How to Enable Auto-Charge

Overview of Auto-Charge

Auto-charge is a payment automation feature that automatically processes credit card payments for winning bidders after an auction closes, eliminating the need for manual checkout or payment collection. When enabled, the system charges saved payment methods on file immediately or at a scheduled time, streamlining the post-auction process and ensuring faster, more reliable revenue collection for your organization.

What is Auto-Charge?

How Auto-Charge Works

The automatic payment collection process:

During Registration:

1. Bidders register for auction
2. Provide credit card information
3. Card securely stored (tokenized)
4. Authorization hold may be placed
5. Bidder acknowledges auto-charge terms

During Auction:

1. Bidders place bids normally
2. Card remains on file
3. No charges until auction closes
4. Bidders can update payment method
5. System tracks winning bids

After Auction Closes:

1. System identifies all winners
2. Calculates total amounts owed
3. Automatically charges payment methods
4. Processes all transactions
5. Sends confirmation receipts
6. Winners notified of payment

Payment Completion:

1. Funds transferred to your account
2. Items ready for fulfillment
3. No manual collection needed
4. Automatic reconciliation
5. Complete transaction records

Auto-Charge vs. Manual Checkout

Understanding the differences:

Auto-Charge (Automatic):

• Charges happen automatically
• No bidder action required
• Immediate after close (or scheduled)
• 95-98% collection rate
• Minimal administrative work
• Faster revenue receipt
• Reduced payment delays
• Better cash flow

Manual Checkout (Traditional):

• Bidders must complete checkout
• Action required from winners
• Flexible timing
• 70-85% collection rate
• Follow-up required
• Payment reminders needed
• More administrative burden
• Slower revenue collection

Comparison Table:

Benefits of Auto-Charge

For Organizations

Advantages for auction hosts:

Improved Collection Rates:

• 95-98% vs. 70-85% manual collection
• Eliminates "forgot to checkout"
• No abandoned carts
• Immediate payment capture
• Reduced non-payment issues

Time Savings:

• No manual payment processing
• No checkout reminders needed
• No chasing down payments
• Automated reconciliation
• Staff focus on fulfillment

Faster Revenue:

• Money in account within days
• Immediate processing after close
• Predictable cash flow
• Faster access to funds
• Better financial planning

Reduced Administrative Burden:

• Fewer payment-related emails
• Less customer service time
• Automated receipts
• Simplified accounting
• Streamlined operations

Better Data:

• Complete payment records
• Automatic reporting
• Real-time revenue tracking
• Clear audit trail
• Easy reconciliation

Professional Operations:

• Modern, seamless process
• Reflects technological sophistication
• Competitive with commercial platforms
• Enhanced donor experience
• Organizational efficiency

For Bidders

Advantages for participants:

Convenience:

• No additional checkout step
• Don't need to remember to pay
• Automatic completion
• One-time card entry
• Seamless experience

Time Savings:

• No manual payment process
• Instant transaction completion
• No payment deadlines to track
• Immediate confirmation
• Quick item receipt

Transparency:

• Clear terms upfront
• Know charges will be automatic
• Receipt immediately delivered
• Transaction details provided
• No surprises

Peace of Mind:

• Won't accidentally miss payment deadline
• No risk of losing items due to non-payment
• Guaranteed completion
• Professional process
• Trustworthy system

How to Enable Auto-Charge

Prerequisites

Before enabling auto-charge:

Payment Processor Connected:

• Stripe, PayPal, or Square connected
• Account fully verified
• Live mode enabled
• Able to process charges
• Test transaction successful

Terms and Conditions Updated:

• Include auto-charge disclosure
• Clear payment timing stated
• Refund policy defined
• Terms require bidder acceptance
• Legal compliance ensured

Communication Plan:

• Bidders informed about auto-charge
• Clear messaging in registration
• Email confirmations mention auto-charge
• FAQs address common questions
• Support ready to assist

Step-by-Step Enablement

Step 1: Access Payment Settings

1. Log into CharityAuctionsToday dashboard
2. Select your auction event
3. Navigate to "Settings" or "Auction Settings"
4. Click "Payment Settings" or "Checkout Options"
5. Locate auto-charge configuration section

Step 2: Enable Auto-Charge

1. Find "Auto-Charge" or "Automatic Payment Collection" toggle
2. Switch from OFF to ON
3. Confirm you want to enable
4. Acknowledge terms if prompted
5. Setting activates immediately

Step 3: Configure Charge Timing

Choose when charges occur:

Immediate After Close:

• Charges process right when auction ends
• Fastest revenue collection
• Best for time-sensitive needs
• Recommended for most auctions

Delayed Charge:

• Wait X hours after close (e.g., 24 hours)
• Allows winner verification
• Time for dispute resolution
• Grace period for changes
• Good for complex auctions

Scheduled Time:

• Specific date/time for charging
• Batch process all at once
• Coordinate with fulfillment
• Specific business needs

Select Timing:

1. Choose timing option from dropdown
2. If delayed, set hours to wait
3. If scheduled, set date and time
4. Consider your operational needs
5. Save timing preference

Step 4: Configure Failed Payment Handling

Set up retry logic:

Retry Attempts:

• How many times to retry failed charges
• Typical: 2-3 retry attempts
• Spacing between retries (e.g., 24 hours)
• Automatic vs. manual retry

Failed Payment Actions:

• Notify winner immediately
• Send payment update link
• Request new payment method
• Set deadline for resolution
• Define consequences (item release, account restriction)

Configuration:

1. Set number of retry attempts (2-3 recommended)
2. Set retry interval (12-24 hours)
3. Enable failed payment notifications
4. Configure winner communication
5. Define final actions if all attempts fail

Step 5: Set Communication Preferences

Configure automatic messages:

Confirmation Emails:

• Enable charge success notifications
• Include receipt information
• Provide item pickup/delivery details
• Thank bidders for support
• Include contact information

Failed Payment Alerts:

• Notify winners of failed charges
• Provide payment update instructions
• Clear deadline information
• Support contact details
• Resolution process explained

Customize Email Templates:

1. Edit email subject lines
2. Customize message content
3. Include organization branding
4. Add specific instructions
5. Test email delivery

Step 6: Test Auto-Charge

Verify everything works:

Test Process:

1. Create test bidder account
2. Register with test credit card
3. Place winning bid on test item
4. Close auction or trigger close
5. Verify charge processes automatically
6. Check email confirmations sent
7. Review transaction in processor dashboard
8. Confirm reporting accurate

Test Scenarios:

• Successful charge
• Failed charge (insufficient funds)
• Retry logic
• Email notifications
• Mobile experience
• Multiple items per bidder
• Different payment methods

Step 7: Inform Bidders

Communicate auto-charge clearly:

Registration Page:

• Prominent auto-charge notice
• Explain timing and process
• Link to full terms
• Checkbox acknowledgment
• Clear disclosure

Confirmation Emails:

• Mention auto-charge will occur
• State timing (immediate/delayed)
• Provide payment method update link
• Include support contact
• Set expectations

During Auction:

• Reminder emails mention auto-charge
• Closing announcements include auto-charge notice
• FAQs address common questions
• Support available for concerns

Step 8: Monitor and Optimize

Track auto-charge performance:

Key Metrics:

• Charge success rate
• Failed charge rate
• Retry success rate
• Time to full collection
• Bidder inquiries/complaints

Ongoing Management:

• Review failed charges daily
• Follow up on persistent failures
• Adjust timing if needed
• Optimize email templates
• Refine retry logic

Auto-Charge Settings and Options

Charge Authorization

Pre-authorization options:

Authorization Hold:

• Place temporary hold on card during auction
• Verifies card is valid
• Hold amount (e.g., $1, or estimated total)
• Released if bidder doesn't win
• Converted to charge if winner

No Pre-Authorization:

• Card validated but no hold
• Charge only after winning
• Less friction for bidders
• Slightly higher failure risk
• More common approach

Partial vs. Full Auto-Charge

Flexibility in automation:

Full Auto-Charge:

• All winning bidders charged automatically
• Complete automation
• Maximum efficiency
• 100% auto-charge

Partial Auto-Charge:

• Auto-charge up to certain amount
• Manual approval for high values
• Example: Auto-charge under $500, manual over
• Balance automation with control
• Risk management

Selective Auto-Charge:

• Some items auto-charged
• Others require manual checkout
• Category-based rules
• Item-specific settings
• Customized approach

Charge Bundling

How multiple item wins are handled:

Bundle All Items:

• One charge for all items won
• Combined total
• Single transaction
• Lower processing fees
• Cleaner for bidders

Separate Charges:

• Individual charge per item
• Separate transactions
• More detailed tracking
• Higher processing fees
• Item-specific reconciliation

Recommended: Bundle all items per bidder into single charge.

Communication Best Practices

Clear Disclosure

Transparency is essential:

Registration Disclosure:

By registering for this auction, you authorize [Organization Name] to automatically charge the credit card on file for any items you win. Charges will be processed immediately after the auction closes at [time] on [date].

You will receive an email receipt. If your card is declined, we will notify you and retry the charge. Please ensure your payment information is current.

□ I understand and agree to automatic charging

Terms and Conditions Section:

• Detailed auto-charge explanation
• Timing specified
• Failed payment process described
• Refund policy stated
• Contact information provided

Visual Indicators:

• "Auto-charge enabled" badge on auction
• Icons or indicators during registration
• Reminder messages during bidding
• Clear checkout expectations
• No surprises for bidders

Email Templates

Effective communication messages:

Registration Confirmation:

Subject: Registration Confirmed - [Event Name] Auction

Thank you for registering for [Event Name]!

IMPORTANT: This auction uses automatic payment processing. If you win any items, your credit card on file will be automatically charged immediately after the auction closes on [Date] at [Time].

You can update your payment method anytime by clicking here: [Link]

Happy bidding!

Winning Notification with Charge Confirmation:

Subject: Congratulations! You won [Item Name]

Great news! You are the winning bidder on:

Item: [Item Name]
Final Bid: $[Amount]

Your payment of $[Amount] has been automatically processed. Receipt attached.

NEXT STEPS:
[Pickup/delivery instructions]

Questions? Contact us at [email/phone]

Thank you for supporting [Organization Name]!

Failed Payment Notice:

Subject: Action Required - Payment Issue for [Event Name]

We attempted to process your payment for items you won at [Event Name], but the charge was declined.

Amount: $[Amount]
Items: [List]

Please update your payment information within 48 hours:
[Payment Update Link]

If you need assistance, contact us at [email/phone].

Thank you,
[Organization Name]

Handling Failed Charges

Common Failure Reasons

Why charges fail:

Card Issues:

• Insufficient funds
• Card expired
• Card declined by issuer
• Incorrect card information
• Card reported lost/stolen
• Security hold by bank

Technical Issues:

• Network timeout
• Processor error
• Temporary system issue
• API connection problem
• Rate limiting

Account Issues:

• Billing address mismatch
• Name mismatch
• International card restrictions
• Daily spending limit reached
• Fraud prevention trigger

Retry Strategy

Effective retry approach:

Automatic Retries:

1. First retry: 12-24 hours later
2. Second retry: 24 hours after first
3. Third retry: 48 hours after second
4. Different times of day
5. Bank processing cycles vary

Manual Intervention:

• After 3 automatic failures
• Contact winner directly
• Request payment method update
• Offer alternative payment options
• Set firm deadline

Alternative Payment Collection:

• Phone call to process card manually
• Alternative card requested
• Check payment accepted
• Bank transfer arranged
• In-person payment at pickup

Winner Communication

Professional follow-up:

Immediate Notification:

• Email sent when charge fails
• Clear subject line
• Specific problem explained
• Action steps provided
• Deadline stated

Follow-Up Sequence:

• Day 1: Automatic email
• Day 2: Second reminder
• Day 3: Phone call if possible
• Day 5: Final notice
• Day 7: Item released or other action

Maintain Professionalism:

• Friendly, helpful tone
• Not accusatory
• Offer assistance
• Multiple payment options
• Gratitude for participation

Legal and Compliance Considerations

Required Disclosures

Legal requirements for auto-charge:

Clear Authorization:

• Explicit bidder consent required
• Checkbox or signature acknowledgment
• Cannot be hidden in fine print
• Must be clear and conspicuous
• Obtained before charging

Terms of Service:

• Auto-charge process explained
• Timing disclosed
• Refund policy stated
• Dispute resolution process
• Contact information provided

PCI Compliance:

• Secure card storage (tokenization)
• No storage of full card numbers
• Encrypted transmission
• Regular security audits
• Compliant payment processor

Refund Policy

Define refund terms clearly:

Refund Scenarios:

• Item misrepresented
• Condition not as described
• Donor unable to fulfill
• Duplicate charge error
• Processing mistake

Non-Refundable Situations:

• Buyer's remorse
• Changed mind after winning
• Didn't read description
• Standard terms violations

Refund Process:

• How to request refund
• Timeframe for decision
• Refund processing time
• Partial vs. full refunds
• Communication of decision

Sample Refund Policy:

All sales are final. Refunds may be issued only in cases of material misrepresentation of items or donor inability to fulfill. Refund requests must be submitted within 7 days of auction close to [email]. Refunds, if approved, will be processed within 10 business days.

State Regulations

Compliance with local laws:

Charity Auction Laws:

• Some states have specific requirements
• Automatic payment regulations vary
• Consumer protection laws apply
• Charitable solicitation rules
• Consult legal counsel if uncertain

Payment Processing:

• Credit card surcharge laws
• State tax collection
• International transactions
• Record keeping requirements
• Consumer rights

Troubleshooting Auto-Charge Issues

Auto-Charge Not Working

Common problems and solutions:

Problem: No Charges Processing

Possible Causes:

• Auto-charge not actually enabled
• Payment processor disconnected
• Test mode still active
• Timing settings incorrect
• System error

Solutions:

1. Verify auto-charge toggle is ON
2. Check payment processor connection
3. Ensure live mode enabled
4. Review timing settings
5. Check system logs for errors
6. Contact support if persists

Problem: Only Some Charges Processing

Possible Causes:

• Card issues for specific bidders
• Selective auto-charge rules
• Payment amount limits
• Fraud prevention blocks

Solutions:

1. Review failed charge reasons
2. Check individual card errors
3. Verify auto-charge applies to all items
4. Contact payment processor about blocks
5. Retry failed charges manually

Problem: Charges Processing at Wrong Time

Possible Causes:

• Timing settings incorrect
• Time zone mismatch
• Delay setting misconfigured
• System clock issue

Solutions:

1. Review timing configuration
2. Verify time zone settings
3. Check auction close time
4. Update timing preferences
5. Test with small auction

Getting Help

Support resources:

CharityAuctionsToday Support:

• Email: support@charityauctionstoday.com
• Live chat during business hours
• Help documentation
• Video tutorials
• Community forums

Payment Processor Support:

• Stripe: support.stripe.com
• PayPal: paypal.com/businesshelp
• Square: squareup.com/help
• Transaction-specific issues
• Account configuration help

Information to Provide:

• Event name and date
• Number of affected transactions
• Error messages received
• Screenshots if available
• Steps already attempted
• Urgency level

Best Practices

Before Enabling Auto-Charge

Preparation steps:

Test Thoroughly:

• Complete test transaction
• Verify all steps work
• Check email delivery
• Test failed charge scenario
• Validate reporting

Update Documentation:

• Terms and conditions
• Registration forms
• Confirmation emails
• FAQs
• Help documentation

Train Staff:

• How auto-charge works
• Handling failed payments
• Answering bidder questions
• Manual processing if needed
• Support procedures

Communicate Clearly:

• Advance notice to previous bidders
• Clear messaging in marketing
• Prominent registration disclosure
• FAQ addressing concerns
• Support availability

During Auction

Active management:

Monitor Registration:

• Check for payment method issues
• Respond to bidder questions
• Ensure smooth registration
• Address concerns promptly

Update Bidders:

• Reminder about auto-charge
• Confirm payment method current
• Provide update link
• Answer questions

Prepare for Close:

• Verify processor connection
• Check auto-charge enabled
• Staff available for issues
• Support ready

After Auction

Post-close procedures:

Monitor Charge Processing:

• Watch charges in real-time
• Identify failures quickly
• Begin follow-up immediately
• Track success rates

Handle Failures Promptly:

• Contact winners same day
• Offer assistance
• Multiple payment options
• Professional communication

Fulfill Orders:

• Begin fulfillment for paid items
• Coordinate pickup/delivery
• Provide tracking information
• Confirm item receipt

Analyze Results:

• Calculate collection rate
• Review failure reasons
• Identify improvements
• Document lessons learned
• Plan for next auction

Conclusion

Enabling auto-charge on CharityAuctionsToday streamlines payment collection, dramatically improves collection rates from 70-85% to 95-98%, and eliminates the administrative burden of manual payment processing and follow-up. By automatically charging winning bidders immediately or at a scheduled time after the auction closes, your organization receives funds faster, reduces staff workload, and provides a seamless, modern experience for supporters.

Successfully implementing auto-charge requires clear communication with bidders starting at registration, proper configuration of timing and retry settings, a well-defined process for handling failed payments, and ongoing monitoring to address issues promptly. Always test the complete auto-charge process before your live auction, ensure your terms and conditions properly disclose automatic charging, and have support resources ready to assist bidders with questions or payment issues.

With auto-charge enabled and properly configured, you'll transform post-auction operations from a time-consuming administrative challenge into an automated, efficient process that allows your team to focus on mission-critical activities while ensuring maximum revenue collection for your cause.

Tom Kelly

Tom Kelly, TEDx speaker and CEO of CharityAuctions.com, helps nonprofits raise millions through auctions and AI. He hosts The Million Dollar Nonprofit podcast and inspires leaders to live their legacy, not just leave it.