Pre-Authorization Declined SOP

Procedure#: HB SOP 62

Function:Management Policies

Implementation Date:101522

Policy/Purpose:  Outside of power/POS issues, all tabs should have a credit card on file that has been pre-authorized to ensure there are some funds remaining.  Because Hillman Beer only pre-authorizes a small amount, some cards may decline during the final close process, or in many cases if a guest forgets to close out a tab and is unavailable to provide another form of payment. In such cases, it is crucial for staff to be aware of the pto request procedure overview to ensure that any delays in payment processing are addressed promptly. Additionally, having alternative payment options readily available can help minimize inconvenience for guests and maintain a smooth operational flow. This proactive approach not only enhances customer satisfaction but also streamlines the final closing process for all tabs.

Procedures:

1. If a guest credit card that has been pre-authorized declines, and the guest is not available to provide another form of payment the following steps should take place:
   1. Attempt to run the card at 50% of the final total, followed by 20% if the 50% does not take.  If the card cannot be finalized for full or partial payment at 50% or 20% the following steps can be taken:
      1. The tab name should be updated to indicate the guest last name. date of initial authorization. CC declined.  For example if a guest card for Mr. Catino has declined for 10.12.22 and the guest is not available, the tab should be renamed to “Catino.10.12.22.CC declined.”
      2. The tab credit card should be re-entered the next two days by the AGM or GM only in an effort to close, first at 100%, then 50%, then 20%.  If the credit card does not finalize then the AGM/GM should update the tab name in the following manner:
         1. Day 2 (10/13/22): Catino.10.12.22.CC Declined 2nd attempt
         2. Day 3 (10/14/22): Catino.10.12.22 CC Declined 3rd attempt
      3. On the 4th day of attempting to close out the transaction, the check, or remainder of the check we could not get payment for should be comped to “CC Declined.”  These comps should be printed out so we can see the guest name and date of transaction and submitted with the nightly checklist/deposit for the manager to see.