At a glance
| Item | Detail |
|---|---|
| Also called | Authorization hold, pre-auth. Visa calls one kind an estimated authorization |
| French term | Préautorisation |
| Where it sits in the payment flow | After the card is read and before the final amount is known. A capture or a reversal comes next |
| Who controls it | The card issuer places the hold. The card networks set the rules. Your POS and processor send the requests |
| Does it cost the merchant | No rate for the hold itself in the sources we read. Visa charges a fee on approved holds that are never completed or reversed |
How it works
Visa's merchant guide describes an estimated authorization as a request made before the merchant knows the final amount. It must be a genuine estimate. It must not include tips or a buffer for damage.
- The merchant asks the issuer to authorize an estimated amount. The merchant must tell the customer it is an estimate and give the amount. The issuer approves and places the hold.
- If the customer spends more, the merchant can ask for an incremental authorization, which adds to the hold.
- When the sale ends, the merchant completes it for the final amount. This step is called a capture.
- If the hold is larger than the final bill, or the sale is cancelled, the merchant must release the extra. Visa says to do this within 24 hours.
A Canadian example
A bar in Montréal opens a tab for a table of four and asks for a $120 hold. The bill closes at $95. The bar captures $95 and releases the other $25 within 24 hours. The tip is not part of the hold. This is an example only, not a quote. No rate is used, because the hold itself has no published rate.
What is different in Canada and Québec
- Visa's guide is general and sends merchants to the Visa Rules for country timeframes. Ask your acquirer, the company that processes your card sales, for the Canadian ones.
- Clover's developer pages for Canada list the REST Pay methods auth, preAuth and tipAdjustAuth as not supported. Its transaction types page lists pre-auth as US only. Confirm what your Clover setup in Canada can do before you plan a tab around it.
- Québec's consumer protection office says suggested tip percentages must be worked out on the price before GST and QST. Visa keeps tips out of an estimate. So the final charge can be higher than the hold.
- A restaurant in Québec must give every bill from a system certified by Revenu Québec and connected to WEB-SRM. A card hold does not replace the bill.
What it costs and where it shows on your statement
We found no published rate for a hold. In general, the sale pays its usual card costs when it is completed. Visa describes two fees for holds that are handled badly. One is a misuse fee on approved holds that are never matched to a completed sale or a release. The other is a fee on completed sales that match no approved hold. Visa's guide gives no dollar amount for either. Look for them in the network or processing lines of your statement. Names vary by processor.
Where CleverPays fits in this step
The issuer places the hold and the card networks set the rules for how long it lasts and how to release it. Your POS and your processor send the requests. CleverPays does not approve or decline cards and does not set Visa or Mastercard rules. Clover is Fiserv's platform, and Clover devices in Canada work only with Fiserv processing.
We can help Québec restaurants choose a certified system. We can confirm with you what your Clover setup in Canada does for tabs and tip adjustments before you rely on it. We can read a recent statement with you and show each fee line, and we will walk you through a fee or a dispute. We answer in English and French.
Common mistakes
- Leaving a hold open after the guest has gone. Visa says to release an unused hold within 24 hours.
- Putting the tip or a damage buffer into an estimate. Visa does not allow it.
- Not telling the customer. Visa requires the merchant to say the hold is an estimate and give the amount.
Related terms
- Authorization: the issuer's approval of a card sale.
- Incremental authorization: a request that adds to an existing hold.
- Capture: the step that turns a hold into a completed sale.
- Authorization reversal: the message that releases a hold.
- Chargeback: a payment the cardholder disputes through the issuer.
- WEB-SRM: Revenu Québec's service for restaurant billing.
Common questions
How long does a hold last?
It depends on the card, the type of sale and the country. Visa's guide gives maximum times that vary by merchant type and sends you to the Visa Rules for country detail. Ask your acquirer.
What if the final bill is higher than the hold?
Visa allows an incremental authorization after an estimated one. It adds to the hold, and you can request more than one.
Sources
- Visa, Estimated and incremental authorization and reversal processing requirements for Visa merchants (PDF), read 6 October 2026. Published on Visa's US site.
- Clover, Transaction types you can process on a Clover device, read 6 October 2026.
- Clover, Canada merchants, read 6 October 2026.
- Clover, Capture pre-authorized payments, read 6 October 2026.
- Office de la protection du consommateur, Pourboire, read 6 October 2026.
- Revenu Québec, Mandatory billing, from the CleverPays evidence file checked 24 September 2026.
- Clover Canada, Pricing FAQ, read 6 October 2026.
