How do I decide what authorization amount to use when configuring my payment gateway?

Overview

Electronic payment methods may be verified when the payment method gets created. Verification is controlled using the verify options on the payment gateway configuration page. If the verify options are enabled, electronic payment methods are submitted to the payment gateway for authorization and if the authorization is approved, the payment method can be saved in the Zuora Customer Account and available to use to used for future payment processing. If the verify options are disabled, then no authorization is requested from the payment gateway and the payment method can be saved in the Zuora customer account.

When electronic payment methods are verified, the gateway will check the CVV code and address (if information is submitted). Address verification is based on the AVS settings established by the merchant account settings in the payment gateway. The authorization request also charges the payment method for an authorization amount which is immediately reversed by Zuora. Enabling the verify options is highly recommended to avoid storing payment methods in Zuora which are not valid as such payment methods may fail when payment is attempted. 

Solution

1. Zuora's payment gateway configuration allows you to set an authorization amount of your choice (it can be $0.00, $0.01, $1.00 or other amount). Many merchants will use an authorization amount greater than $0.00 as they feel it is more meaningful than a $0.00 authorization. A $1.00 authorization amount is preferred by some merchants while others prefer to do a $0 authorization. This solution provides more information on $0 authorizations and what steps to take prior to setting your authorization amount to $0.
2. Paypal has an article which discusses authorization amounts and Visa's requirement and Account Verification Program that requires authorization amounts be $0.00.  Visa essentially requires $0.00 authorizations or else will charge additional fees to the merchant UNLESS the authorization amount is immediately reversed (which Zuora handles automatically). 
   • Zuora follows best practice which is to perform an authorization then do an immediate reversal of the authorization so the authorization amount is not withheld in the cardholders account and such amount is not decreased in the card holder's account.
3. If you want to set the authorization amount to be $0.00, check the following:
   • Make sure you are using a gateway in which Zuora supports $0.00 authorizations. The following Zuora payment gateway integrations will accept $0.00 authorizations: Cybersource, Merchant e-Solutions, and Verifi.
   • Make sure your payment gateway and processor both accept $0.00 authorizations. For example, the PayPal payment processor currently does not accept $0.00 authorizations and will recognize that as a invalid amount. Therefore, if you are using Website Payments Pro (which uses the PayPal Processor), you will not be able to submit $0.00 authorizations.
   • If you are using a payment gateway and processor which does support $0.00 authorizations but which is not supported by Zuora, you may file an enhancement request with Zuora Global Support if you would like this support to be added. 

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