What Does Zero-Value Auth Mean?
Zero-value auth (also known as zero-dollar authorization) is a payment verification process in which a card is authorized for zero value. Instead of charging the customer, this method checks if the card is valid and active without moving any money, keeping the experience seamless and secure.
Why Zero-Value Auth Matters for Retailers and eCommerce
Zero-value auth is important for online stores, physical shops, and omnichannel businesses because it validates customer payment cards before an actual transaction. This reduces fraud risk, avoids failed payments at checkout, and saves time while protecting customer experience. It’s a vital tool for subscription models, saved-card programs, and pre-authorization flows in modern commerce.
How Zero-Value Auth Works in Practice
Picture a subscription service setting up a new customer’s payment details:
- The system runs a zero-dollar authorization on the credit card to confirm it’s real and works.
- No funds are withdrawn, so there’s no impact on the customer’s account.
- Once validated, the card is saved on file for future purchases or recurring payments.
Tips for Applying Zero-Value Auth Effectively
Enhance your business by considering these recommendations:
- Use zero-value auth for card-on-file transactions to boost approval rates and preempt declined payments.
- Integrate this process seamlessly into your omnichannel or eCommerce checkout flow for improved customer experience.
- Regularly review your payment processor’s support for zero-value auth to ensure compliance and efficiency.
- Educate your team about the anti-fraud benefits and practical uses of zero-value auth in both physical stores and online environments.
