What does credit card pre-sale right mean?

Credit card pre-authorization refers to a transaction in which the card issuer or its agent confirms the permission to freeze the limit before debiting the money from the special merchant.

Credit card pre-authorization does not equal actual payment, but only temporarily withholds a certain amount.

Example:

When a cardholder checks into a hotel, the hotel estimates the amount of consumption based on the number of days of stay and the hotel's prepayment deposit regulations, and requires the cardholder to swipe his credit card for "pre-authorization". Deposit is required immediately. The hotel cashier took away 1,200 yuan. In fact, the money was still on the credit card and was not paid to the hotel. It was just that the amount was frozen. The POS form was blank and was not a proof of bank card deduction.

When checking out, the hotel will destroy the original blank pre-authorization POS form and proceed with the "pre-authorization completion" procedure for checkout based on your actual consumption. (Some banks call it "pre-authorization confirmation").

The "Pre-authorization confirmation" form is a new form issued by the hotel. The hotel will ask you to swipe your card again and sign again. The actual consumption amount will be deducted from the pre-authorization amount, and the remaining amount will be frozen funds. will be released. The amount swiped by the card at this time is the actual fee paid to the hotel.

Extended information:

Notes on using credit card pre-authorization:

1. Pre-authorization occupies the credit limit

Credit card pre-authorization will occupy For credit card limits, generally speaking, the pre-authorized limit cannot exceed the upper limit of the card's available limit. Once the pre-authorization is confirmed, the corresponding funds in the card will be frozen and cannot be used until the pre-authorization is canceled or repaid after use.

Because credit card pre-authorization takes up the credit card limit, in order to prevent the limit from being insufficient when the pre-authorized transaction amount is relatively large, it is recommended that cardholders bring more cash or multiple credit cards.

2. How to unfreeze the pre-authorized limit

The cardholder can request the merchant to cancel immediately after checkout. Generally, the pre-authorized limit can be restored immediately. If the cardholder does not cancel in time, the bank will generally cancel it automatically after 30 to 45 days and restore the corresponding limit.

In addition, cardholders can also convert pre-authorization into actual consumption for deduction. If you pre-authorize 1,000 yuan and only actually spend 800 yuan, the remaining 200 yuan will be automatically returned to the card.

3. Carefully check the signature issued by the POS machine

When applying for pre-authorization, you must carefully check the signature issued by the POS machine. The transaction type will be clearly marked in the type column on the signature. , if it is a pre-authorized transaction, sign after confirmation. If not, discuss with the merchant to modify the transaction type.

It is recommended that cardholders activate the SMS notification function of their credit cards so that they can know their consumption status in real time.

4. If the credit card pre-authorization is not revoked, there will be subsequent risks

It is best to revoke your credit card pre-authorization immediately after the actual transaction occurs. This is because after the transaction is canceled or completed, if If the cardholder fails to process the pre-authorization within the time specified by the merchant, the merchant can revoke the pre-authorization or perform a deduction operation, and the bank will not refuse the payment. In other words, if you do not cancel the pre-authorized transaction in time, repeated deductions may occur.

5. Protect card information such as credit card verification codes

It is not uncommon to use credit card pre-authorization to steal credit cards. This kind of theft often occurs overseas. This is because foreign pre-authorization You do not need to enter a password to authorize the transaction. As long as the other party knows your credit card, expiration date, verification code and other information, the fraud can be completed. Therefore, to prevent pre-authorization fraud, it is necessary to protect the credit card information.