What is credit card pre-authorization?

Pre-authorization is a transaction in which the card issuer or its agency confirms the permission to freeze the limit before the special merchant collects the money.

Pre-authorization will occupy the credit limit of the card. When the customer settles the pre-authorization, the pre-authorization will be cancelled. If the customer does not make settlement within 30 days after the pre-authorization occurs, the pre-authorization will be cancelled.

The operation of hotels and hotels generally requires consumption first and settlement later. Hotels and hotels often first require a certain amount of cash or request a credit card pre-authorization transaction amount from the card issuing bank as a deposit for consumption or accommodation. The cardholder's consumption or pre-authorized transaction amount at the front desk is not necessarily the final consumption settlement amount, but is only a temporarily frozen amount.

What does credit card pre-authorization mean?

Credit card pre-authorization refers to a transaction in which the card issuer or its agency confirms the permission to freeze the amount before deducting the money from the special merchant.

Credit card pre-authorization means that the merchant freezes a portion of the cardholder's funds before consumption. After the consumption is completed, the cardholder signs, and the merchant can officially deduct this part of 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.

Take the construction of a credit card as an example:

Pre-authorization is a type of authorized transaction. When you use our card to make purchases through special merchants such as hotels and websites, the merchant will pre-authorize it to me. Perform the process of requesting authorization. The types of pre-authorization include pre-authorization application, pre-authorization completion, pre-authorization revocation and pre-authorization completion revocation. The pre-authorization frozen amount is generally higher than the transaction amount. The rules for unfreezing funds after pre-authorization is revoked or completed are as follows:

1. Pre-authorization applications for debit cards and quasi-credit cards must not be processed within 30 days after the application is successful. When pre-authorization is revoked or pre-authorization is completed, the frozen funds will be automatically revoked after 30 days.

2. Apply for pre-authorization with a credit card. If the pre-authorization revocation or pre-authorization is not completed after the application is successful, the frozen funds will be automatically revoked after 15 days, and the frozen RMB funds will be automatically revoked after 30 days.

China Construction Bank official website

How to check the pre-authorization of China Merchants Bank

To check the pre-authorization, you can call the corresponding bank customer service and ask, or you can go through Check via mobile banking or online banking. If the pre-authorization is not completed after the pre-authorization is made, the pre-authorization deduction amount will be automatically released after a period of time

Pre-authorization refers to the cardholder’s consumption in a hotel, hotel or rental company. It is not completed at the same time as settlement, and the special unit requests authorization from the card issuer in advance through POS.

Notes:

1. Support card swiping and manual input

2. The purchase order should be kept properly

3. Not allowed Cancel "Pre-authorization revocation"

4. Cancel within 30 days after the pre-authorization transaction

5. Individual revocation of part of the pre-authorization amount is not supported

6. The transaction voucher is marked with the words "pre-authorization revocation"

7. If pre-authorization is added, the amount, pre-authorization number and date should be the added ones

8. No need Verify cardholder password

Extended information

China Merchants Bank credit card pre-authorization is a transaction in which the bank confirms the frozen limit before the special merchant deducts the money, which is similar to a "deposit" prepayment method , which is more common when booking air tickets or renting a car or hotel, especially overseas hotels. At the request of the merchant, the bank will first freeze a portion of the funds in the credit card as a "guarantee" for the consumer's consumption at the merchant.

Using credit card pre-authorization can not only meet urgent needs when consumers are short of cash on hand, but also reduce cash transactions.

"If you cancel your vacation booking plan, remember to ask the merchant for the cancellation number as a proof of cancellation.

"Bank staff remind that after using pre-authorization, if the processing is not canceled in time, the merchant can directly transfer the money, and the bank will generally not refuse to pay. It is necessary to consciously and proactively request or confirm that the relevant merchants immediately revoke the pre-authorization to avoid possible incidents. Financial risks.

In fact, pre-authorization can also be unfrozen in advance. According to bank staff, due to the freezing of the amount in the credit card pre-authorization transaction, the cardholder's credit limit will be reduced accordingly. amount.

If the merchant does not perform pre-authorization to complete the transaction within 30 days, the amount will be automatically unfrozen after 30 days, and the cardholder's credit limit will be restored. To restore the credit limit, generally the hotel can pre-authorize and cancel the transaction. After the transaction is completed, the credit limit will be restored immediately.

Baidu Encyclopedia - Pre-authorization

What does credit card pre-authorization mean?

Credit card pre-authorization refers to a transaction in which the card issuer or its agency confirms the authorized frozen limit before the special merchant deducts the payment. The pre-authorization will occupy the credit limit of the card. When the customer settles the pre-authorization, the pre-authorization will be used. will be cancelled. If the customer does not make a settlement within 30 days after the pre-authorization occurs, the pre-authorization transaction will be canceled by the acceptor to allow the cardholder to process the transaction. The party will put the estimated consumption amount into the transaction response and send it to the card issuer. The amount will be sent to the cardholder (the card) as the pre-authorized amount. After approval, the card issuer will put the authorization number and other information into the transaction response. Sent to the acceptor.

The pre-authorized transaction only controls the cardholder's available monthly limit. An approved pre-authorized transaction is only valid for a limited time.

Pre-authorization transactions are divided into POS pre-authorization, POS pre-authorization addition, POS pre-authorization completion, POS pre-authorization revocation, and POS pre-authorization completion revocation.

Credit card transactions. What does pre-authorization mean?

Credit card pre-authorization is a new type of transaction. To put it simply, it can be understood as a "deposit", which is a form of prepayment when you use a credit card to book a hotel or reservation. When purchasing a ticket, the bank will first freeze this part of the money for you as a "deposit" for your consumption. After the consumption is completed, the merchant can officially deduct this part of the funds after your signature confirmation, that is, pre-authorization confirmation. But if you If the pre-authorization confirmation is not carried out in time, the merchant can submit an application for pre-authorization to UnionPay, and then the bank can transfer the funds into the merchant's account.

The benefit of pre-authorization is for the merchant, it can. Try to avoid the phenomenon of missed orders. If you leave the hotel without signing the bill after completing the pre-authorization, the hotel can submit an application for pre-authorization to UnionPay, as long as it provides you with the actual consumption receipt and pre-authorization receipt. Transfer the money from your card to the hotel account.

In layman's terms, credit card pre-authorization means that the merchant freezes a portion of the funds before settling the bill on your credit card. After the consumption is completed, the merchant confirms the bill and signs the name. Only then can this part of the funds be officially deducted.

Suppose you go to a hotel, and after arriving, you tell him how many days you want to stay, and the hotel will freeze the room charges for the few days you stay from your credit card, which means you can't use it. For this money, after you confirm the bill amount when you check out and leave the hotel, the hotel will use your card to pre-authorize it, so that the actual consumption amount will be deducted from your card, and he will receive the amount you cannot The money was spent. So why do you do this? It’s to ensure that the money in your credit card is enough for the consumption you need.

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That’s it for the introduction on how to confirm credit card pre-authorization.