Credit card pre-authorization refers to the transaction that the credit card issuer or its agent confirms the pre-authorization amount of the credit card and the special merchant deducts the money. Generally speaking, pre-authorization can also be regarded as a prepayment method similar to "deposit". So we can understand credit card prepayment as pre-authorization.
Generally speaking, the problem of credit card pre-authorization often occurs when booking hotels, air tickets or renting cars with credit cards. Banks will freeze some credit card funds according to the requirements of consumers as a "guarantee" for consumers to spend in businesses. Credit card pre-authorization is equivalent to paying a deposit, but it is more convenient than paying a deposit, and the cardholder does not need to actually withdraw money. Compared with cash and debit cards, its advantages are obvious.
Take the hotel as an example. Cardholders will swipe their cards at the front desk of the hotel for pre-authorization when they check in. D the cardholder of the resident card will only freeze a certain overdraft limit on the card, and the actual deduction will be made when the cardholder leaves the hotel. Not all POS machines can complete credit card pre-authorization transactions, and UnionPay only allows a few industries such as hotels and car rentals to open this function.
The meaning of credit card deposit refers to the funds that enterprises deposit into bank credit card accounts in order to obtain credit cards. Refers to the funds that an enterprise deposits into a bank credit card account in order to obtain a credit card. Credit cards can be used to deposit cash, but there is no interest on standard credit card deposits, and there is a handling fee for withdrawing cash (this situation is called overcharge). However, some special cards have the function of saving money, so you must read the terms before applying for a credit card, so that you can see it clearly.
Interest on credit card deposits There is no interest on credit card deposits. Banks generally do not encourage credit cards to deposit in advance. In addition, there is a handling fee for withdrawing deposits from credit cards. When the repayment amount of a credit card is greater than the amount owed, the excess will be displayed in negative numbers, which is called overpayment.
1. Over-repayment has been accumulated in the credit line, so the next consumption will be repaid first;
2. If the overpaid money is taken out, the handling fee can be repaid; The current handling fee for credit card overdraft is generally 1%/ transaction, and the minimum is 10 yuan/transaction. Some banks don't need handling fees.