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Pre-Authorize Payments Instructions

Overview:

When you enable pre-authorization or the card-on-file payment option for reservations, the system will present different methods to the customer depending on how far in advance they make the reservation.

  • If the reservation is within X days (12 hours before that window closes), the pre-authorization method is used.
  • If the reservation is beyond X days, the card-on-file method is used.

This setup ensures that if the customer does not show up to the reservation, you still have 12 hours to charge them using the pre-authorization.

Stripe defines a 7-day window for pre-authorizing credit cards. If you need additional days, you will need to contact Stripe support to request an extension for your account.

https://docs.stripe.com/payments/place-a-hold-on-a-payment-method

Key Differences between Payment Methods:

Pre-Authorize Method:

  1. Timing: This method is used when the reservation is within the X-day window (set in the Stripe settings).

  2. Process: A hold is placed on the customer’s card for the reservation amount.

  3. Guarantee: If the customer does not show up, you can charge the pre-authorized amount from the dashboard.

  4. Popup: The user will see a popup message asking them to pre-authorize the payment, as shown in the image below:

    Pre-authorize

Card-on-File Method:

  1. Timing: Used when the reservation is beyond the X-day window.

  2. Process: The customer’s card details are saved, but no hold is placed on the card until further action is taken.

  3. Risk: There's a possibility the card could lack sufficient funds when charging later since no pre-authorization occurred. This scenario is depicted in the image below:

    Save card

Stripe Pre-Authorization Settings:

Stripe allows you to hold a pre-authorization for up to 7 days. You can request Stripe to extend this period if needed. In your Stripe settings, you can define the number of days for which pre-authorization is valid. Below is an image showing where you can configure this setting:

Stripe setup number of days to pre-authorize

Steps to Enable Pre-Authorization in Shift Payments:

  1. Go to the "Shift Payments" tab and enable the pre-authorization option, as shown in the following image:

    Select option to pre-authorize

  2. Customers making reservations will be prompted to pre-authorize a payment. If the user tries to pre-authorize a card and there are insufficient funds, they will see this message:

    Insufficient funds

  3. If the card is declined, this message will be shown to the user:

    Card declined

Charging No-Show Customers:

If a customer pre-authorizes a payment but does not show up for their reservation, you can charge them from your dashboard. Here’s how:

  1. From the dashboard, click the button to charge the pre-authorized card, as seen below:

    Dashboard button to charge pre-authorized card

  2. A confirmation popup will appear to finalize the charge:

    Popup to confirm

  3. Once the charge is completed, it will be marked in green on the dashboard, indicating successful payment:

    Card pre-authorize paid

Customer Booking View:

The customer’s booking view will show the pre-authorized amount, helping you track which reservations have pre-authorized payments, as shown here:

Booking view

These steps help ensure a smooth process for securing payments and handling no-shows efficiently while utilizing Stripe’s pre-authorization and card-on-file features. For more details on how Stripe handles pre-authorization, visit their official documentation here.