Configure and Use Card Pre-Authorization
Last updated: Jan 29, 2026, 2:58 PM
| Toast has implemented a change for all customers, where guests’ cards with smart chips (i.e. Europay/Mastercard/Visa [EMV]) will need to be dipped or tapped for running bar tabs instead of swiping magnetic strips.
To save time, we recommend dipping instead of tapping when initiating a bar tab. Dipping will automatically populate the cardholder’s name as the tab name. However, tapping will not, due to limitations set by the card networks. If you choose to tap, the tab name will need to be manually updated to avoid confusion or potential disputes.
Turn EMV on for all terminals to ensure that this dip/tap functionality will be automatically accepted on all running bar tabs once the functionality is available. Setup takes 30 seconds with these step-by-step instructions: EMV Payments FAQ. Your staff will be informed on their displays, but be sure to let them know of this change in advance.
Dip/tap tabs are not yet available for dual reader setups (including some guest-facing displays). Until that functionality is added, you will still need to pre- authorize on your Magnetic Stripe Readers (MSR) as a swipe when using a dual reader setup. |
For frequently asked questions about pre-authorization, refer to the article Card Pre-Authorization FAQ.
To learn more about how Toast defines pre-authorization, how it relates to your POS system, and how it benefits bars and nightclubs, check out our Tech Tips blog post here.
Benefits of Pre-Authorization
| Pre-Authorization is not currently available in Canada, Ireland and the UK. |
- With pre-authorization, the card information is saved so that card doesn't have to be present to close a check that has been pre-authorized. The pre-authorized card will be available as a form of payment labeled Saved CC on the payment screen.
- Pre-authorizing cards start a tab for the cardholder, allowing tabs to be looked up by a cardholder’s name or by re-swiping their card.
- A check with a pre-authorized (Saved CC) can be closed without taking the card at the end of the transaction.
Set Up Pre-Authorization
Turning on pre-authorization takes a few simple steps:
- In , navigate to Payments > Payment methods > Payment options.
- Scroll to the Credit section. Select Yes to Enable Credit Card Pre-Authorization. This allows pre-authorization to be turned on for any of your Toast terminals/handhelds.
- Set the Minimum Pre-Authorization Amount. This is the amount that gets pre-authorized when the check’s total is less than this minimum or does not contain any items. The amount must be greater than $.01. This is a global setting that cannot be changed for individual devices.
- Note: If a guest has enough funds for the pre-authorization, but does not have enough funds to complete the transaction, the order will be declined at close-out. You can reduce the chance of this happening by raising your minimum pre-authorization amount. If a guest has insufficient funds for the preauthorization itself, then the order should be declined outright.
- Enable pre-authorization on your Toast terminals. This means that all cards swiped on the order screen while in Quick Order or Table Service modes will be pre-authorized.
Taking a card directly on the Order Screen will result in the following:
- The payment card will be pre-authorized as a valid form of payment and will ensure that sufficient funds are available to cover the pre-authorized amount.
- The card will be securely kept in Toast to be used as a form of payment when closing the check from the payment screen.
- A tab will be created using the name and payment card information of the cardholder.
- From the main menu on the POS, navigate to Setup > Device Setup.
- Scroll to Payment Processing. For the Credit Card Pre-Authorization setting, choose Yes.
When using Table Service and Quick Order mode, accepting a card on the order screen with pre-authorization turned off will take the card as the form of payment, and the card will be charged. Cards can only be pre-authorized by acceptance on the order screen. Acceptance of the payment screen will charge the card as the form of payment.
Use a Pre-Authorized Card for Payment
Pre-authorization occurs directly on the order screen by taking a card on an order with or without items/balance due. Cards with smart chips will need to be dipped or tapped on EMV-enabled readers; cards without them can be swiped. We recommend dipping over tapping smart chip cards to avoid manual name entry and speed up the tab process. Once a card is taken, an indicator highlighted in green labeled Pre-authorized will appear on the check. If a check doesn't contain the Pre-authorized indicator, it means that the check does not contain a saved CC that has been pre-authorized. The example below is from a Toast Go® 2.
The banner will not show if the balance of the check is $0 and the check is in Paid or Closed status.
If a card is fraudulent, expired, has insufficient funds, or the account has been canceled or closed, you'll see an error message pop-up that says "Pre-Authorization Failure. Unable to pre-authorize this card. Please try another card."
On the payment screen, a check with a pre-authorized card will have a button labeled . Just like any other form of payment, this button is used to close out the check using the pre-authorized card. The card does not need to be present since the payment card information has been saved from being used on this check.
