Preauthorization is one of the contactless payment features that can be included in the Zaplox Mobile Guest App – Premium 3 and the Zaplox Kiosk. This feature, commonly used in hospitality, allows your hotel to put a temporary hold on a guest’s credit card to make sure that there are sufficient funds to pay for the stay.
So how does it work, here is an example
After downloading the hotel’s guest app from Zaplox on their phone, guests can start the check-in process before arriving at the hotel.
One guest can have a $1,000 credit limit and owe nothing on the card. During the mobile check-in process, the guest preauthorizes a credit card and the hotel places a $750 hold on the card. Typically, the preauthorized amount is based on the room charge and an estimate for incidentals such as beverages from the mini bar, room service or use of the WiFi.
The preauthorization reduces the credit card’s credit limit to $250 and the funds are reserved for the hotel, but the guest is not charged until checkout. The hold typically lasts for up to seven days and during this time the money is not available for the guest to use anywhere else.
Once the card has been preauthorized, the guest gets access to the mobile room key and can unlock the hotel room with his or her phone.
When the guest later checks out from your hotel, he or she can review the folio and the funds on hold are “captured”, meaning they are converted into a charge.
How Zaplox connects to the hotel’s payment platform and the PMS
The preauthorized credit card data can either be tokenized and communicated to the property management system through a tokenization software e.g., PCI Booking or the transaction can be sent directly to the hotel’s PMS connected to the hotel’s payment. Currently, Zaplox integrates Shift4/Merchant Link, Nets and DIBS while Planet (previously 3C Payments) is only for payment terminals.
The benefits of preauthorization
By putting a hold on guest funds, you reduce the risk that a guest will leave without paying for the services they used. The preauthorization places a hold on the funds and ensure that all incidentals and additional charges will be covered. Sometimes, a reservation has to be cancelled and if the guest has already paid, they can get frustrated when they have to wait for the refund. In that scenario, preauthorization offers more flexibility since there is no payment to refund, instead the hold is just canceled. In addition, preauthorization helps avoid chargebacks, unnecessary fees and refund charges, resulting in cost savings for the hotel.
Would you like to learn more Zaplox preauthorization? Contact the Zaplox Team at email@example.com or request a demo for the in-depth presentation of our solutions.