Does Square offer Pre-Authorisation?

I rent accommodation and we take a security deposit from guests on check-in and then return all or part of it maybe a week or two weeks later.

 

Can I take deposits from guest's credit card via Square and return it later to the same credit card.

 

Thanks so much!

2,769 Views
Message 1 of 4
Report
1 Solution
Square Community Moderator
Solution

Hi, @Chazawa, Thanks for your new post!

 

Currently, Square doesn’t offer the ability to pre-authorize cards. We also prohibit any businesses to take security deposits using Square.

I also would like to caution you to avoid testing a small amount of payment with customer’s credit card and use refund as a workaround. And here are the reasons:

 

Reason 1: The cardholder might receive a notification when the transaction is authorized even if you refund them immediately.

 

Reason 2: The test transaction may go through and show up the customer’s credit/debit card statement, depending on their bank or card issuer. This could cause the customer to raise an eyebrow and may become a problem.

 

Following is how the Credit cards payment is processed:

 

Authorization- This is when the transaction is verified by the credit card company. In this step, the credit card company see the customer’s credit card validity.

 

Capture- The transaction is captured after the validity of the card is confirmed.

 

 

Let me know if you have further inquiries!

SQ大竹-Otake
ベータマネージャー, Square
ベータコミュニティに参加しよう !
ベータに参加して、Square製品をより良いものにしませんか?

View Solution >

2,733 Views
Message 2 of 4
Report
3 REPLIES 3
Square Community Moderator
Solution

Hi, @Chazawa, Thanks for your new post!

 

Currently, Square doesn’t offer the ability to pre-authorize cards. We also prohibit any businesses to take security deposits using Square.

I also would like to caution you to avoid testing a small amount of payment with customer’s credit card and use refund as a workaround. And here are the reasons:

 

Reason 1: The cardholder might receive a notification when the transaction is authorized even if you refund them immediately.

 

Reason 2: The test transaction may go through and show up the customer’s credit/debit card statement, depending on their bank or card issuer. This could cause the customer to raise an eyebrow and may become a problem.

 

Following is how the Credit cards payment is processed:

 

Authorization- This is when the transaction is verified by the credit card company. In this step, the credit card company see the customer’s credit card validity.

 

Capture- The transaction is captured after the validity of the card is confirmed.

 

 

Let me know if you have further inquiries!

SQ大竹-Otake
ベータマネージャー, Square
ベータコミュニティに参加しよう !
ベータに参加して、Square製品をより良いものにしませんか?
2,734 Views
Message 2 of 4
Report

Hi @SQ大竹-Otake,

 

Thank you for the information. We'll be sure to stick by Square's rules regarding credit card use.

 

Thx!

2,721 Views
Message 3 of 4
Report
Square Community Moderator

@Chazawa, Thanks for your reply.

Your questions will be very helpful for other Square sellers as well so please do not hesitate to post your questions anytime!! 😁

SQ大竹-Otake
ベータマネージャー, Square
ベータコミュニティに参加しよう !
ベータに参加して、Square製品をより良いものにしませんか?
2,712 Views
Message 4 of 4
Report