How to authorize a card with the payment gateway feature

Introduction

A credit card authorization places a temporary hold on funds without immediately charging the guest. The authorized amount can later be captured as a payment or voided to release the hold.

This guide explains how to add a card to a reservation, authorize an amount, manage an existing authorization, and review the related transaction records. Before starting, confirm that payment processing is configured in Cloudbeds PMS.

For Cloudbeds Payments incidentals workflows, review Cloudbeds Payments - How to authorize incidentals.

Table of contents

• Important considerations
• Add and authorize a credit card
• Authorization period
• Manage an existing authorization
• Review authorization and capture logs

Important considerations

Add and authorize a credit card

A card must be stored on the reservation before you can authorize an amount. Use the manual-entry option for a supported third-party gateway. Properties using Cloudbeds Payments can also tokenize a card through a connected terminal.

Option A: Enter card details manually

1. Open the reservation and select the Credit Cards tab.
2. Select +ADD.
3. Enter the card details. 
   

Option B: Add a card with a Cloudbeds Payments terminal

A Cloudbeds Payments terminal cannot create an authorization directly. Use it to tokenize and save the card on the reservation without charging the guest. Create the authorization from Cloudbeds PMS after the card is saved.

1. Open the reservation and select the Credit Cards tab.
2. Select +ADD, and then select Add with Terminal.
3. Select the connected card reader and ask the guest to swipe, insert, or tap their card.
4. Select Save. The card is tokenized and stored on the reservation without creating a charge.

Authorize the saved card

After the card is stored on the reservation, complete the authorization:

1. Select the card you want to authorize. This is required when the reservation has multiple stored cards.
2. Select AUTHORIZE. 
   
3. Enter the amount to authorize, and then select AUTHORIZE. 
   

Authorization period

Authorization expiration depends on the connected gateway and the transaction's country. Confirm the applicable hold period with the payment gateway when planning deposits for reservations with a future arrival date.

• The payment gateway determines how long the authorized amount remains blocked on the card.
• The maximum authorization period in Cloudbeds PMS is 30 days for Cloudbeds Payments and seven days for other payment gateways.
• Mexico exception: When the property and the card issuer are in Mexico, the authorization expires after seven days.
• When an authorization expires, it is voided. The amount is removed from the card details, and the option to capture or void the authorization is no longer available.
• For reservations with a distant check-in date, you can authorize the card again closer to arrival. Include the authorization timing in the property's payment or deposit policy.

Manage an existing authorization

After a card is authorized, the reservation displays options to capture or void the authorization.

Capture

Use Capture to charge funds from the existing authorization.

• Enter an amount that is less than or equal to the authorized amount.
• If you capture less than the authorized amount, the remaining amount is voided. If you enter more than the authorized amount, the transaction fails.

Void

Use Void to cancel the authorization and request release of the held funds.

• Cloudbeds sends the void request when you select the action.
• The guest's financial institution may take up to 14 days to make the funds available again. 
  

Review authorization and capture logs

The card logs show the date and time, transaction type, transaction or payment identifier, and amount associated with authorization and capture activity.

1. Open the reservation's Credit Cards tab.
2. Select Logs. 
   

• The transaction ID is generated by the payment gateway to identify a financial operation involving funds movement.
• Use the identifier as a reference when searching for the transaction in the payment gateway's portal.
• Depending on the gateway, the Payment Processing Report may show a payment ID instead. Many gateways do not generate a transaction ID for an authorization because no funds have moved yet.

Next Operational Step

After authorizing, capturing, or voiding the card, review the Payment Processing Report when you need to reconcile the transaction or locate its gateway reference.