|Process, capture and cancel an authorization|
This article covers the following:
Authorizations generate a pending transaction on the card holder's account. They generally expire within 1-10 business days but may appear on their account much longer, depending on the card issuing bank's specifications.
IMPORTANT: Any authorizations over 10 days old are considered expired and will need to be re-authorized to ensure proper funding.
NOTE: If you capture the authorization as a sale and void the transaction, the authorization will still remain on the card holders bank account.
You will need to submit the following information to process a payment:
When finished, you will need to capture the authorization(s) to complete the process and receive the funds for the transaction. See the steps below in Capturing an authorization.
When finished, you will need to capture the authorization(s) to complete the process and receive the funds for the transaction. See the steps below in Detailed instructions for capturing a voice authorization.
For Authorizations created outside of QuickBooks
For Authorizations created within QuickBooks
The transaction will decline if the authorization has expired; in that case try to run the card normally without the authorization check box to run a new authorization/capture.
What is an Authorization?
Authorization holds (also called card authorizations, pre-authorizations, or voice authorizations) are used to set aside a monetary amount on a credit card account. This is done for several different reasons, including:
What do I need in order to capture (or complete processing on) a voice authorization?
You will need to record the following information until you are able to successfully capture the authorization:
Is there a charge for a voice authorization?
Yes. Similar to an electronic authorization, a fee is charged for verbal authorization from the processor or card issuing bank. This may appear as a ASSIST SERV fee on our statement.
Are there other reasons I might need to call for authorization?
Yes. Some card issuing banks require a "referral" authorization in order to process certain cards for specific business types or dollar amounts. The process for obtaining this authorization is the same as the voice authorization detailed here.
How long does an authorization remain valid and active?
This depends on the policy of the bank that issued the card that was authorized. Some banks cancel incomplete authorizations after 5 business days, others allow them for up to 30 days. For that reason, it's important to capture the authorization as soon as the issue preventing electronic authorization has been resolved. Once a bank has cancelled a pending authorization, a new authorization must be made.
What do I do if my voice authorization has expired?
If an authorization expires, it is no longer valid. The card will need to be charged in order to authorize it again. There is no guarantee that the cardholder account will have the funds available at the time it is charge. If you receive a decline message, work with the cardholder to accept another form of payment.
What if the voice authorization is declined?
That means that the cardholder's issuing bank is unwilling to authorize the charge. This can happen for a number of reasons, and may be due to non-sufficient funds available or other restrictions. If this occurs, ask the customer for another form of payment.
Does a credit card authorization guarantee the sale won’t be disputed or isn’t fraud?
An authorization code does not guarantee that a sale will not be disputed later. An authorization code simply confirms that the amount of credit requested for a transaction is available at the time of the sale. An authorization code does not protect you in the event of a dispute (chargeback) regarding unauthorized or fraudulent transactions or disputes involving the quality or delivery of good and/or services.
How many days does a credit card authorization hold remain valid?
The card issuing bank determines the number of days that an authorization may be held. This may range from 7 days to 30 days, depending on the policy of the bank that issued the card. After this deadline, the authorization is canceled, and the amount is returned to the available balance on the account. Once this has occurred, a new authorization is required in order to capture funds.