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Bar Tab Steps

It is important to understand the difference between pre-authorization (auth), incremental-auth, tips, and final payment settlement.

Pre-Authorization

A pre-authorization checks whether a customer's payment method has sufficient funds available to complete a transaction before the transaction is actually processed. It is most commonly used in situations where the final transaction amount is uncertain or may change (such as a restaurant or bar tab), or where there is a risk of fraud or chargebacks.

  • The payment processor sends a request to the card-issuing bank to reserve a certain amount of the customer's available credit or funds to cover the cost of the transaction. The reserved amount is temporarily held until the transaction is completed.

  • Once the transaction is completed, the final transaction amount is sent to the payment processor, which either confirms the pre-authorization and processes the payment, or cancels the pre-authorization and releases the reserved funds back to the customer's account.

Incremental-Authorization

With incremental-authorization, the payment processor authorizes the initial transaction amount and then periodically authorizes additional amounts as needed to cover additional charges or fees. This is most commonly used in situations where the final transaction amount is uncertain or may change over time, such as a hotel reservation or a bar tab. Note: The same Genius API endpoint is used for pre-auth and incremental-auth.

  • This ensures that the customer has sufficient funds, reducing the risk of declined transactions or of overcharging the customer.

  • It also allows the merchant to process payments for additional charges without requiring the customer to provide their payment information again.

  • In a bar tab scenario, the initial authorization may only cover up to the specified configured order amount (example $50), and then additional authorizations may be made as more items are added that increases the order total to more than the initially authorized $50. The system may be configured to incrementally authorize every $50 added to the order total.

Note

Incremental authorization may be subject to different fees or transaction limits compared to a regular authorization. Merchants and customers should be aware of the terms and conditions of the payment processing service being used.

Finalize Payment

To finalize payment the merchant submits the final transaction amount for authorization or settlement. This amount typically includes the original authorized amount, any additional increments authorized, and any tips added by the customer.

  • The payment processor settles the payment, transferring the funds from the customer's payment account to the merchant's account.聽

  • Incremental authorization, tips, and final payment settlement work together to ensure that the merchant is paid for the goods or services provided, while also giving the customer flexibility in how they pay for additional charges and fees.

Note

Merchants and customers need to understand the terms and conditions of the payment processing service being used, including any fees or transaction limits that may apply to incremental authorizations or tips.

Tipping

When tipping is configured in 抖阴Data Management, the customer may choose to add a tip to the final transaction amount. In Genius/GPI interface this can be accomplished by using the AdjustTips method. Note: POS can also use incremental auth for tipping instead of AdjustTips method.

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