What you must know about "credit card pre-authorization"

Many people may not know that credit cards have a "pre-authorization" function. Pre-authorization can be understood as "deposit". Literally speaking, it means pre-payment and pre-authorization. This kind of pre-authorization not only brings convenience to the credit card holder, but also has potential small risks. Of course, as long as you pay a little attention, you can Okay, let’s take a look at what you need to know about “credit card pre-authorization”.

1. Cancellation and unfreezing of pre-authorization

When you intend to cancel a reservation, you should request the hotel or agency to handle the pre-authorization revocation procedures within the specified period, and ask for the cancellation number as Cancel voucher. Because after using pre-authorization, if the cancellation is not processed in time, the merchant can directly transfer the money, and the bank will generally not refuse to pay. After completing the check-out, rental and other procedures, the cardholder should consciously request or confirm that the relevant merchant immediately revokes the pre-authorization to restore the credit limit and eliminate possible risks and losses.

Pre-authorization can also be unfrozen in advance. According to CCB staff, in pre-authorized transactions with CCB credit cards, because the amount is frozen, the cardholder's credit limit will be reduced by the corresponding amount. If the merchant does not perform pre-authorization to complete the transaction within 30 days, then the amount will be deducted after 30 days. The amount will be automatically unfrozen and the cardholder's credit limit will be restored. If the cardholder is eager to restore the credit limit within 30 days, generally the hotel can pre-authorize the transaction and the credit limit will be restored immediately after the transaction is completed.

Please go to the details of revocation and unfreezing of pre-authorization

2. Credit limit frozen by pre-authorization

“Whether it is network pre-authorization or hotel front desk pre-authorization, The authorization, regardless of the amount of pre-authorization, is actually still on the cardholder's card before the consumption is completed, and is only temporarily frozen. "Although the pre-authorization does not equal the actual payment, it still occupies the credit card's credit as the actual consumption. Quota. In other words, after being "frozen", your arrangement of funds may need to be fine-tuned.

However, sometimes the credit limit frozen by pre-authorization is not equal to the amount displayed when the card is actually swiped. Some banks will freeze an additional 15% of the overdraft limit based on the actual pre-authorization. Therefore, cardholders who rely on credit cards for consumption should pay special attention to making corresponding financial arrangements and preparations after pre-authorization to avoid encountering the dilemma of insufficient credit limit when making other purchases.

CITIC Bank staff also said that when applying for pre-authorization, you must carefully check the signature issued by the POS machine. If it is pre-authorization, it will be clearly marked in the transaction type column, and you must confirm it before proceeding. Sign. In addition, cardholders must activate the credit card SMS notification function so that they can be informed of your consumption at a glance. If any problem occurs during use, please contact the card issuing bank promptly.

Credit card pre-authorization is frozen and the right to use is lost for 30 days

3. Hidden functions such as hotel accommodation and credit card pre-authorization

For any transactions that have not been done online in advance Guests who pre-authorize or book a hotel through other methods are sometimes required to pay a certain amount of cash or credit card "pre-authorization" as a accommodation deposit when checking in. If you choose credit card pre-authorization, part of the funds in the card will be frozen after the cardholder swipes the card to sign at the front desk. If there is no property damage or other disputes when the cardholder leaves, most merchants will proactively use the POS machine to pre-authorize the transaction for the customer after the settlement is completed.

4. Pre-authorization affects your credit limit

Although pre-authorization does not equal actual payment, pre-authorization still occupies the credit limit of your credit card like actual consumption. Generally speaking, the pre-authorization 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 the credit limit will be reduced by the corresponding amount. This amount will be "frozen" in a short period of time before the actual consumption amount is deducted at checkout or the merchant revokes the pre-sale right. When the customer settles the pre-authorization, the pre-authorization will be cancelled.

What does credit card authorization mean?

Credit card pre-authorization means that the merchant freezes a portion of the cardholder's funds before spending. After the cardholder signs the payment, the merchant can officially deduct the funds.

For example, if you go to a hotel and tell the hotel how many days you want to stay, the hotel will freeze the charges for these days on your credit card. After you confirm the consumption amount when you check out and leave the hotel, the hotel will use your credit card. The pre-authorization is completed on your card, so that the actual consumption amount will be deducted from your card, and the hotel will receive this part of the payment. The reason for this is to ensure that the cardholder's credit card has enough money for current consumption.

For hotels, they can try to avoid the phenomenon of running orders. If the guest leaves the hotel without paying the bill after completing the pre-authorization, the hotel can apply to UnionPay to complete the pre-authorization and provide the guest's consumption receipt and pre-authorization receipt. In this way, UnionPay can transfer money from the guest's card to the hotel account.

What is a credit card?

Credit card (English: creditcard) is also called a credit card. It is a non-cash transaction payment method and a simple credit service.

A credit card is generally a special carrier plastic card with consumer credit that is 85.60 mm long, 53.98 mm wide, and 1 mm thick. It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front and a magnetic card on the back. strip, signature strip.

Credit cards are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when making purchases with the credit card, and repayment will be made on the billing date (English: billing date).

On April 15, 2016, the central bank issued the "Notice of the People's Bank of China on Matters Related to Credit Card Business", canceling late payment fees on credit cards, introducing liquidated damages, and prohibiting over-limit fees. The new regulations were implemented in January 2017 It will be officially implemented on the 1st.

The debit card is an ordinary savings card. The account attribute is a current deposit account, which can be used for consumption, ATM deposits and withdrawals, etc.; the credit card can be used for consumption, ATM deposits and withdrawals, etc. The biggest advantage is that it can Overdraft (with a certain credit limit)

Generally, bank cards are divided into two types: credit cards and debit cards.

Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the card-issuing bank gives the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and repay later. A quasi-credit card refers to a credit card in which the cardholder first deposits a certain amount of reserve fund as required by the bank. When the reserve fund is insufficient to pay, the cardholder can overdraw within the credit limit specified by the card-issuing bank.

Debit cards are divided into transfer cards, special cards and stored-value cards according to different functions. Debit cards cannot be overdrawn. Debit cards have the functions of transferring money, depositing and withdrawing cash, and spending money. A special card is a debit card used in a specific area and for special purposes (referring to purposes other than department stores, restaurants, and entertainment industries). It has the functions of transferring funds, depositing and withdrawing cash. A stored-value card is a prepaid wallet-style debit card in which the bank transfers funds to the card for storage at the request of the cardholder and directly deducts funds from the card during transactions.

A summary of credit card pre-authorization query methods

Credit cards are used more and more, and they are also one of the must-have items for many people when going out. Since it is a necessity, of course we must understand it Okay, but what is bank card pre-authorization and how to check credit card pre-authorization? My little friend is really confused about the two-foot-old monk, so I’ll help you summarize it.

1. When a pre-authorized transaction occurs, the cardholder can make a credit card pre-authorization inquiry at any time by logging into the card-issuing bank's online banking. Credit card pre-authorization refers to a transaction in which the card issuer or its agency confirms the authorized frozen limit before the special merchant debits the money.

2. You can also call the credit card center to inquire about pre-authorization. If the "pre-authorization" is not canceled in time, the bank will automatically cancel the frozen limit after 30 to 45 days. It is worth noting that during this period, the frozen part of the "pre-authorized" funds cannot be used.

3. A bank staff member explained that when the consumer formally settles the "pre-authorization", the "pre-authorization" will be canceled and the funds frozen by the "pre-authorization" will automatically enter The funds will generally be returned to the cardholder's account within 24 hours.

4. The pre-authorization amount can be checked on the credit card website. Generally, it will not be displayed immediately. Banks have their own accounting days. The earliest you can check is the day after the pre-authorization. If it is later, it will take 3 days. , 4 days, if it is pre-authorized abroad, it will take longer.

Where to set the credit card app authorization?

Set it in the phone settings App permissions.

Click on the phone settings, find applications and services, click on the credit card app you want to view, view the permissions, and cancel the location information, camera, etc. that you do not want to be authorized.

That’s it for the introduction of credit card authorization.