When a pre-authorization is initiated on a Magtek payment device, a temporary authorization is used to verify that the card is valid and can accept an authorization.
The pre-authorization uses a small nominal amount to minimize the amount temporarily held on the cardholder’s account while the authorization is pending. This amount is determined by the payment processor and cannot be configured.
Nominal authorization amounts
| Processor | Nominal authorization amount |
|---|---|
| TSYS | $1.00 |
| Fiserv | $0.10 |
| Vantiv | $0.10 |
Note: The nominal authorization is temporary and is not captured. It is automatically released by the issuing bank. The release time varies by bank and may take up to 5–7 days.
How the pre-authorization process works
- The user selects the pre-authorization option on the payment device.
- A nominal authorization is sent to the card issuer to verify that the card is valid.
- After the authorization is approved, the check remains open. Items and a tip can still be added.
- When payment is completed, Tabit captures the final transaction amount, including any applicable tip, and initiates final payment processing.
What cardholders may see
After a pre-authorization is performed, the cardholder may see the nominal authorization as a pending transaction on their bank or credit card statement.
When payment is completed, an additional authorization may appear for the remaining check amount. Depending on the issuing bank, the pending authorizations may appear separately or be combined into a single pending amount. The combined pending authorization amount will not exceed the final transaction total.
The tip may not appear in the pending authorization amount. The final transaction amount, including any applicable tip, appears after the transaction posts to the cardholder’s account.
If the issuing bank combines the authorizations, they may clear together after payment is completed and the batch settles on the processor side. If the original nominal authorization remains separate, it may continue to appear as pending for up to 5–7 days before the issuing bank releases it.
Example: TSYS pre-authorization
For a $25.00 check with a $5.00 tip, resulting in a $30.00 final total, the payment may appear as follows:
| Stage | Amount | What happens |
|---|---|---|
| Pre-authorization | $1.00 | A nominal authorization verifies the card. |
| Payment | $24.00 | An additional authorization brings the authorized check amount to $25.00. |
| Final transaction | $30.00 | The transaction is captured with the $5.00 tip included. |
$1.00 pending + $24.00 pending → $30.00 final transaction
Depending on the issuing bank and card type, the $1.00 and $24.00 pending authorizations may appear separately or be combined. The combined pending authorization amount will not exceed the final transaction amount. If the original $1.00 nominal authorization remains separate, it may remain pending for up to 5–7 days before the issuing bank releases it.
Incremental authorizations
Incremental authorizations are not currently supported.