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Mar 6, 2025

Pre-Authorizations 

This article will discuss contract pre-authorization. Some rental stores prefer capturing pre-authorizations instead of full credit card deposits and performing a post-authorization at rental return. This feature is available in Point of Rental Expert and Elite v2017 and later, with the Cayan gateway.


Prerequisites

  1. To perform a pre-auth on a contract, it must be the first payment.
     
  2. The next credit card payment must be a post-auth, although you can bypass it when prompted to perform a full credit card sale. However, you will not be allowed to perform the post-auth again.
      
  3. If it is determined a full credit card sale is necessary, and you want to avoid nullifying the ability to perform the post-auth, then you should create a separate contract and pay it with the credit card.


Topics in this article include


 

Use Cases

  • Rental stores require a large pre-auth ($30k, for example) at contract opening. Then, upon rental return, a lower post-auth is captured ($10k). The larger pre-auth ensures the customer has enough funds to cover extra charges in case of damages or overtime. 

  • Rental stores perform a pre-auth equal to the rental deposit. Upon rental return, the full rental amount is used for the post-auth.

  • This case has its vulnerabilities. Merchants run the risk of their customers not having enough funds to capture the post-auth or canceling the card. 

Things to Know

 

  • Pre-auths are not sales, they are holds; post-auths are captured sales.

  • You can post-auth a larger or smaller amount than the pre-auth.

  • Pre-auths do not store a token that is usable on other contracts.

  • Pre-auth option is only in the deposit amount field.

  • Post-auths are through the rental/sale amount field, by putting the desired post-auth amount in and then selecting credit card as the payment option. Point of Rental will automatically prompt the counter person, asking if they would like to perform a post-auth against the pre-auth.

  • If post-auths are unsuccessful, a credit card sale is performed immediately without prompting the counter person.

  • Pre-auths may last as long as 30 days, depending on the issuing bank. If the pre-auth expires, a full credit card sale will be captured upon the post-auth attempt. The end result is equivalent. 

  • Pre-auths do not impact credit card inquire, contract’s ‘Amount Due’, or the GL; post auths do because they are actual credit card sales.

  • Pre-auths are for credit transactions, not debit transactions. If you perform a pre-auth and the cardholder runs their debit card as debit, entering their PIN, then the result will be a debit sale with no follow-on token for future use.

  • (For Elite versions 2025.04 and above) For non-US credit cards, Stripe supports pre-auth follow-ons for both terminal and onscreen transactions, and MITC supports follow-ons for onscreen transactions. 


                 

                Enable Pre-Authorizations

                Follow the below path:

                1. Go to the Drawer tab in Parameters. Follow the path below for your product.

                  1. Expert: Program Menu > Configuration > Store Configuration > Parameters > Drawer
                  2. Elite: Configuration Gear > App Configuration > System Configuration > Parameters > Drawer
                     
                2.  Check the box next to Allow Pre-authorization.

                 

                 

                Pre-Authorization from a Contract

                A pre-authorization (also “pre-auth” or “authorization hold”) is a temporary hold on a customer’s credit card that typically lasts around 5 days or until the post-authorization (or “settlement”) comes through.
                 

                1. To do a pre-authorization from a contract, go to the contract payment screen.  Note: When doing a pre-authorization, this should be the only transaction made now.


                2. From the deposit amount, enter the Deposit Amount.
                   
                3. Under payment type, choose CC Pre-authorization.

                    
                4. Finish the contract as normal and print the receipt if needed.

                 

                 

                Post-Authorization from a Contract

                A post-authorization, or post-auth, is a type of authorization that confirms the merchant is ready to capture payment of the existing pre-authorized transaction. When the post-auth is processed, the amount is debited from the cardholder's account. A post-auth cannot be voided.

                 

                1. Return to the contract and go to Tools > Modify.
                    
                2. Click OK to go to the Payment Screen.


                3. In the rental/sales amount, place the desired amount.

                4. Choose a credit card as the payment option.


                5. Press OK and finish changes.

                6. When the payment interface screen comes up, click on either Manual Entry or Customer Swipe. Note: Customer Swipe is only enabled if you have a physical terminal at your location and assigned to your user profile in Point of Rental.


                7. A message will display asking if you want to use the pre-authorization on file. Click Yes.

                   
                8. An approval message will appear showing completion.

                 


                 

                Verify in Payment History

                If you look at the contract's payment history, it will show two lines. The top line is the pre-authorization (pre-auth) as the bottom line shows the post-authorization (post-auth).

                 

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