In traditional stores, this is where the retailer would confirm the customer has funds to pay for their purchases. In a Zippin-powered store, there is no checkout before the customer exists. To protect against retailer inventory loss, a pre-authorization step takes place at entry. Properly communicating this to customers is important for increasing customer count and overall sales.
Pre-authorization is a step at entry when a customer enters their payment method. It is a temporary hold. It ensures that a particular dollar amount is available on the card.
If the temporary hold fails, the customer will not be able to enter the store. A temporary hold is similar to a "green light" or "thumbs up" from the bank to guarantee the dollar amount is available to spend during the shopping trip.
After the actual cart amount is known and clears the bank, this temporary hold is removed. It is removed after the actual amount for their purchases clears.
TIMING
Generally speaking, 24 hours. It's dependent on the issuing bank for the credit card (Chase, Bank of America, etc.) They charge the card for the amount due and remove the temporary hold. We’ve noticed not all banks are as speedy as 24 hours.
ADDITIONAL INFORMATION
- A subsequent temporary hold is placed on the card each time the card is used for entry into the store. The same process as explained above occurs for each shopping trip.
- The temporary hold amount is selected by the retailer
| In the scenario where one person is scanning for a group, and the gate closes in before the entire group enters - it is highly advised to inform the paying customer they will see a temporary hold for each time they swiped/tapped/etc. Each pre-auth will be adjusted as explained above. |
CHANGING THE PRE-AUTHORIZATION
The retailer can change the pre-authorization amount at their discretion (with the exception of campus cards). To ensure a good customer experience, signage and crew attendants must be updated and informed, as applicable.
A temporary hold amount closer to the average basket size is recommended. A higher hold amount ensures lower revenue loss, however, shoppers do not like large holds on their credit or bank accounts.
1. Log into Store dashboard
2. Select configurations menu
3. Select the pencil/ edit icon
4. Enter the new amount, and select submit.
The change is immediate.
| Changes to the pre-authorization amount for campus cards must be arranged by contacting Zippin Retailer Support. |