We mentioned them briefly above, but first, for those new to the business - what is a bar tab, anyway? 5 ways bar businesses benefit from preauthorizationĪ free, customizable Bar and Lounge POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet or editable PDF.īefore we discuss preauthorization, let’s backtrack and talk about bar tabs.What is POS preauthorization and how does it work?.To fully understand the importance of preauthorization for bar businesses, we will review the following below: There are many POS preauthorization systems that securely retain customers’ information - and ensure that you won’t be stuck with a customer’s bill if there are insufficient funds. It ensures that a customer has adequate funds on their credit card before service, and it's a convenient way to make sure each customer’s order is attributed to their card. Preauthorization, also known as preauth or preauthorized transactions, works by using a customer’s card to open up a bar tab. No, not the healthcare kind - although they do share some similarities.Ĭhances are when customers visit your business, they’ll likely order more than one drink. When it comes to bar businesses, there’s a technological advancement for bar POS systems that’s becoming increasingly indispensable to providing excellent customer service: preauthorization. If you own a bar, are looking to open a bar, or have a bar in your restaurant, you understand that there are many factors contributing to the overall success of your business.
In this post, we define preauth, cover how it relates to your POS system, and talk about how it benefits bars and nightclubs.
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