Dropship Vendor Pre-Authorizes More than Amount

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We are working with a new vendor and they are pre-authorizing orders with an additional 20% of the total order cost. This is the first vendor we've worked with that has ever done this and I'm not sure how I feel about that. If we have five orders for $100, that would tie up $100 until the pre-auth clears and that seems extreme.

Thoughts - anyone?
#amount #dropship #preauthorizes #vendor
  • Profile picture of the author darbok
    You should definitely call them and ask why this is. Also go over their terms of service and see if that's mentioned.
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  • Profile picture of the author lastreporter
    Originally Posted by Temorrow View Post

    We are working with a new vendor and they are pre-authorizing orders with an additional 20% of the total order cost. This is the first vendor we've worked with that has ever done this and I'm not sure how I feel about that. If we have five orders for $100, that would tie up $100 until the pre-auth clears and that seems extreme.

    Thoughts - anyone?
    This is not a normal practice. Do not continue doing business with them until they explain the charge.
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