Credit Cards
Credit card payments are becoming more popular online. Find out which advantages and disadvantages this method has and what you should take into consideration.
In the payment industry, pre-authorization is the verification of electronic transaction when buying via debit or credit card. It takes place before the purchase. This step grants the dealer the certainty that the money is available for the booking.
How does the pre-authorization work?
First, the credit card existence is verified and, then, its solvability. This will reserve the order on the credit card. The duration of the reservation depends on the payment service provider, for debit cards usually between 1 to 8 days and, for credit cards, up to 30 days. During the reservation period, the pre-authorization limits the customer's credit limit accordingly. When the purchase is completed, the reserved order is authorized and debited.
