What Are Prepaid Credit Cards?

Credit card pre-authorization refers to a transaction in which the card issuer or its agency confirms the permission to freeze the amount before debiting by the special merchant. The pre-authorization will occupy the credit limit of the card. When the customer setstles the pre-authorization, the pre-authorization will be cancelled. Within 30 days of the pre-authorization, if the customer has not settled, the pre-authorization will be cancelled.

pre-approved for credit card

Credit card pre-authorization means that the card issuer or its agent

Simply put: credit card pre-authorization is where the merchant

Credit card pre-authorization is a new type of transaction. In popular terms, it is a form of prepayment that can be understood as a "deposit". When a consumer holds a credit card to book a hotel or book an airline ticket, the bank will first freeze a portion of the funds in the credit card as a "deposit" for the merchant's consumption. After the purchase is completed, the cardholder's signature is confirmed and the authorization is confirmed before the merchant can officially deduct This part of the funding.

However, if the consumer does not confirm the pre-authorization in time, the merchant can submit an application for pre-authorization to UnionPay before the bank can transfer the funds to the merchant account.