Your merchant processor has committed to upholding the highest levels of security as it relates to your financial information. Using everything from encrypted filing to credit pre-authorizations, your processor adheres to the highest standard of PCI compliance to protect you and your donors from fraud and identity theft. Pre-authorizations help to ensure that all card information entered will process correctly and helps to minimize fraudulent transactions from being processed.
Any time that the credit card processor encounters a new credit card or payment profile, a small transaction ($0.25 in our case) will be sent as a “test” transaction. This payment carries no settlement instructions and will not actually be “settled” or deducted from the card-holder’s account. This transaction is sent simply to ensure that both the card information is valid, and that communication between the card processor and the banking institution is working as it should. The card holder will see these kinds of test transactions disappear from the “processing” status shortly after its appearance.
This kind of test is standard practice for many large merchant institutions (i.e. Amazon, Paypal, Google Store, etc) as it prevents fraud and theft from occurring. Please know that you will not be charged this amount. It is simply a test that ensures your financial security. As a merchant, you can assure your donors that this test will not be deducted from their account and explain that security feature such as this are designed to protect them from malicious activity.