Can you pre authorize on Square? This is a common question among businesses and individuals who are looking to streamline their payment processes. Pre-authorization is a crucial feature that allows you to hold funds temporarily before a transaction is completed. In this article, we will explore how pre-authorization works on Square and its benefits for businesses.
Pre-authorization on Square is a powerful tool that enables you to ensure that funds are available for a transaction before processing it. This feature is particularly useful for businesses that offer services or products that require payment in advance or for those who want to secure a reservation. By pre-authorizing a payment, you can hold the funds temporarily, ensuring that the customer has the necessary funds to complete the transaction.
To pre-authorize a payment on Square, you need to follow these simple steps:
1. Log in to your Square account.
2. Navigate to the “Sales” tab.
3. Click on “New Sale” to start a new transaction.
4. Enter the customer’s payment information.
5. Select the “Pre-Authorize” option instead of “Charge” or “Save.”
6. Enter the amount you want to pre-authorize.
7. Click “Pre-Authorize” to hold the funds temporarily.
Once the pre-authorization is complete, the funds will be held for a specified period, usually 7 days. During this time, you can process the transaction by completing the sale, voiding the pre-authorization, or canceling the pre-authorization if the customer decides not to proceed with the purchase.
The benefits of pre-authorization on Square are numerous:
1. Security: Pre-authorization helps protect your business by ensuring that the customer has the necessary funds to complete the transaction.
2. Flexibility: You can choose to hold funds for a specific period, allowing you to manage your cash flow effectively.
3. Customer Satisfaction: By offering pre-authorization, you provide a convenient and secure payment option for your customers.
4. Streamlined Process: Pre-authorization simplifies the payment process, making it easier for both you and your customers.
However, it’s important to note that pre-authorization does have some limitations. For instance, the funds are not immediately deducted from the customer’s account, and the pre-authorization can be canceled by the customer or the issuing bank at any time. Additionally, pre-authorization does not guarantee that the transaction will be completed, as the customer may choose not to proceed with the purchase.
In conclusion, pre-authorization on Square is a valuable feature that can enhance the security and efficiency of your payment processes. By understanding how to use this feature effectively, you can provide a better experience for your customers while protecting your business interests. So, the answer to the question “Can you pre authorize on Square?” is a resounding yes, and it’s a feature that can be a game-changer for your business.
