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What is the credit card pre-authorization service? Are there risks with pre-authorization services?

When spending money out, many hotels will provide pre-authorization services. So what does pre-authorization mean? Now let me talk to you about credit card pre-authorization services.

Within 30 days after the pre-authorization occurs, the pre-authorization will be canceled; generally speaking. When a consumer uses a credit card to book a hotel or air ticket, the bank will first freeze part of the funds in the credit card as a "deposit" for the merchant's consumption. After the consumption is completed, the hotel's prepayment with the credit card can be canceled at any time, and refunds will be refunded three to five days after cancellation. Enter the account.

Hotel prepayment by credit card is also called "pre-authorization". If the customer does not make settlement: Credit card pre-authorization means that the card issuer or its agent confirms the allowed frozen limit before the special merchant deducts the money. Transaction; pre-authorization will occupy the credit limit of the card. When the customer settles the pre-authorization, the pre-authorization will be canceled. It is a method of prepayment and can be understood as a "deposit".

So after you use the service, the payment will be automatically deducted because it has been pre-authorized. This is the situation of automatic deduction. I hope it can be helpful to you.