Pre-authorization tip on terminal / BARS THAT USE PRE-AUTH HELP!

[ncardenny]

I'm setting up Square for Restaurants Plus at our Bar currently. Like many bars, we have our POS/iPad set up on the BACK bar, and use terminals, to complete payments so that the customer can close out and tip on the mobile terminal. 

Can anyone who has Square for Restaurants / use pre-authorization functionality tell me what your specific set up is? I find it really hard to believe that all pre-authorized tabs HAVE to be closed out on the iPad and cannot have the tip screen sent to the terminal for the customer to choose. The alternative seems to be literally picking up the entire iPad/Stand, and moving it onto the bar so the customer can choose a tip? There's no way that's the only option... 

Bars - How are you guys doing this?? 

[Summer2024]

Hi, @ncardenny ! 😁

This is a great question and hopefully it will generate some good discussion. 

Unfortunately, Square’s pre-authorization feature stores the customer's card token when swiped, but it’s tied to the POS device that captured it.

As of now:

• Pre-auth tabs must be closed (with final amount and tip) on that same iPad/POS device

• Terminals cannot interact with or close out pre-auth tabs, even if linked to the same Square account

This is obviously difficult if someone has a setup like yours. I'm going to provide some workarounds based on the research that I've done.

Workarounds

Option 1: Skip Pre-Auth, Use "Open Check + Card on File"

This is the most common workaround and what many Square bars end up doing:

1. Start a check without pre-auth

2. Swipe or dip the card and save it on file

3. When ready to close:

   • Pull up the check on the Square Terminal

   • The customer adds a tip and completes the transaction on the terminal

Pros:

• Customer gets to use the terminal (no moving the iPad)

• Smooth tip entry experience

• Minimal training needed

Cons:

• No funds are held in advance like with true pre-auth

• Slight risk if customer walks out 

Option 2: Use Pre-Auth But Close Tabs at the Bar (with Tip Entry)

Some bars using high-dollar tabs or bottle service still use pre-auth but:

• Bring the iPad to the guest at the end (annoying, but secure)

• Or, enter the tip manually with customer instruction (not a super great option, but an option nonetheless)

I will say, this option works better in low-traffic or high-trust environments.

I hope this helps! Hopefully some other bar owners jump in here too. 

[ncardenny]

I believe that you actually are able to close out on a separate POS than the one that the card was pre-authorized on? I did this yesterday no problem. 

So, in theory, we could pre-authorize and close out on the terminal IF we used the terminals as mobile POS devices, however, we use the terminals as customer displays, so the iPad is used to ring things up, and then we send the transaction to the terminal to close customers out. This keeps things going as we are a high volume, and large bar/venue. 

Does anyone know if there's any way to continue to use the terminals as customer displays for pre-auth transactions as well as standard transactions?