When you start shipping with Shippo, we do our best to keep you informed about billing changes and charges.
What is the Pre-Authorization Hold?
On your first label purchase, Shippo is using a pre-authorization hold on credit cards to ensure our customers have a smooth buying experience. Customers will see a $25 hold for label purchases on their bank statement before the invoice is paid.
Holding $25 upfront ensures that labels can easily be purchased, more quickly, and without having to make multiple charges.
How does it work?
Prior to your first label purchase, Shippo requires a $25 pre-authorization hold on a credit card.
Here’s an example of what this will look like in the Web App:
As soon as you have accrued more than $25 worth of labels or about 7 days have passed, a charge will be attempted. Failure to successfully pay may result in an inability to purchase more labels.
The pre-authorization hold will never exceed $25 and the invoice balance will be captured no more than 7 days after the first purchase.
It may take a few hours or up to a week for the hold to be removed by the bank.
If the initial invoice has not been paid, the $25 hold will be fully or partially captured if we cannot successfully charge a card on the account.
This process is only applicable for new accounts – once you’ve purchased your first labels you’re free to continue shipping!