Credit card pre-authorization means that when ordering a certain product or service, the merchant temporarily freezes a certain amount before the customer uses the credit card to pay, so as to confirm whether the customer has sufficient credit limit. Pre-authorization is typically done for large transactions, high-risk transactions, or transactions that require a deposit. When a customer completes a transaction using a credit card, the merchant will request the bank to deduct the corresponding amount.

Credit card pre-authorization has certain advantages and disadvantages. The advantage is that pre-authorization can help merchants confirm the customer's payment ability and avoid risky or fraudulent transactions. Additionally, pre-authorization saves merchants time and effort by eliminating the need to wait for a transaction to be processed before confirming payment. However, the disadvantage is that pre-authorization may cause additional trouble and consumption restrictions to customers. The customer's credit limit is temporarily frozen, affecting the customer's other credit card use.

How to avoid credit card pre-authorization issues?

To avoid problems caused by credit card pre-authorization, customers can understand the merchant's transaction policy and payment method before making a transaction to ensure that they have sufficient credit limit. In addition, customers can avoid refund issues due to payment problems by understanding the merchant's refund policy in advance. Customers are advised to do more homework before using their credit card to avoid unnecessary pre-authorized transactions. In short, credit card pre-authorization is a common transaction method, but you need to pay attention to related issues and precautions to ensure the security and smoothness of the transaction.