Why are some of my customers seeing a $0 charge?

[newhallywood]

When adding a credit card on file to a customer entry, my customers are seeing a $0 charge on their card. One of my customers wrote me, alarmed that there was a charge at all, when we told them it was just to hold a reservation, nothing was purchased, no charge was made. We are a small business and don't want to get the reputation of being careless or inexperienced with our credit card sales! Why would a $0 charge be initiated? Is it testing the credit card for validity? Thank you.

[ashc]

Hi @newhallywood!

When you add a card on file, an authorization charge of $0 has to be sent to the bank in order for us to run it automatically in the future.

It's basically us getting connection with their bank if that makes sense!

[newhallywood]

Yes, that makes sense, although in this case we are only using the card to hold a reservation. It may or may not be charged. It did startle our guest, and his credit card company actually called him about the "mystery charge." Perhaps we will not save the credit card information in the Square customer entry if this is working as designed - we will keep the information separate so no activity is started on the card unless an actual charge is made. Or, perhaps, can we record the credit card as a comment in the customer record?

[ashc]

@newhallywood Yeah once you add it on file, it will always do the $0 charge as the authorization charge. 

Another option you have would be to have the customer fill out a Credit Card Authorization Form and only run their information if needed. 

[newhallywood]

Thank you, I believe this is a perfect solution!