Pre-authorization only freezes the pre-authorization amount of bank cards for 30 days, and it will be automatically unfrozen after 30 days. For the cardholder, the money in the card can be used in 30 days. If the pre-authorization is completed on the POS machine within 30 days, then the real deduction will be realized and the money will enter the merchant's account.
Introduction of credit card pre-authorization:
Refers to the transaction in which the card issuer or its agent confirms the amount of the license freeze before the deduction of the special merchant. Pre-authorization will occupy the credit limit of the card. When the customer settles the pre-authorization, the pre-authorization will be cancelled. Within 30 days of pre-authorization, if the customer fails to settle the account, the pre-authorization will be cancelled.
Benefits of pre-authorization:
You can try to avoid the phenomenon of running orders. If the guest leaves the hotel without checking out after completing the pre-authorization, the hotel can apply to UnionPay for completing the pre-authorization, and provide the guest consumption documents and pre-authorization documents. So UnionPay can transfer money from the traveler's card to the hotel account.
Introduction of credit card pre-authorization operation:
Credit card pre-authorization is a new transaction method. Generally speaking, it is a way of advance payment, which can be understood as "deposit". When consumers book hotels or air tickets with credit cards, banks will first freeze part of the funds in the credit cards as a "margin" for merchants' consumption. After the consumption is completed, the merchant can officially deduct this part of the funds after the cardholder signs and confirms. However, if the consumer fails to confirm the pre-authorization in time, the merchant can apply to UnionPay for the completion of the pre-authorization before the bank can transfer the funds to the merchant's account.