What does pre-authorization mean?

Pre-authorization refers to prepayment. The merchant estimates the cardholder’s consumption amount, and then freezes the corresponding amount in your card until you complete the consumption. , the merchant then makes a formal settlement, which is equivalent to a deposit.

A common usage scenario is a hotel. The hotel estimates the amount of consumption based on the cardholder’s check-in time, and then the cardholder pre-authorizes and pays a certain amount (the money is not actually transferred to the merchant at this time. It’s just frozen on your card). After you check out, the merchant will deduct the actual consumption amount, and the remaining frozen funds will be unfrozen.

Pre-authorization refers to the behavior of cardholders making purchases in hotels, hotels or rental companies. Consumption and settlement are not completed at the same time. Special units request authorization from the card issuer in advance through POS.

Banking business:

Pre-authorization business refers to the special merchants obtaining the cardholder’s payment commitment from the card issuer within 30 days within a certain proportion of the pre-authorized amount, and the cardholder will After a person obtains goods or receives services, the card issuer will accept the card. Generally speaking, it is a business that first freezes part of the funds in the bank card as a deposit, and then settles according to the actual consumption amount. Specifically, when a cardholder makes a purchase at a merchant, the merchant's cashier applies to the card issuer for authorization based on the cardholder's needs and the pre-estimated consumption amount. The card issuer will respond based on the customer's account situation and will temporarily freeze the approved application. The credit limit (credit card) or deposit amount (debit card) in the cardholder's bank card is used as a deposit. Generally speaking, the frozen amount cannot exceed 115 of the pre-authorized transaction amount. After the cardholder's consumption is officially completed, the merchant will request the card issuer to formally liquidate the card based on the actual consumption amount. The pre-authorization business is commonly used in hotels and hotels for card consumption, and there are usually two methods of offline and online pre-authorization. This business uses POS machines to accept transactions and is automatically verified and authorized by the card issuance system, so it is convenient, safe and efficient.

Whether it is a credit card or a debit card, pre-authorization can be performed. However, a credit card needs to have a sufficient overdraft amount, and a debit card needs to have a sufficient account balance.

If the transaction is successfully completed with pre-authorization, the cashier should print the transaction voucher and submit it to the cardholder for signature. After the cashier checks and confirms that the cardholder's signature is consistent with the signature on the back of the card, the customer's receipt of the pre-authorization completion voucher and the original pre-authorization voucher will be handed over to the cardholder.

What is a credit card pre-authorization?

The so-called pre-authorization is a transaction in which the card issuer or its agency confirms the authorized frozen limit before the cardholder makes payment. In other words, pre-authorization refers to a transaction that requires the card issuing department to make a commitment to the merchant for future payment when the customer makes a purchase because the consumption amount is undetermined. The amount of the pre-authorized transaction will be frozen, and you will not be able to participate in other transactions until the pre-authorized settlement of the corresponding transaction occurs. Credit card pre-authorization is a transaction in which the card issuer or its agency confirms the permission to freeze the amount before the special merchant debits the money. The pre-authorization will occupy the card's credit limit and will be canceled when the customer settles the pre-authorization. \If the customer does not make settlement within 30 days after the pre-authorization occurs, the pre-authorization will also be cancelled. Under normal circumstances, pre-authorization can only be completed by credit card, but some banks such as China Merchants Bank's debit cards can also be used for pre-authorization. \For example, hotels and hotels often require a certain amount of cash as a deposit for accommodation. If pre-authorized, the cardholder swipes the card at the front desk and confirms the signature, and part of the funds in the card will be frozen. This part of the funds is approximately Estimated consumption is around 115%. When the cardholder leaves, if the credit card is used to settle purchases with the merchant, the merchant will cancel the pre-authorization and release the freeze. If the cardholder ends up settling in cash, remember to ask the merchant to cancel the pre-authorization at the POS terminal. If not canceled, this part of the freeze will be automatically lifted after 30 days. \In addition to hotel reservations, bank card pre-authorization can now also be used to book air tickets online. In fact, pre-authorization means freezing part of the funds, which is equivalent to paying part of the deposit. According to bank staff, since it is mainly used for deposit consumption, the current pre-authorization business is mainly focused on hotel and air ticket bookings.

\Cardholders need to be reminded that when swiping pre-authorization, they 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. Please confirm before signing. \Common sense issues in using credit cards\A credit card is not just a card. It is actually a vehicle for advance consumption, allowing cardholders to make purchases without cash. It also has many functions such as instant cash withdrawal and online payment. . In order to promote credit cards, major banks are now waiving the first-year annual fee and giving points as gifts for every purchase, ranging from keychains to computers and TVs. However, when the bank provides you with a gift, it usually also stipulates a period within which the card must be used. \About application: Nowadays, credit card application is relatively simple. You only need to provide your address and work certificate and a copy of your ID card. Moreover, credit cards are becoming more and more perfect from business functions to appearance design, and they are becoming more and more attractive. People, so many friends open their wallets and all they have are cards. When you use it, you randomly choose a card to use it for consumption, and when it comes time to repay it, you find that you don't know which card to repay. As a result, you owe money and add unnecessary burdens. Maybe many friends are worried about this. \About annual fees: Free of annual fees in the first year does not mean free every year. Once a credit card is activated, even if it has never been used, an annual fee will be charged if it exceeds the free period. If the cardholder fails to pay the annual fee on time, the bank will automatically debit the account associated with the cardholder's credit card. If the balance in the associated account is insufficient to pay the outstanding balance, it will be treated as an overdraft consumption. After the interest-free period has passed, overdraft interest and late payment fees will be charged in accordance with regulations. At present, various banks have launched a discount that allows you to waive the annual fee for that year by swiping the card six times without a limit. The most important thing is that everyone can use this time to choose a credit card that suits you to meet your needs. \About use: Normally, one to three credit cards can meet your needs. For those who already have multiple credit cards, you should choose one or one that is convenient for repayment, has good service quality, and has comprehensive functions that suit you. Just use three cards. For friends who often go out to work, you can apply for a credit card with hotel discounts and airline mileage points, coupled with a credit card with discounts on product consumption. Fashionable friends can choose more trendy and personalized cards. In short, when applying for and using a credit card, please choose one that suits you and your needs, and act according to your ability based on your own financial situation to avoid unnecessary trouble. \About repayment: Under normal circumstances, you can repay over the counter at a bank branch. If you have no time to go to the bank for repayment due to your busy work, you can choose the additional functions of your credit card (such as the automatic repayment function of associated cards, repayment by phone, online banking, etc.) for repayment transactions. If you fail to repay within the prescribed time, the bank will charge interest and late fees in accordance with regulations. For long-term debts that have not been repaid and reminders are invalid, the bank will enter personal information into the national personal credit system, which will have an impact on your future personal loans and other credit card applications. \About security: The security of credit card consumption has not attracted many people's attention, but credit card fraud incidents occur from time to time. Now many banks have launched several consumption modes: there is a signature mode, and you can also choose a password plus signature payment method. In this way, the safety of the cardholder's funds is guaranteed to a certain extent. But in the daily consumption process, it is important to protect the security of your password and card. When the consumption is completed, please check your consumption list in time. When you enter your password > 1 time, please check the transaction list the next day to prevent repeated transactions.

Excuse me, what is Bank of China credit card pre-authorization?

Credit card pre-authorization refers to the process in which a special merchant obtains a payment commitment from the card issuer for the cardholder's expected payment amount through POS or other means. That is to say, the merchant first occupies a part of the funds before the cardholder makes a purchase. This part of the funds can be officially deducted only after the cardholder completes the purchase and signs for confirmation.

For example: for hotel accommodation, the hotel's pre-authorization will first occupy part of your credit card's balance (similar to a deposit). At checkout, the hotel will deduct it from the pre-authorization based on the actual consumption amount.

If you want to verify the actual amount deducted by the hotel, you can call the Bank of China Credit Card Customer Service Center at 4006695566. I wish you a happy card use!

The above content is for your reference, please refer to actual business regulations.

What is Bank of China credit card pre-authorization?

Bank of China credit card pre-authorization means that the merchant will stop paying a portion of the funds on your credit card before you make a purchase. After the purchase, your signature is required before the merchant can officially deduct the funds. When checking into a hotel or car rental, you do not need to pay a large amount of cash as a deposit to the hotel or rental company. You only need to pre-authorize it with a Bank of China credit card through the hotel or rental company.

The above content is for your reference, please refer to actual business regulations.

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.

How to complete bank card pre-authorization?

Bank card pre-authorization means that when the cardholder makes a purchase at a merchant, the merchant's cashier applies to the card issuer for authorization based on the cardholder's needs and the pre-estimated consumption amount, and the card issuer gives the authorization based on the customer's account conditions. For approved applications, the credit limit (credit card) or deposit amount (debit card) of the cardholder's bank card will be temporarily frozen as a deposit. After the cardholder's consumption is officially completed, the merchant will issue the card to the cardholder based on the actual consumption amount. The institution requested a formal liquidation. Generally speaking, the frozen amount cannot exceed 115 of the pre-authorized transaction amount.

Pre-authorization business refers to the special merchant obtaining the cardholder’s payment commitment from the card issuer within 30 days within a certain proportion of the pre-authorized amount, and reporting the cardholder to the card issuer after the cardholder obtains the goods or receives the service. Carry out acceptance business.

How to pre-authorize bank cards

Currently, pre-authorization services are commonly used in hotel reservations and car rentals. Whether it is a credit card or a debit card, pre-authorization can be performed. However, a credit card needs to have a sufficient overdraft amount, and a debit card needs to have a sufficient account balance.

Experts said that pre-authorization only occupies the quota. When the transaction is confirmed without "pre-authorization", the merchant cannot request settlement from the bank, so no handling fees and interest will be incurred. When the consumer formally settles the "pre-authorization", the "pre-authorization" will be cancelled, and the funds frozen by the "pre-authorization" will automatically enter the cardholder's account, and the funds will generally be returned within 24 hours. to the account. Consumers can ask the merchant to cancel the "pre-authorization" directly when checking out, and the credit limit can usually be restored immediately. If the "pre-authorization" is not canceled in time, the bank will automatically cancel the frozen limit after 30 to 45 days. However, the part of the "pre-authorized" fund limit that is frozen during this period cannot be used.

Lianlian experts reminded that the risk level of "pre-authorized" transactions is the same as that of ordinary card consumption. In order to avoid losses, if customers want to cancel their reservation, they must go through the cancellation procedures with the hotel or agency before the specified time and ask for the cancellation number as a cancellation voucher. Otherwise, the merchant will deduct the corresponding room fee as agreed, and payment cannot be refused in this case.

This concludes the introduction on how to use credit card pre-authorization and whether only credit cards can be used for pre-authorization. Have you found the information you need?