Enable and configure pre-authorisation for bar tabs
About preauthorisation for bar tabs
Pre-authorisation allows you to temporarily pre-authorise a customer’s credit card for a set amount so they can pay for their bill when closing out their tab. Pre-authorisations typically last around 36 hours, but may vary depending on the customer’s card network and issuing bank. If a card is pre-authorised through Square, customers may see 2-3 pending transactions depending on how their bank represents authorisations. Once the transaction is settled, any pre-authorisation charges will be consolidated into a single line item. This process can take up to 3-5 business days depending on the customer’s card network and issuing bank. If a customer runs into an issue with a long hold, they should reach out to their bank for additional support.
Learn how to understand bar tabs and preauthorisation for Square customers.
Before you begin
Pre-authorisation minimums range from $1.01 minimum to $250. It is not possible to set up a maximum range at this time.
When a check has been pre-authorised, there is always a chance the final payment could fail. Payment is only guaranteed if the card is in-hand when taking the final payment.
To apply the holiday and weekend surcharge, add an item to the cart first and then enable pre-authorisation.
Afterpay is not an accepted payment method for pre-authorisation.
Enable pre-authorisation
You can enable and configure a minimum pre-authorisation amount for each of your applicable locations from Square Dashboard.
Sign in to Square Dashboard and go to Settings > Device management > Service settings > Bar tabs pre-auth.
Select Pre-Authorisation > Enable Pre-Authorisation.
Set a minimum pre-authorisation amount.
Select Enable.
Pre-authorise a payment card
You can pre-authorise a card via the Checkout tab or the Orders tab on Square hardware and compatible iOS and Android devices. Square will authorise the minimum pre-authorisation amount configured in Square Dashboard or the total value of items in the cart at the time of pre-authorisation, whichever is greater.
If the pre-authorisation is successful, the cardholder’s name will be added to the bill if the bill is unnamed. If the cardholder name can’t be read, the card type and last four digits will be added as the bill name.
From the Square POS app with full service, quick service, or bar mode enabled or from the Square Restaurant POS app:
- From your point of sale app menu, tap Checkout.
- Start a tab by:
- Tap, insert, or swipe a card.
- Tap Add pre-authorisation or the preauthorisation icon, then tap, insert, or swipe the card.
- Tap Save.
Manage pre-authorisations
You can manage any pending pre-authorisations with full service, quick service, or bar mode enabled in the Square POS app or from the Square Restaurant POS app.
Complete a pre-authorised transaction
If a bill has a pre-authorisation, the pre-authorised card will be the first payment method listed during checkout. If the customer asks to pay their tab by using a split tender payment, the pre-authorised payment can only be used for one of the split payments.
You can complete a pre-authorised transaction from the Square POS app with full service, quick service, or bar mode enabled or from the Square Restaurant POS app.
From your point of sale app menu, tap Checkout.
Tap Pay > choose the top Pre-authorise [Card ####] option.