Does Square offer Pre-Authorisation?

[Chazawa]

I rent accommodation and we take a security deposit from guests on check-in and then return all or part of it maybe a week or two weeks later.

Can I take deposits from guest's credit card via Square and return it later to the same credit card.

Thanks so much!

[SQ大竹-Otake · Accepted solution]

Hi, @Chazawa, Thanks for your new post!

Currently, Square doesn’t offer the ability to pre-authorize cards. We also prohibit any businesses to take security deposits using Square.

I also would like to caution you to avoid testing a small amount of payment with customer’s credit card and use refund as a workaround. And here are the reasons:

Reason 1: The cardholder might receive a notification when the transaction is authorized even if you refund them immediately.

Reason 2: The test transaction may go through and show up the customer’s credit/debit card statement, depending on their bank or card issuer. This could cause the customer to raise an eyebrow and may become a problem.

Following is how the Credit cards payment is processed:

Authorization- This is when the transaction is verified by the credit card company. In this step, the credit card company see the customer’s credit card validity.

Capture- The transaction is captured after the validity of the card is confirmed.

Let me know if you have further inquiries!

[Chazawa]

Hi @SQ大竹-Otake,

Thank you for the information. We'll be sure to stick by Square's rules regarding credit card use.

Thx!

[SQ大竹-Otake]

@Chazawa, Thanks for your reply.

Your questions will be very helpful for other Square sellers as well so please do not hesitate to post your questions anytime!! 😁