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Feature Request: Pre-authorization, refundable deposits, and open bar tab support

Feature Request: Pre-authorization, refundable deposits, and open bar tab support

The title of this post has been edited from the original: How can I pre authorize a card?

 

We run a business where our customers "rent" an item. Before they rent they have to put their credit card on file for a $250 deposit.  If they do not return the item their card gets charged the $250.

 

Lately we've had a lot of this item walking away and cards being declined.

 

Is there a way to check to make sure the funds/card is good before we accept that card for the deposit? And avoid when we go to charge the card the $250 deposit and the card getting declined?

 

Thanks

3 Verified Answers
Verified Answer

Re: How to start a tab and give back customer card

Hey @1chuck2chuck-

 

Thanks for posting in the Seller Community!

 

While we do have an open tickets feature that will allow you to create a sort of "tab" for your customers, if you use a customer’s credit card to create a new open ticket, the card will not be charged at that time and their payment information will not be stored within the app. Right now Square does not offer the ability to keep card information stored on an open ticket. This is a feature we may make available in the future, however we do not have a timeline to share at the moment. Thanks for resurfacing this feature request. 

 

One of our Super Sellers, @ryanwanner provided a workaround suggestion in this thread that may be useful. 

Verified Answer

Re: Hardware of Register and Square Stand

Unfortunately Square doesn't allow for holding a tab open with credit cards at this point.

 

You can run open tickets and create a tab, but unless you physically hold onto the card there's no way currently.

 

This is a heavily requested feature here on the community, though, so hopefully.......?

 

The only way around it currently is Square's Card on File feature: you create a customer, enter their card info, then assign it to the ticket. It's cumbersome at best in a busy bar environment, though.

 

Verified Answer

Re: Checking to make sure card is good.

@ORSLLC Thanks for the question!

 

@mremele Thanks for your help! You're on the right track with this one. 👍🏻 

 

Currently, Square Point of Sale doesn’t offer the ability to pre-authorize cards. While this feature isn't something that's available right now, I can definitely see how it would be helpful. I would caution you to avoid using refunds a workaround, as it can tie up your customer's money for up to 7 days (depending on their bank). A better option may be to charge a percentage up front as a down payment, and then subtract this amount from their final bill. 

 

One thing to note is that the ability to pre-authorize is something that you can do if you use Square Appointments. If a business is set up to accept pre-payments for online bookings and also to confirm client-booked appointments, Square will authorize the card at the time of booking, and keep a hold on that amount for 3 days. When you go in to confirm the appointment, we'll bill the card. I recognize that using our Appointments software may not work well for all types of businesses (like equipment rental businesses), but it is an option for those offering service-based business like salons, etc. Learn more about scheduling and setting up appointments

587 Replies

I don't believe Square has a way to simply verify an account. However, you could charge the $250 then immediately refund it (or refund when the item is returned).  When you refund an item, Square returns all the funds back to the customer and to you. It doesn't cost anything.

Ummm, why was my post moved here?! It has absolutely NOTHING to do with recurring charges the OP asked about. My question had to do with putting a hold on a certain amount of funds on a persons credit card. If the person breaks the appointment then the amount of the hold would be charged to the card. If the person followed through with the appointment, then the hold would be released and the full amount would be charged via swiping the card, thereby saving the extra fee of manually entered info vs swipe info.

Can I use square for a deposit on a reservation ?

Square

So sorry for the confusion. We don't currently offer this functionality in our system, but it definitely sounds like it would be useful for your business. Thanks so much for the suggestion. We'll be sure to pass it along to our Product Liaison Team. 

Square

@ORSLLC Thanks for the question!

 

@mremele Thanks for your help! You're on the right track with this one. 👍🏻 

 

Currently, Square Point of Sale doesn’t offer the ability to pre-authorize cards. While this feature isn't something that's available right now, I can definitely see how it would be helpful. I would caution you to avoid using refunds a workaround, as it can tie up your customer's money for up to 7 days (depending on their bank). A better option may be to charge a percentage up front as a down payment, and then subtract this amount from their final bill. 

 

One thing to note is that the ability to pre-authorize is something that you can do if you use Square Appointments. If a business is set up to accept pre-payments for online bookings and also to confirm client-booked appointments, Square will authorize the card at the time of booking, and keep a hold on that amount for 3 days. When you go in to confirm the appointment, we'll bill the card. I recognize that using our Appointments software may not work well for all types of businesses (like equipment rental businesses), but it is an option for those offering service-based business like salons, etc. Learn more about scheduling and setting up appointments

Alumni

Right now we don't support the collection of security deposits. But we know it'd be helpful for many of our sellers, so it's definitely on our radar.

We will be using Square for a POS at trade shows to sell on-site available products.  Is it possible to capture a transaction but delay charging a card, in the case where the show inventory is depleted and we want to ship the product from the home office when the show is over?

 

We'd like to capture all of the customer and credit card information, and then charge the card when the order is released to ship when the show is over... or when the product is back in stock.

 

Thanks,

 

Glenn

Square

Hey Glenn - great question! At the moment, Square does not have the ability to collect a security deposit or pre authorize a card but there are a few things that you can do to make sure your customer gets their item and you get your funds! 

 

You are able to send your customers a Square Invoice, which will allow you to track your customer's orders that need to be fulfilled after your show is over, but not charge your customer immediately. You are also able to process a refund, if your customer purchases at your show and you are unable to fulfill that order right away. 

I run an equipment rental business. I would like to preauthorize a deposit on my customers credit card, so incase they do not return the rental, this amount can be charged. How do I set this up? I cannot find any answers online.

We plan to rent electric-assist bicycles from a remote location and need to pre-authorize the card for $X amount, for security reasons. Apparently Square doesn't have this capability. Has anyone come up with a viable work-around or option that still lets us use the Square Station?