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Pre-authorisation: Frequently asked questions

Updated today

Where can I initiate a pre-authorisation for a reservation?

You can initiate a pre-authorisation by finding and opening the reservation from either the Calendar or Reservations in Front Desk.

Do I need to tell guests about pre-authorisation?

Yes, when using pre-authorisation, you must inform guests about:

  • The amount being held

  • When the hold will be placed

  • How long the funds will be held

  • That it’s a temporary hold, not a charge

Clear disclosure prevents guest confusion, reduces disputes and keeps you compliant with card network rules (e.g. Visa, Mastercard).

This information should be included in your booking confirmation, check-in policy, and terms & conditions.

Example: A 200 hold will be placed on your card at check-in for incidentals. This is not a charge and will be released within 7 days of checkout.

How long does it take for pre-authorised funds to be released back to the cardholder?

The time it takes for funds to be released back to the card varies depending on the guest’s card issuer and bank. Some card issuers and banks may take up to 15 working days, while others may release the funds as quickly as 3 working days.

Can the process of releasing pre-authorised funds be expedited?

No, once the hold is released, the timeframe for the funds to be returned to the card is dependent on the issuing bank and Little Hotelier Pay has no control over this process.

Is it possible to do multiple pre-authorisation holds on a single reservation?

Yes, you can place multiple pre-authorisation holds on one reservation if required.

Is there a limit on the amount that can be pre-authorised?

No, there is no set limit on the amount that can be pre-authorised.

When is a pre-authorisation hold automatically released?

If no action is taken, the funds from the authorised hold will be automatically released when it reaches its expiry date or 7 days after the guest checks out, whichever comes first. The card issuer determines the expiry date, which is shown in the Payments tab in the reservation or in the Booking Summary.

What is the maximum duration for a pre-authorisation hold?

We offer extended pre-authorisation for the hospitality industry, which can last up to 30 days. However, the actual duration is determined by the guest’s card issuer. If extended holds are not supported, the hold may expire sooner: typically 2–5 days for terminal transactions, or 5–7 days for online transactions. You can see the expiry date in the pre-authorisation entry by opening the reservation and clicking on the Payments tab. Or, reviewing the Booking Summary in the reservation.

Can you apply a credit card surcharge to pre-authorised payments?

Yes, you can apply a credit card surcharge to pre-authorised payments. Check the Apply card surcharge checkbox when you pre-authorise the payment.

Can I update the amount of a pre-authorisation hold?

No, you can’t update the amount, but you can do additional pre-authorisations.

Where do I see a record of all my pre-authorisations for a reservation in one place?

You can view all associated pre-authorisations within each individual reservation.

Can I charge multiple payments from a single pre-authorisation (e.g., charge 20, then 50 from a 100 pre-authorisation)?

No. Once an amount is charged from a pre-authorisation, any remaining uncharged funds are automatically released from the pre-authorisation hold.

How can I tell if a transaction originated from a pre-authorisation?

You can easily identify these transactions within your Payments dashboard (My Apps > Payments > Transactions). Look for the Pre-authorisation tag that indicates charges from a pre-authorisation hold.

Are there any fees for pre-authorisations?

No, there are no additional fees for pre-authorisations. Only the standard transaction fees will apply if the pre-authorisation funds are charged.

Can you change or extend a pre-authorisation?

No, you will need to process a new pre-authorisation.

When processing a pre-authorised charge, what’s the maximum amount I can charge from the funds on hold?

You can only charge up to the amount originally held in the pre-authorisation. If you need to charge more than that, you’ll need to process a separate payment or send a payment request. You can’t charge an amount greater than the initial pre-authorisation hold.

Can you schedule a pre-authorisation like an automated payment?

No, you can’t schedule a pre-authorisation.

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