How are credit cards transactions processed? Learn more here:
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.
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.
Get your free quote in only 3 simple steps!