In today’s world of cashless payments, preauthorization is a common and secure way to enable customers to access products or services while ensuring a smooth payment process. You may have already experienced it without even thinking about it—at an EV charging station, gas pump, hotel check-in, or even when renting a car.
So why does Scallix use it in our smart coolers?
What is Preauthorization?
Preauthorization is a temporary hold placed on a specific amount of funds on a customer’s payment method. It’s not an actual charge—just a way to verify that funds are available and to protect against unpaid transactions.
Why We Use It in Our Smart Coolers
Our AI-powered smart coolers are designed to give customers full access to all the products stored inside once they unlock the cooler. Preauthorization ensures:
- Seamless Shopping Experience – Customers can browse and pick any product without multiple checkout steps.
- Security – A temporary hold guarantees coverage for the value of items taken, preventing payment issues.
- Speed – The process happens instantly in the background, so customers focus on their purchase, not the payment process.
Where Else You’ll See This Practice
Preauthorization is common across industries where immediate access to goods or services is provided before the final bill is calculated, such as:
- EV charging stations – A hold is placed to cover expected charging costs.
- Gas stations – A hold ensures funds are available for fuel.
- Hotels – A deposit covers the room cost and any incidentals.
- Car rentals – A hold is used for the rental fee plus possible damages or late returns.
- Food delivery services – Some platforms place a temporary hold before confirming the order.
When the Hold is Released
In our smart coolers, the preauthorization hold is released within 2 days—and most of the time, it’s released the very same day. This ensures that our customers’ funds are not tied up longer than necessary, while still maintaining a secure, frictionless buying experience.
In short: Preauthorization lets us give you instant, trusted access to everything in our cooler while protecting both you and the merchant. It’s fast, secure, and already part of the way you shop and travel every day.