Pre-authorization

Pre-authorization reserves funds on a customer’s card without completing the payment. You must send a manual capture request to collect the funds, or a reversal request to release the hold.

If you do not capture within the time frames described in the Capture section, the issuer will automatically release the authorization hold. Once the hold has been released, the transaction can no longer be captured.

Pre-authorization is typically used when the final amount is uncertain, for example in hospitality, car rentals, or shipping-based businesses.

You can also use pre-authorization to verify a customer’s card:

• By performing a zero-value pre-authorization, or
• By temporarily charging a low-value amount (for example, a few cents).

Low-value verification amounts appear as a pending transaction on the customer’s account and must later be reversed by you.

This method can also be used as a cardholder ownership check. For example, the customer may be asked to confirm the exact amount shown on their banking statement before you reverse the authorization.