Preauthorized Cards Decline When Closing

If your guests' preauthorized credit or debit cards are frequently being declined when closing a transaction, this is because their bill has increased beyond the original preauthorized amount, and the card cannot cover the higher amount.

In this Article:

• Current Incremental Authorization State
• Add Items to Check Before Accepting Card (Recommended)
• Increase Default Preauthorization Amount (Secondary Option)

Current Incremental Authorization State

The current state of incremental authorization for most Toast customers works as follows: Toast authorizes twice: once at open (for preset amount or first item value), and once at close (for final amount).

The system cannot currently send multiple increments as the tab grows. If the final amount is greater than the initial preauthorization, and the guest's card lacks funds, the charge will decline. You cannot capture the initial preauthorization amount if the final increment fails.

Add Items to Check Before Accepting Card (Recommended) to Optimize Authorization

To rectify this issue, we recommend adding items to the check before you accept the card.

Have your staff take the initial order before accepting the card for the tab. When the card is accepted, the preauthorization will be for the actual item amount rather than the default preset amount. This will provide you better initial protection without detracting from your guest's experience.

This may be a better system for you if:

• You have predictable high-initial orders (bottle service, etc.).
• Your staff workflow can accommodate this.
• You're experiencing walkouts on moderate tabs ($50-150).

However, note the following:

• This won't protect you against additional items added later.
• It requires a workflow change for your staff.
• May not be feasible for your particular service model.

Increase Default Preauthorization Amount (Secondary Option)

If you prefer another method, we suggest increasing the default preauthorization amount. Set your default preauthorization amount higher (e.g., $50, $100, or more). If the preauthorization amount exceeds the guest's final tab, the system will perform a partial reversal. This provides you better protection for walkouts within that amount. Be sure to use sparingly, however, as this can cause other issues (see below).

This may be a better system for you if:

• You have consistent tab ranges (e.g., most tabs $50-80).
• You want to prioritize walkout protection over guest experience.

However, note the following:

• This may create a poor guest experience, as they will see large holds that may exceed their actual spending, and/or increase guest complaints about "excessive holds."
• Guests with lower balances may have the initial preauthorization decline.
• It does not solve for tabs exceeding the preauthorization amount.

We do NOT recommend this if:

• You have highly variable tab amounts.
• You are already dealing with guest complaints about holds.
• Your guests' tabs frequently exceed realistic preauthorization amounts (e.g., $500+ tabs).