When checking into a hotel, the hotel requires pre-authorization, which means freezing a part of the credit card balance, equivalent to the room fee and hotel deposit.

When checking out, the hotel will need to swipe the card. At this time, swiping the card means paying the hotel room fee and other consumption charges. At the same time, the card will be swiped again to cancel the previous pre-authorization, which is to unfreeze the credit card limit.

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.

Extended information:

Credit card pre-authorization refers to a transaction in which the card issuer or its agency confirms the permitted frozen limit 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 of the pre-authorization, the pre-authorization will be cancelled.

To put it simply: Credit card pre-authorization means that the merchant freezes a portion of the funds before the cardholder makes a purchase. After the cardholder signs the payment, the merchant can officially deduct the funds.

For example, if you go to stay in a hotel, first tell the hotel how many days you want to stay. The hotel will freeze the charges for these days from your credit card and confirm the consumption amount when you check out and leave the hotel. After that, the hotel will use your card to pre-authorize it, 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 money in the cardholder's credit card is sufficient for current consumption.

Benefits of pre-authorization: It can avoid the occurrence of running orders as much as possible. 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.

Credit card pre-authorization is a new type of transaction method. In layman's terms, it is a form of advance payment, which can be understood as a "deposit". When a consumer uses a credit card to book a hotel or air ticket, the bank will first freeze part of the funds in the credit card as a "deposit" for the merchant's consumption. After the consumption is completed, the merchant can officially deduct the money after the cardholder signs and confirms the pre-authorization. This part of the funds.

However, if the consumer fails to confirm pre-authorization in time, the merchant can apply to UnionPay for pre-authorization completion, and then the bank can transfer the funds to the merchant's account.

Reference: Encyclopedia-Credit Card Pre-Authorization