Some electronic transactions may be required to have funds verified at the bank level before the card can be stored in Chargify. We call this pre-authorization. When a credit card is added to a Subscription within Chargify, the card must be validated to contain actual funds before it can be attached to a Subscription. This protects both you and the consumer:
- You, as the merchant, should protect your account from false signups with bogus card. Pre-authorization protects you from this by verifying funds are available.
- Your subscribers are protected from a negative shopping experience by allowing only valid cards to be entered into the Chargify platform.
Transactions initiated with a debit card or credit card are assesssed a $1.00 charge. This charge will be held until the initial balance clears/settles. Once the initial charge clears, the authorization amount “falls off.” In the case of debit cards, authorization holds can fall off the account, thus rendering the authorization amount available again, anywhere from 1 to 8 business days after the transaction date depending on the bank’s policy. In the case of credit cards, holds may last as long as 30 days, depending on the issuing bank.
Under the Settings tab –> Payment Gateways you’ll be able to turn on or turn off card validation for the following gatewys: