Understanding “Double Charges” and Preauthorizations: What’s Really Happening at Checkout

For anyone who’s ever checked their banking app after a night out, or a visit to the gas station and thought, “Wait, why was I charged twice?”—you’re not alone. The confusion over preauthorizations and “pending” charges is a common and frustrating experience. But here’s the truth: what often looks like a double charge is rarely, if ever, actually one. It’s the result of how banks and card networks display transactions—particularly when an authorization is placed and a final charge (also called a “capture”) follows.

At GoTab, we’ve built our entire platform around a better way to handle ordering in hospitality—open tabs. That’s not just a feature; it’s a philosophy. We believe that guests should have the flexibility to order how and when they want, and operators should be able to manage service efficiently without closing and reopening tickets for every item. But this flexibility, while empowering, does come with some nuances when it comes to how charges appear in your bank account.

Let’s break down what’s really happening when you see what looks like a double charge—and why it isn’t.

What’s a Preauthorization, and Why Does It Matter?

When you open a tab with GoTab or any other point-of-sale using a credit or debit card (or mobile wallet)—whether at a bar, restaurant, or brewery—what’s typically happening behind the scenes is called a preauthorization. This is a temporary hold on funds, not a final charge. It’s your bank or credit card company’s way of confirming that the card is valid and that there are enough funds to cover a certain amount.

Later, when your check is finalized, the system “captures” the actual amount spent. Depending on the card issuer, both the preauthorization and the final amount may appear in your transaction history temporarily. This is especially common with debit cards and Apple Pay, where preauthorizations may linger longer in “pending” status before falling off.

This leads to one of the biggest misconceptions: that the guest has been double charged. In reality, the money has not been withdrawn twice. One is a hold; the other is the final transaction. Once the bank processes the final charge, the hold disappears.

GoTab’s Open Tab Model: Designed for Flexibility

At GoTab, our platform is centered around the idea of open tabs. That means instead of closing out every time you place an order, your tab stays open until you’re ready to finalize it. This open tab approach is a huge win for guests—offering more convenience—and for operators, who gain better visibility and efficiency (reduced credit card processing fees) during service.

But it also means we have to initiate an authorization when the tab is opened. This is the industry standard and ensures that the transaction can be completed later. When the final charge is captured, that’s when the actual amount is processed.

So to be clear: GoTab does not—and cannot—double charge you. Our system submits only one final charge. Anything else you see on your statement in the meantime is controlled by your bank, not us.

Why It Looks Like a Double Charge (Especially With Debit Cards)

The confusion is largely driven by how different banks and card issuers display these transactions. Some banks immediately show both the initial authorization and the final charge in your online or mobile banking interface, especially with debit cards. Others hide the preauthorization once the capture is completed. Some take hours to update; others take days. Third party spending tracking apps, such as Rocket Money, also complicate matters. They’ll show any authorization attempt as a “charge” even if the attempt was unsuccessful, leading some to think they were charged when merely their tracking app detected an authorization attempt.

This inconsistency leads to panic: “Why are there two charges?” But it’s simply a matter of how your bank displays the timeline of events. Importantly, nothing is withdrawn from your account until the final charge is cleared. The “pending” amount is just that—pending. It will disappear once the bank reconciles it with the final charge.

We understand it’s frustrating. But it’s not fraud, and it’s not GoTab charging you twice. It’s a visibility issue created by the quirks of banking systems and authorization protocols.

We’re Here to Help with Questions About “Duplicate Charges”

If you’re ever concerned about charges, we’re here to help. Our customer support team can confirm in seconds whether a tab was authorized, what amount was captured, and what your final bill entailed. But we also encourage guests to wait for transactions to fully clear before jumping to conclusions. In almost every case, what looked like a double charge will resolve itself within a few business days.

We also encourage hospitality operators to proactively explain this process to their guests. It’s not always intuitive, especially for customers who aren’t familiar with how open tab systems work or how banks display preauthorized amounts.

The bottom line? GoTab’s payment model is built to improve hospitality—not complicate it. Preauthorizations and open tabs are tools to give guests a better experience and operators a smoother way to serve. While we don’t control how banks display transactions, we can guarantee one thing: GoTab will never double charge you.

So next time you see something “pending” in your banking app, know that it’s part of the normal process. The only charge that counts is the one that clears—and that’s something we always keep transparent and secure.

Additional Resources to Learn More About Credit and Debit Card Pre-authorizations

Consumer Financial Protection Bureau (CFPB) – Understanding Authorizations and Holds
CFPB explains how debit and credit card preauthorizations work, particularly how they can temporarily hold funds and cause confusion if not properly understood.
Source: https://www.consumerfinance.gov/ask-cfpb/what-is-a-preauthorization-hold-en-1031

Visa USA – Card Authorization and Transaction Processing
Visa outlines how merchants request authorizations and how financial institutions handle preauthorizations, pending transactions, and final captures.
Source: https://usa.visa.com/support/consumer/visa-rules.html

American Bankers Association (ABA) – Why Do Pending Charges Appear on My Statement?
ABA discusses how banks show pending charges and why these may differ between institutions, especially for debit card users.Source: https://www.aba.com/about-us/press-room/industry-experts/pending-transactions

‍Federal Trade Commission (FTC) – Shopping with Debit and Credit Cards
The FTC highlights consumer protections and how temporary authorizations differ from final charges.Source: https://www.consumer.ftc.gov/articles/0210-shopping-credit-and-debit-cardsBankrate – Why Do Debit Card Holds Happen?
A detailed overview of how and why debit card holds (preauthorizations) appear on accounts and how they resolve.Source: https://www.bankrate.com/banking/checking/debit-card-holds/