Edit the default preauthorization amount

Isabella Gumm Updated by Isabella Gumm

When a customer swipes their credit card, their payment method is preauthorized before Byte proceeds with unlocking the door. This protects Byte operators from inactive cards opening the store. This preauthorization places a temporary hold on the card.

Customers will see the following once they swipe/insert/tap their card:

Each time the customer swipes/taps their card to unlock the store, a preauthorization will be held on their card. Once the transaction processes, the preauthorization hold is released and the customer is charged.

The preauthorization will fall off immediately upon the transaction processing or within 7 business days if nothing was purchased (exact timing depends on the bank).

If a customer says they were charged even though they did not purchase anything or open the door of a Byte store, they are seeing the preauthorization hold on their statement. Assure the customer that the authorization hold is not a charge and will drop off within 7 business days.

Default preauthorization amount

If your store has an older Magstripe credit card reader (swipe only), the preauthorization amount is set to $1.00 and cannot be adjusted.

If your store is using the latest EMV / Tap to Pay card reader, the preauthorization amount defaults to $15.00. This amount can be customized by reaching out to Byte Support.

Edit the preauthorization amount

$1 or $15 may not be the correct amount for your store, depending on the value of the products you are selling. Credit card processors recommend a preauthorization amount equal to the maximum order value you expect to receive. Why is this the case? Some banks will automatically issue a chargeback on orders that greatly exceed the preauthorization hold.

In addition, if a customer is shopping with a debit card and removes more products than the balance in their account, Byte will be unable to process the transaction and collect payment. This would result in a declined transaction.

Update the preauthorization amount for your store:

  1. Click on the Stores tab
  2. Click on the store you wish to update
  3. Click on the Financial tab
  4. Click on the Edit icon
  1. Enter the "Preauthorization Amount" (minimum of $1.00)
  2. Click Save

The update to the preauthorization amount will go into effect when the store next checks in with the backend. In rare occurrences this can take until midnight when each store performs their mandatory nightly update.

If you are operating an older Byte store with a Magstripe card reader (swipe only), you might consider upgrading to the latest card reader. Reach out to support@bytetechnology.co for more information.

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How to adjust a transaction or process a refund