I what is pre-authorization?

Pre-authorization business refers to the business of freezing part of the funds in the cardholder's bank card as deposits, and then settling according to the actual consumption amount. Specifically, when a cardholder spends money in a merchant, the merchant cashier applies for authorization from the card issuer according to the cardholder's demand and the estimated consumption amount, and the card issuer gives a response according to the customer's account. For the approved application, the credit limit (credit card) or deposit amount (debit card) in the cardholder's bank card will be temporarily frozen as deposit. The frozen amount cannot exceed 1 15% of the pre-authorized transaction amount. After the cardholder's consumption is officially completed, the merchant requires the card issuer to conduct formal liquidation according to the actual consumption amount. Pre-authorization business is widely used in hotel credit card consumption, usually in two ways: offline and online pre-authorization

Two. Influence of pre-authorization

Pre-authorization will occupy the credit limit of credit card. Although it is not the actual consumption, when the pre-authorization is implemented, the merchant has frozen the credit limit of the cardholder, and the actual available funds of the credit card will be reduced accordingly. For example, if a credit card with a credit limit of 20,000 yuan is pre-authorized by 1000 yuan, the actual available credit limit will become 19000 yuan.

After the pre-authorization is cancelled, the limit will be restored and the frozen amount in the card will be returned to the account in time. Therefore, when you need pre-authorization, try to carry a large credit card or more. If you don't have enough money after swiping your card, it will be embarrassing to swipe your card. As long as it is confirmed and operated by the merchant, the pre-authorization can be lifted, and the cardholder does not need to perform other complicated operations.

Matters needing attention in using pre-authorization

1. When using the pre-authorization function, the cardholder should pay attention to whether the amount authorized by the merchant is consistent with the amount required for deposit. In addition, we should carefully check the receipt to see if the pre-authorization is implemented. Some unprofessional service personnel tend to confuse pre-authorization with consumption, so we must check carefully when signing for confirmation. If you have any questions, you should report them to the merchants in time.

2. At the end of the deposit period, the merchants are required to cancel the pre-authorization in time and check the account status in time. Because the most frequent use of pre-authorization is probably the hotel, so we must follow up in time, otherwise once there is a problem, it is difficult to find a merchant to solve it after leaving. Moreover, after the merchant cancels the pre-authorization, remember to ask for the small ticket and keep it properly, because if the pre-authorization is not cancelled in time, the merchant can directly take away the frozen money, and this kind of self-authorization behavior is rarely rejected by the bank.