Credit Card Pre-Authorization Scenarios

Summary of Credit Card Pre-Authorization Process

10X ERP automatically manages credit card pre-authorizations to ensure accurate and compliant billing once shipments are completed. A pre-authorization temporarily reserves funds on the customer’s card until the corresponding shipment is finalized.

How It Works

• When an order is first published, 10X generates a pre-authorization based on the order total.

• If the shipping method is linked to EasyPost and item weights are included, the system can estimate freight and add that to the pre-authorization amount. Otherwise, the pre-authorization is created for the order total only.

  
  

Note:

The order total can include Add Ons, and 10X recommends adding estimated charges (such as expected freight or handling) at the time of Order Entry whenever possible. Doing so ensures the pre-authorization reflects a more accurate total and minimizes the risk of failed authorizations later in the process.

If estimating these charges is not practical, or EasyPost is not being heavily utilized, 10X suggests one of the following options:

1. Disable Auto-Capture Pre-Auths — Turn off the pre-authorization capture automation option under Admin → Integrations → Stripe, and instead perform direct captures for all credit card payments from the AR Invoices table. This allows Credit Card information capture at time of Order Entry while giving more flexibility to update Invoices prior to capture.
2. Use Deposit Captures — Create a Deposit on Order direct capture at the time of Order publishing to secure at least the initial order total. Any additional charges on the resulting invoice (for example, freight or add-ons) can then be captured separately from the AR Invoices table after the invoice is generated from shipment closure.

3. Hybrid Setup (Pre-Auth & Non–Pre-Auth) — Companies wanting flexibility can configure two separate Payment Terms in Admin → Account → Payment Terms: one that triggers pre-authorizations and one that does not. Users should be trained on when and how to use each option based on the type of order and expected billing adjustments.

   
   

• The pre-authorization automatically extends every 4 days until the related shipment is completed. Once the shipment closes, the pre-authorization is released and the card is charged for the shipment total.

• Each new shipment—whether created from the Sales Order → Shipments tab or via the Ship Tool—runs its own pre-authorization and release cycle.

  
  

Important Note:

Pre-authorizations cannot legally charge more than the originally authorized amount. If the final invoice total exceeds the pre-authorized total (for example, due to added freight or new items), the pre-authorization will fail.

In that case, the correct process is to cancel the existing pre-authorization from the Shipment linked to the invoice, then perform a direct capture of the payment from the AR Invoices table for the full invoice amount.

Key Scenarios:

1. Single Shipment with Stored Card: Pre-authorization runs automatically when the order is published and releases once the shipment is completed.
   • Open Sales Order and Publish It.
   • Select Stored Credit Card (or enter a new one if preferred).
   • Verify Pre-Authorization Is Created for the Order Amount.
   • Navigate to Shipments Tab and Create Shipment.
   • Add Tracking Number and Save the Shipment.

   • Refresh Sales Order to Confirm It’s Closed and Pre-Authorization Dropped Off.

2. Single Shipment without Stored Card: A new card must be entered before running the pre-authorization; the process otherwise mirrors the stored-card workflow.
   • Publish the Order for a customer without a stored credit card.
   • Enter a New Card using demo or live credit card details as applicable.
   • Click Pre-Auth to complete the pre-authorization process.
   • Create the Shipment directly from the order to streamline steps.
   • Add Tracking Information and close the shipment.

   • Verify the Order is Closed and confirm the pre-authorization is released.

3. Multiple Shipments with Stored Card: Each shipment runs and clears its own pre-authorization as it’s completed.
   • Publish the Order with multiple line items (one ready to ship, one backordered).
   • Create the First Shipment directly from the publish screen or the shipments tab.
   • Select the Stored Credit Card when prompted and run the pre-authorization.
   • Add Tracking Information and close the first shipment.
   • Edit the Order once the backordered item is received and ready to ship.
   • Create a Second Shipment, select the stored card again, and complete pre-authorization.

   • Add Tracking and Close the Shipment to complete the order and clear all authorizations.

4. Multiple Shipments without Stored Card: A new card is entered for each shipment; each pre-authorization clears when its shipment closes.
   • Publish the Order with multiple line items (one ready, one backordered).
   • Enter a New Card for the first shipment since no stored card is available.
   • Run the Pre-Authorization and create the first shipment.
   • Add Tracking Information and close the shipment to release the pre-authorization.
   • Edit the Order once backordered items are received and marked as shipped.
   • Create a Second Shipment, re-enter the card information, and complete pre-authorization.

   • Close the Shipment and confirm the order is complete with all pre-authorizations cleared.

5. Ship Tool Workflow: Pre-authorizations run automatically when shipments are created through the Ship Tool and release as each shipment is closed.
   • Publish the Order with multiple line items (one ready, one backordered).
   • Use the Ship Tool (Order Print Tool) to locate and print the order.
   • Create the First Shipment directly from the Ship Tool—pre-authorization runs automatically via the stored card.
   • Add Tracking Information and close the shipment to release the pre-authorization.
   • Edit the Order when the backordered items are received and marked for shipment.
   • Return to the Ship Tool to create the second shipment, triggering another pre-authorization automatically.

   • Close the Second Shipment and confirm the order is complete with no remaining authorizations.