Also called: $0 auth, Account verification, Zero-value authorization
What a zero-dollar authorization is
A zero-dollar authorization is a card authorization request for $0. It asks the card issuer to check the payment details without charging the customer or reserving money. It is a way to test a card before you save it to a customer profile or use it for a future payment.
The issuer’s response can indicate whether the card is valid and whether submitted details match. The check does not prove that money will be available for a later sale. The card could expire, be replaced, reach its limit, or be blocked before you charge it.
A successful $0 check confirms card details at that moment, not that a later payment will go through.
How it works
Your payment setup sends the $0 request to the issuer. The issuer returns a response, and your system can use that result to decide whether to save the payment method or ask the customer to correct their details. The request itself does not collect payment.
Businesses use these checks when a customer adds a card for future purchases, starts a free trial, or makes a reservation. For example, validating a card when a hotel booking is made can identify a problem before the guest arrives, while leaving the card uncharged at booking.
What it means for your business
A successful check reduces the chance that you save an invalid card number, but it does not guarantee a later payment will be approved. Treat the result as a check of the details at that moment, not as a promise of funds or payment.
A zero-dollar check differs from a preauthorization. A preauthorization places a temporary hold for a nonzero amount; a $0 request does not. Some systems retry a failed $0 check with a $1 authorization, which is a different request and can appear to the customer as a small pending amount.
What it means for your costs
The $0 request does not bill the customer, but that does not establish whether your processor charges your business for submitting it. The available documentation does not set a universal merchant fee or a standard fee amount for zero-dollar authorizations. Do not assume the request is free to process.
The check can help you catch a bad card before a later payment fails, but repeated attempts can look suspicious to customers and create avoidable support work. Review your processing statement and your pricing terms for any authorization or account-verification charge, and compare the listed fee with the number of verification requests.
Limits and customer experience
A zero-dollar authorization is not a charge, a funds guarantee, or proof that a customer will complete a later purchase. Explain the check when you collect card details, especially for a free trial or reservation. If your system instead sends a $1 test authorization and reversal, tell customers what they may see in online banking.
What you can actually change
- Confirm the request type. Ask your payment system whether it sends a true $0 authorization or a $1 test authorization followed by a reversal. The two can look different to customers.
- Check verification fees. Look for authorization or account-verification charges in your processing terms and statement. Compare the fee line with the count of verification requests.
- Set customer expectations. Explain why you are checking a card before storing it or starting a trial. Get consent before saving payment details, and make future charge terms clear.
- Protect stored details. Use tokenization for saved cards. Do not retain sensitive authentication data, such as a card security code, after authorization.
Frequently asked questions
Does a zero-dollar authorization charge the customer?
No. The request amount is $0, so it does not bill the customer or place a funds hold. A separate $1 test authorization is not a zero-dollar authorization and can appear as a pending amount.
Does approval guarantee a future card payment will work?
No. Approval checks the card details at that time. Before your later payment, the card could expire, be replaced, reach its limit, or be blocked, so the later charge can still fail.
Can my business be charged for a zero-dollar authorization?
The request does not charge the customer, but that alone does not establish whether your processor bills your business. There is no universal fee amount in the available documentation. Review your statement for authorization or account-verification fees.
Where does a zero-dollar authorization appear on a statement?
There is no standard merchant-statement label established for these requests. The issuer controls how a verification appears to the cardholder, and some customer-facing systems show a $1 test authorization and reversal differently from a true $0 check.