use a pre-authorisation to take a 'deposit' from a client and then use additional pre-authorisations if further materials or hours are required to meet their customer’s needs. For accommodation businesses, if a guest orders a massage or room service, an additional pre-auth can be applied to increase the value of the initial pre-authorisation made at check-in to include the cost of these services. If you offer bar tabs, catering or function services you can simply take a deposit and then use an additional pre-authorisation if additional services, food or drinks are requested by your guests.
Your customer does not need to present their card again. You simply perform a completion transaction and the funds settle into your bank account like a regular credit card transaction.
With Delayed Charges, there's no need to chase customers for payment. You can process a delayed charge against a completed pre-auth to ensure your customer covers the cost of all services received - even after they have left. With delayed charges, accommodation businesses can offer the convenience of an express check-out booth where guests simply deposit their room key, without risking lost revenue if the guest has used the mini bar or other services.
Keep Track With Reporting
Use the Open Pre-Auth Report on your terminal to quickly get an overview of all of your open pre-auths. Grant staff access to find misplaced authorisation numbers.
Standard Pre-Auth & Completion functionality, including open pre-auth reporting, is available to any merchant using an EFTPOS NZ terminal on the Verifone network at no additional charge. Delayed charges and Additional Pre-Auths are now available to EFTPOS NZ customers on the Verifone network for just $9.95 + GST per terminal, per month.