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.

Knowledge extension

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. Generally speaking, pre-authorization can also be regarded as an advance payment method close to a "deposit". When a consumer uses a credit card to book a hotel, air ticket, or rent a car, the bank will first freeze part of the funds in the credit card at the merchant's request as a "guarantee" for the consumer's consumption at the merchant. The use of credit card pre-authorization can not only meet urgent needs when consumers are short of cash on hand, but also reduce cash transactions.

Take hotel "pre-authorization" as an example. When a cardholder books a hotel, especially an overseas hotel, if the cardholder makes a reservation through an overseas hotel booking service website, the authorization will be based on the specific booking situation and the popularity of the hotel. , sometimes the agency website does not require the booker to pay in advance, but sometimes it also requires consumers to prepay an amount using a credit card.

If an amount is prepaid, that is, when the agency website requires prepayment by credit card, the transaction performed by the cardholder at this time is a pre-authorized transaction. If the pre-authorization amount required by the hotel is the entire room charge, the hotel will usually perform a "pre-authorization completion" transaction when the customer checks out, and deduct the actual consumption amount from the pre-authorization amount. At this time, the amount swiped by the card will be The actual payment to the hotel is only received by the hotel at this time.