In this guide
Authorization Actions
Paying by Authorization
Frequently Asked Questions
Which user roles can use this feature?
How soon do authorizations expire?
Can authorizations have a purpose assigned?
How do authorizations affect my accounting?
Important Note to Adyen Direct Customers
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Hotels often require authorization for a certain amount of money at check-in for reasons such as
- Misconduct: authorizing a certain amount of money to cover damages made to the room to ensure that the guest has sufficient funds to cover these incidents.
- Consumption: to ensure that the guest has sufficient funds to cover incidentals such as room service, mini-bar purchases, spa treatments, etc.
Apaleo allows you to block money on a card for such needs and the money can be later used (”consumed”) to pay charges or released (”canceled”). Since no actual money is received before it is consumed, no liabilities are created.
Creating an Authorization
It is possible to add an authorization to a reservation or a booking. There is no limit to how many authorizations can be created.
The following methods of creating authorizations are supported:
- By terminal
- By payment account
- By payment link
There is an “Authorizations” tab in a reservation or booking screen with a “Create an authorization” button.
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For each authorization, “Authorized amount” shows the amount that was authorized (blocked). “Available balance” shows the amount that hasn’t been consumed (the authorized amount minus consumptions).
These numbers are summed up at the top of the page for all active authorizations.
Authorization Actions
- An active authorization can be canceled - this action can also be understood as releasing the blocked amount.
- It is possible to modify the authorized amount to a higher or a lower amount as long as it is not lower than the amount already consumed.
- It is also possible to change the expiration date. However, it is not possible to select what date to extend it to - it depends on the card scheme's authorization validity period (we extend to the maximum of it).
Paying by Authorization
Authorizations can be used to pay folio charges.
- If an authorization belongs to a reservation, the authorized amount can be used to pay the charges in all folios belonging to that reservation.
- If an authorization belongs to a booking, the authorized amount can be used to pay the charges in all booking folios belonging to that booking, as well as all reservation folios of the reservations belonging to that booking.
If there’s an active authorization, when adding a payment, you will see an “Authorization” button.
Clicking on it allows you to choose which authorization to use and how much of it to use to pay the folio charges.
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Frequently Asked Questions
Which user roles can use this feature?Â
- Authorizations can be seen by all access levels except “Revenue Manager” and “Housekeeping”
- Authorizations can be created by Account and Property Admins, Reservation Managers, Front Desk, and Senior Front Desk.
- Authorizations can be modified by Account and Property Admins, Reservation Managers, and Senior Front Desk.
How soon do authorizations expire?
Authorizations usually expire after 28 days, but it depends on the card issuer. This is not something Apaleo or the payment processor have control over.
Can authorizations have a purpose assigned?
No, not at the moment.
How do authorizations affect my accounting?
Authorizations are different from prepayments: since no actual money is received before the authorization is consumed, no liabilities are created. An accounting transaction is thus only created at the point when the authorization is used to pay folio charges, and this is handled like a regular payment transaction.
Important Note to Adyen Direct Customers
If you are using Adyen Direct and want to use authorizations by payment link, you need to reach out to Adyen and request them to enable the following setting for your merchant: AdditionalData.AuthorisationType: PreAuth
Authorizations by terminal and payment account will work without any additional setup.Â