Bar Tabs Overview in Hospitality

Description: Bar tabs in the Hospitality system allow credit card pre-authorizations for a predetermined amount. This feature is intended for use in fast-paced bars and nightclubs to allow the customer to open a tab yet retain physical possession of their card. 

• How to Enable Bar Tabs
• Additional Information

Note: This functionality prevents the use of expired or canceled card “walkouts” on open tabs. The use of bar tabs means the account holder will have an authorization placed against that amount by their bank.

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Note: You cannot modify the amount allowed on bar tabs on a per-ticket or per-tab basis. A manager or business operator determines the uniform pre-authorization amount for all bar tabs before the start of business. 

How to Enable Bar Tabs

From the Manager screen:

1. Touch System, then choose Credit, then Advanced.
2. Select the checkbox next to Allow credit cards to be authorized ahead of time.
3. Enter the desired pre-authorization amount in the Standard authorization amount field.
4. Touch OK.

 

Important: The time a preauthorization hold takes to expire varies by bank, so the credit card holder should always consent to the opening of a ‘bar tab’ and the amount before using their credit card. Those funds will not be available until the bank has processed pre- and post-authorizations and adjusted the account balance accordingly. The time period varies from institution to institution but is generally measured in business days.

When a card is swiped, a slip prints on the receipt printer that indicates the customer’s card has been pre-authorized. You should hand this slip to the customer. If barcodes are printed on customer receipts, you can scan that barcode to recall the ticket for payment.

If the total does not exceed the pre-authorized amount, the system asks the user to confirm the transaction total.

• No allows users to enter the normal credit card transaction screen and adjust the payment total and tip.
• Yes brings up the normal payment screen. Payment for the total amount of the ticket has been collected and is awaiting a tip.

The ticket should remain open until the customer has signed the credit card slip. Then the customer may enter the tip, and you can close the payment/ticket normally.

If the customer is no longer present, you should discuss any decisions regarding gratuity and the lack of a signed customer slip with your merchant processing representative.

Additional Information

HT Hospitality conducts an initial authorization in the amount specified to ensure the card is valid and has funds available. Use of this feature may result in significant additional transaction costs, especially if the amount to authorize is set too low or too high. Debit card holders may see cash funds withheld by their financial institution for a period determined by the institution.

This may result in negative guest feedback. Consult with a merchant processing representative for more advice. You can change this amount or disable the feature at any time.

HT Hospitality does not incrementally authorize a credit card if the ticket's total exceeds the pre-authorized amount on the card. No warning is currently provided stating that the preauthorization amount has been exceeded. All end-users should carefully monitor the preauthorization amount and ticket totals to be aware of any significant disparity. The card can be preauthorized for a second time, but that requires the card be physically swiped again by the end user.

Shift4 assumes no liability for failed post-authorization amounts that exceed the preauthorization total.