Guide
An open tab is a promise to pay later. Pre-authorization is how the bar makes sure that promise is good before the second round.
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Short answer: When a guest opens a tab, the card is pre-authorized for a set amount, which places a hold without charging it. Drinks are added through the night, and at close-out the final amount, including any tip, is captured and the hold released. It protects the bar against walkouts while keeping the guest's card in their pocket.
Key facts
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Merchant Fund Express explains payments in plain English so owners can make better decisions about equipment and processing.
An open tab is a promise to pay later. Pre-authorization is how the bar makes sure that promise is good before the second round.
When a guest opens a tab, the bartender can swipe, insert or tap a card and hold it against the tab. The system asks the card's bank to set aside an amount. That hold is not a charge; the actual charge happens when the tab closes, with the final total and the tip.
The point is protection. If a guest walks out, the bar still has an authorized card. If the final total runs well past the original hold, the bar may need to authorize again or take a new card, so long tabs on busy nights deserve attention.
Start every tab with a card hold rather than a name scribbled on a napkin.
Use the guest's name or a seat so any bartender can find it.
When a tab grows well past its hold, check in with the guest before it becomes a problem.
Close every tab before the end of the night so holds become final charges with the tip.
| Approach | What happens | Risk |
|---|---|---|
| Card held at open | The card is authorized and the tab is tied to it | Low, as long as the tab is closed the same night |
| Card kept behind the bar | Physical card stays with the bartender | Lost cards and unhappy guests |
| No card, name only | Tab relies on trust | Walkouts are unpaid |
A sports bar on a playoff night opens forty tabs before kickoff. Each one starts with a card hold and a name. By the fourth quarter two tabs have tripled, so the bartender checks in with both guests. At close every tab is settled, holds become final charges and the tip report matches the drawer.
A device or pricing decision looks bigger on paper than it is in practice. Most owners are well served by choosing for their busiest ten minutes, keeping the first setup simple and adding pieces as volume proves the need.
Call (305) 384-8391 and tell us how you sell. We will explain the options in plain English, give you a personal quote and review your current statement for free. There is no price list to compare against, because the right setup depends on your business.
As explained by Merchant Fund Express. Updated 2026.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
No. It is a temporary hold. The guest is charged when the tab is closed.
Closing unclosed tabs at the end of the night is part of the closing routine; set a policy for the tip on those tabs and post it.
Yes. A Flex can open and close tabs from the floor or patio.
It can appear as pending until the final charge replaces it. Timing depends on the guest's bank.
Yes. English and Spanish support are available by phone, on site and during staff training, so the person who opens on Monday can learn it in the language they work in.
Sometimes. We review what you have and tell you what can be reused, what is worth replacing and what you should check in your contract before deciding.
Call Merchant Fund Express. We install it, train your staff and stay on the line after launch. Ask for a free rate review while you are at it.
