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How to use Pre-authorisation on your Teya card machine

Updated 

1 month ago

Do you have a Teya card machine? Would you like to know how to use the Pre-authorisation feature? We’ll guide you through how to use it and answer any questions you may have.

First thing’s first, let’s cover what Pre-authorisation is. Pre-authorisation lets you hold a certain amount of funds on a customer’s payment card that can be captured at a later date. The funds will be held until you complete (capture) or cancel (void) the transaction, or until the hold expires.

Not only does Pre-authorisation let you reserve funds for a specific transaction, but it also lets you check if a customer’s payment card is valid and has the balance needed.

Pre-authorisation eligibility

As a Teya customer, you can only pre-authorise payments if your business is one of the following:

  • Hotels: you can pre-authorise guests’ card payments for incidental charges like room service, minibar items, or damages, ensuring a seamless checkout process and reducing the risk of guests racking up a bill they leave without paying for.

  • Car rental services: you can pre-authorise payments to cover potential damages or late fees and guarantee you'll receive the money when it’s due.

  • Equipment rental services: you can pre-authorise payments to cover potential damages or late fees and guarantee you’ll receive the money when it’s due.

These businesses may take pre-authorised payments as collateral for reservations. If you own a business outside of these eligibility criteria, please get in touch via chat, email, or call us on +44 122 644 4099.

How do I set up Pre-authorisation on my Teya card machine?

By default, Pre-authorisation is turned off on all Teya card machines. To turn it on, please follow the step-by-step instructions below.

  1. Go to the main menu on your card machine.

  2. Tap Manage features.

  3. Enter your Manager PIN.

  4. Scroll down to find Pre-authorisation.

  5. Tap the toggle next to Pre-authorisation to turn it on.

    1. When Pre-authorisation is turned on, the toggle button will appear black with a white circle to the right. When it is turned off, the toggle button will appear white with a black circle to the left.

How do I create a new Pre-authorisation payment on my Teya card machine?

To pre-authorise a new payment on your Teya card machine, please follow the step-by-step instructions below.

If this is your first time creating a new Pre-authorisation, make sure the feature is turned on by following the instructions above.

  1. Go to the main menu on your card machine.

  2. Tap Pre-authorisation, which will appear in the main menu when it’s turned on.

  3. Tap the New Pre-authorisation button.

  4. Enter the Pre-authorisation amount.

  5. Tap Next to process the transaction.

  6. The customer must then tap, insert, or swipe their card for the payment to be pre-authorised.

How do I capture a Pre-authorisation payment on my Teya card machine?

To capture a pre-authorised payment on your Teya card machine, please follow the step-by-step instructions below.

  1. Go to the main menu on your card machine.

  2. Tap Pre-authorisation.

  3. Search for the payment you want to capture. To find the right one, either use the filter or ask the customer to tap their card against your card machine to pull up their pre-authorised payment(s).

  4. Select the pre-authorised payment you want to capture.

  5. Tap Capture payment.

  6. Enter your Manager PIN to confirm.

How do I void a Pre-authorisation payment on my Teya card machine?

To void a pre-authorised payment on your Teya card machine, please follow the step-by-step instructions below. Please note: voiding a pre-authorised payment is only possible when it’s done on the same day that the pre-authorised payment is processed.

  1. Go to the main menu on your card machine.

  2. Tap Pre-authorisation.

  3. Search for the transaction you want to void. To find the right one, either use the filter or ask the customer to tap their card against your card machine to pull up their pre-authorised payment(s).

  4. Select the pre-authorised payment you want to void.

  5. Tap Void payment.

How do I refund a Pre-authorisation payment on my Teya card machine?

To refund a pre-authorised payment on your Teya card machine, please follow the step-by-step instructions below. Please note: refunding a pre-authorised payment is only possible when the money has already been captured and there is no more on hold.

  1. Go to the main menu on your card machine.

  2. Tap Transactions and refunds.

  3. Search for the transaction you want to refund. To find the right one, either use the filter or ask the customer to tap their card against your card machine to pull up their pre-authorised payment(s).

  4. Select the pre-authorised payment you want to refund.

  5. Tap Issue refund.

How do I check the status of a Pre-authorisation payment on my Teya card machine?

To check the status of a pre-authorised payment on your Teya card machine, please follow the step-by-step instructions below.

If the pre-authorised payment is still on hold:

  1. Go to the main menu on your card machine.

  2. Tap Pre-authorisation.

  3. Search for the transaction you want to check the status of. To find the right one, either use the filter or ask the customer to tap their card against your card machine to pull up their pre-authorised payment(s).

  4. Select the pre-authorised payment you would like to check the status of.

  5. If Payment authorised appears, that means the pre-authorised payment has been successfully processed and the amount is on hold.

If the pre-authorised payment has been captured, voided, refunded, or is expired:

  1. Go to the main menu on your card machine.

  2. Tap Transactions and refunds.

  3. Search for the transaction you want to check the status of. To find the right one, either use the filter or ask the customer to tap their card against your card machine to pull up their pre-authorised payment(s).

  4. Select the pre-authorised payment you would like to check the status of.

  5. If Payment expired appears, this means the pre-authorised payment is expired and can no longer be captured.

  6. If Payment void appears, this means the pre-authorised payment is void and the money has been sent back to the cardholder’s bank account.

  7. If Payment approved appears, this means the pre-authorised payment has been successfully captured and will be settled into your registered bank account.

How do I print a Pre-authorisation receipt on my Teya card machine?

To print a receipt of a pre-authorised payment on your Teya card machine, please follow the step-by-step instructions below.

  1. Go to the main menu on your card machine.

  2. Tap Pre-authorisation, which will appear in the main menu when it’s turned on.

  3. Tap the New Pre-authorisation button.

  4. Enter the Pre-authorisation amount.

  5. Tap Next to process the transaction.

  6. The customer must then tap, insert, or swipe their card for the payment to be pre-authorised.

  7. Select either Customer receipt or Merchant receipt depending on which you need.

  8. Your card machine will now print the relevant receipt.

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Pre-authorisation FAQ's

Pre-authorisation is a payment process that lets you hold a certain amount of funds on a customer’s payment card that can be captured at a later date. The funds will be held until you complete (capture) or cancel (void) the transaction, or until the hold expires. It’s commonly used in situations where the final transaction amount is uncertain.

Not all businesses are eligible for Pre-authorisation. Eligible businesses include hotels, car rental services, and equipment rental services as they often need to verify funds or hold a certain amount as collateral before the transaction is completed.

No, there aren’t any costs associated with Pre-authorisation. The charges are the same as they would be for any other transaction.

Yes, in some cases a pre-authorised payment can be cancelled. You may choose to cancel a Pre-authorisation for several reasons, for example if the final amount differs significantly from the initial authorised amount.

The money will be transferred when the final transaction takes place. After you have provided the goods or services, and the transaction amount is determined, you need to initiate the ‘capture’ process. Once the Pre-authorisation has been captured, the money will be transferred to your registered bank account the next business day.

You must complete the transaction before the Pre-authorisation expires in order to capture the money. If the expiration period passes without a final transaction, the Pre-authorisation hold is automatically lifted, and the money will become available to the cardholder again.

The duration of a Pre-authorisation hold varies and is determined by your business type, card scheme, and card type. Typically, it ranges from one week to 30 days. After this period, the Pre-authorisation hold is automatically lifted, and the money will become available to the cardholder again.

The expiry date is visible on each pre-authorised payment on your card machine. You can find it in ‘Transaction details’.

Although the exact duration varies depending on the factors outlined above, this cannot be extended past the expiry date. After the hold reaches its final date, it will expire, and a new Pre-authorisation request must be made to eventually capture the money.

Pre-authorisations cannot be captured with an amount greater than the initial amount. They can only be captured with the same amount initially held or any amount less than that.

The two card schemes accepted for Pre-authorisation in Teya Payments are Mastercard and Visa.

There is no minimum amount that can be held or pre-authorised.

Yes, you should let your customers know how the Pre-authorisation process works to avoid any confusion and maintain transparency.

Capturing payments is a process that’s specific to Pre-authorisation. It’s a way of instructing an acquiring bank like Teya to charge the requested Pre-authorisation amount either in full or partially. While the authorisation itself ensures there’s enough money in a customer’s account and that it’s valid, capturing the payment is when the money is finally transferred from a customer’s account to your account and the payment is completed.

A pre-payment is when a customer is charged in advance of purchasing a product or using a service, whereas a Pre-authorisation is simply a hold of money on their payment card.

Protection – Pre-authorisation offers you a layer of protection, e.g. by acting as collateral in case of any damages or avoiding a no-show when it comes to paying for incidental charges like room service or minibar usage in hotels. It also means you can make sure a customer’s payment card is valid and has the balance needed.

Convenience – It replaces the need for inconvenient cash deposits in similar situations.

Prevents unnecessary fees – Pre-authorisation can prevent unnecessary payment processing fees that occur when charging a customer and then refunding them. In those cases, processing fees occur for the initial payment and the refund. If you charged a customer a deposit in case of damages and there were none, those processing fees would have been for nothing. Instead, Pre-authorisation means nobody is charged anything until the payment needs to be captured.

This also works in the customer’s favour, because cancelling a Pre-authorisation returns their money immediately, whereas refunding money can take several days.

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Teya Services Ltd. is registered in England and Wales with the company number 12271069 and the registered address Third Floor, 20 Old Bailey, London, EC4M 7AN, United Kingdom. Teya Solutions Ltd. is authorised by the Financial Conduct Authority under the E-Money Regulations 2011 [Reference no. 978181] for the provision of payment services and issuing of electronic money.