How does credit card processing work for an order?

Understand how credit card processing works at Tough Commerce. We'll walk through the timeline for pre-authorizations and charges and how those adapt to delivery times and order changes.

Introduction

In this Knowledge Base article, we will explain the Tough Commerce ordering process for credit card transactions, including the steps involved, how various transactions are handled, and steps you can take to keep things running smoothly.

Introduction

In this Knowledge Base article, we will explain the Tough Commerce ordering process for credit card transactions, including the steps involved, how various transactions are handled, and the actions required from suppliers. We will provide examples and scenarios to help you better understand the process.

Order Placed
- Credit card details (card number, name, CVC, expiry date, address, and stolen status) are validated to ensure they are correct.
48h Before Delivery
- A pre-authorization is created on the credit card, including a 15% buffer. The pre-authorization amount is the Order Total + the buffer. For example, for an order total of $1,000, a 15% buffer would mean an additional $150 included in the pre-authorization, making the pre-authorization amount $1,150. The buffer percentage can be adjusted based on your business preferences.
Up To 3h Before Delivery
- Changes to Order Total: A second transaction is created if the total increases by $150 or more above the pre-authorization amount. Otherwise, the pre-authorization stays the same.
- Changes to Delivery Time: If the Delivery Time is shifted beyond 48h from the original Delivery Time or shifted more than 2 times (3+), a new pre-authorization is created.
3h Before Delivery
- The current pre-authorization is locked. If any changes are made to the order, pre-authorizations must be created through the order page.
Completing the Order
- Click "Complete Order" to mark the order complete, creating a charge on the customer's card based on the final total.
  - If the Total is less than the pre-authorization amount, the total is charged, and the remaining hold is released back to the customer.
  - If the Total is more than the pre-authorization amount, the pre-authorization charge goes through, and a second charge is created to cover the difference. The order will be marked as "Partially Paid" if the second charge fails.
  - Important! If the order is not marked "Complete" within 5 days of the delivery, the hold is released, and the pre-authorization and payment will need to be initiated manually from the Order page.

Scenarios

Scenario 1: Order Total Increases within the Allowed Limit

An order is placed with a total of $1,000.
48 hours before delivery, a pre-authorization of $1,150 ($1,000 + 15% buffer) is placed on the customer's card.
24 hours before delivery, the order total increases by $100, making the new total $1,100.
Since the new total is within the pre-authorized amount, no additional transactions are created.
Upon delivery, the customer is charged $1,100, and the remaining $50 hold is released.

Scenario 2: Order Total Increases beyond the Allowed Limit

An order is placed with a total of $1,000.
48 hours before delivery, a pre-authorization of $1,150 ($1,000 + 15% buffer) is placed on the customer’s card.
24 hours before delivery, the order total increases by $400, making the new total $1,400.
Since the new total exceeds the pre-authorized amount by more than $150, a second pre-authorization of $250 + 15% ($1,400 - $1,150) is created.
Upon delivery, the customer is charged $1,400 ($1,150 + $250). The 15% buffer on the second transaction is returned to the customer.

Scenario 3: Delivery Time Adjustments

An order is placed with a total of $1,000.
48 hours before delivery, a pre-authorization of $1,150 ($1,000 + 15% buffer) is placed on the customer's card.
The delivery time is rescheduled by 72 hours from the original delivery time.
Since the delivery time is shifted beyond 48 hours from the original time, a new pre-authorization is created, and the previous one is released.
The new pre-authorization amount will be based on the updated order total and the 15% buffer.

Scenario 4: Order Not Marked "Complete" within 5 Days of Delivery

An order is placed with a total of $1,000.
48 hours before delivery, a pre-authorization of $1,150 ($1,000 + 15% buffer) is placed on the customer's card.
The order is delivered, but the supplier does not mark the order "Complete" within 5 days of delivery.
The hold is released, and the supplier must manually pre-authorize and capture the total order amount again by clicking the capture button or completing the order from the order page.

Frequently Asked Questions

When is the pre-authorization placed on the customer's card?

The pre-authorization and a buffer amount are placed on the customer's card within the 48-hour window before delivery.

What happens if the order amount changes between 48 hours and 3 hours before delivery?

If the order amount increases by $150 or more above the pre-authorized amount (+ buffer), the original pre-authorization remains the same, and a second transaction is created for the difference.

Can I change the order after the transaction is locked?

Yes, 3 hours before delivery, the transaction is locked, but you can manually pre-authorize any changes from the Order page.

What happens if the delivery time is adjusted?

The pre-authorization process starts again if the delivery time is moved by more than 48 hours. The original hold is used if it's moved by less than 48 hours (max twice). Pre-authorizations last a maximum of 7 days. If the order is moved twice, the pre-authorization is released, and a new manual pre-authorization is required.

How is the final total charged when the order is marked as "Delivered"?

A second transaction covers the difference if the final total is more than the pre-authorized amount (+ buffer). If it fails, the order becomes partially paid. If the final total is less than the pre-authorized amount (+ buffer), only the lower amount is charged, and the remaining is released.

How long does it take for the hold to be released?

Holds typically take 3-5 days to release to the customer's card.

What happens if the order is not marked "Delivered" within 5 days of delivery?

The hold is released, and the supplier must pre-authorize and capture the total order amount again by clicking the capture button or completing the order.

Conclusion

By understanding the various steps involved in the Tough Commerce ordering process, you can manage orders more effectively and ensure a smooth experience for both suppliers and customers. If you have any questions, please reach out to support@toughcommerce.com.