Pre-authorisation places a temporary hold on a driver’s credit or debit card before a charging session begins. The hold confirms the card is valid and ensures there are sufficient funds to cover the eventual cost of the charge – the idea being to guarantee the charge point operator won’t end up out of pocket. In principle, this makes sense, but in practice, how it’s implemented can often be inconsistent and unclear, causing anxiety for EV drivers.

Different operators reserve different amounts, sometimes as much as £50. The length of time those funds are held can differ depending on the card issuer – most are a few days, but 30 days is not unheard of, and stories abound of drivers having to actually call CPOs to get their money released. Some customers find themselves with several holds, particularly when a charge fails to initiate properly and the driver tries again. That can lead to situations where a driver has over £100 charged to their card for a £10 charge, which takes days to refund.

In some cases, drivers may not receive any notification regarding these holds, which can lead to confusion when they check their banking apps and find unexpected amounts taken from their accounts. Without clear communication, a temporary pre-authorisation can easily be mistaken for an actual payment, causing drivers to believe they’ve been charged twice. They can find themselves chasing their own money, uncertain about when it will be returned, and whether they can rely on the same infrastructure next time.

This issue isn’t just financial; it’s psychological. When people don’t understand why money has disappeared from their accounts, even temporarily, it can undermine trust. And in an industry that’s still working to win over mainstream users, trust is essential.

Fortunately, the industry doesn’t have to accept this as a permanent problem. Solutions to fix it already exist.

Addressing the issues

One such solution is incremental authorisation, which offers a dynamic, intelligent approach to reserving funds. With incremental authorisation, a charging session begins with a small, initial hold on the customer’s account. As the vehicle draws power, the system progressively increases the authorisation amount in real time, in line with actual usage. This removes the need to place large upfront holds on customer accounts and significantly reduces the risk of drivers seeing funds unexpectedly disappear from their accounts.

There’s also an opportunity to reduce reliance on pre-authorisation altogether by offering more flexible payment models. Prepaid accounts, for example, allow drivers to top up funds in advance, eliminating the need for temporary holds. Subscription models can remove per-session payments, while “pay later” options, especially for fleet and commercial users, enable more predictable billing without tying up funds unnecessarily.

However, payment technology is only part of the answer; effective communication is equally important. CPOs need to be transparent about what will be held, why it’s being held, and how soon it will be released. This information should be clearly communicated –on the chargepoint itself or via the app . A simple statement like “£15 will be held on your card during charging. This is not a payment. Any unused funds will be returned within 1 – 2 working days” can eliminate confusion and reassure the driver.

CPOs can also build trust by giving drivers visibility into what’s happening behind the scenes. In-app dashboards or real-time notifications showing pre-authorisation status, actual costs, and expected refund timelines make the process more transparent. This openness is crucial, because when drivers feel informed and in control, they’re much less likely to become frustrated.

Delivering on a promise

The EV industry is built on a promise of progress through cleaner energy, innovative technology, and a smarter way to drive. But that promise can fall short if the payment experience doesn’t meet expectations. Reducing confusion around pre-authorisation will increase customer satisfaction, ultimately helping accelerate the transition to EVs.

To discuss the issues and solutions raised in the article, including incremental authorisation, pre-payment, and in-app payment communication, contact Paythru on hello@payhtru.com.