Stripe payment hold enhances transaction security for Scan to Charge transactions, reducing the risk of revenue loss from failed payments.
How Stripe Payment Hold Works
The Stripe payment hold feature pre-authorizes and holds a fixed amount for Scan to Charge transactions ($50/€50/£50, etc). This process secures funds before charging begins, minimizing the risk of failed payments, especially from guest users.
Benefits of Stripe Payment Hold
Reduced Revenue Loss
By pre-authorizing funds, the risk of failed transactions is significantly reduced, protecting operators from potential revenue loss.
Enhanced Security for Guest Transactions
This feature is particularly beneficial for guest users, where the risk of payment failure may be higher due to lack of account history.
Flexible Charging
Once charging is complete, the actual charge is applied based on the amount of energy used. Any remaining funds from the pre-authorized amount are then released back to the user's account.
How the Process Works
Pre-authorization: When a user initiates a Scan to Charge transaction, Stripe pre-authorizes the fixed amount.
Charging: The charging session proceeds as normal.
Final Charge: Upon completion, the actual amount used is charged to the user's payment method.
Fund Release: Any difference between the pre-authorized amount and the actual charge is released back to the user.
By implementing this Stripe payment hold feature, operators can ensure more secure transactions and reduce the risk of revenue loss from failed payments, particularly in guest-user scenarios.