What is Trading Authorization?

Pre-authorization refers to the cardholder's consumption at a hotel, hotel, or rental company. Consumption and settlement are not completed at the same time. The contracted unit asks the card issuer for authorization in advance through POS.

Pre-authorization

Pre-authorization refers to the cardholder's consumption at a hotel, hotel, or rental company. Consumption and settlement are not completed at the same time. The contracted unit asks the card issuer for authorization in advance through POS.

Chinese name

Pre-authorization

Foreign name

pre-authorized debit

Category

Financial transaction

Features

Bank business

Pre-authorized business refers to the business in which a special merchant obtains a payment commitment from the card issuer within 30 days of the cardholder's pre-authorized amount within a certain range, and the card issuer accepts the goods after receiving the goods or services. In simple terms, it is the business of freezing part of the funds in the bank card as a deposit, and then settling according to the actual consumption amount. Specifically, when the cardholder consumes at the merchant, the merchant cashier applies for authorization from the card issuer according to the cardholder's demand and the estimated consumption amount. The card issuer will respond according to the customer account situation, and the approved application will be temporarily frozen. The credit limit (credit card) or deposit amount (debit card) in the cardholder's bank card is used as a deposit. Generally speaking, the frozen amount cannot exceed 115% of the pre-authorized transaction amount. After the cardholder's consumption is formally completed, the merchant requests the card issuer to conduct formal liquidation according to the actual consumption amount. The pre-authorization service is generally used for credit card consumption in hotels, and there are usually two ways of offline and online pre-authorization. This business is convenient, secure, and efficient because it accepts POS equipment and is automatically verified and authorized by the card-issuing system.

Both credit and debit cards can be pre-authorized. But the credit card needs to have sufficient overdraft amount, and the debit card needs to have sufficient account balance.

The pre-authorization completes the transaction successfully. The cashier should print the transaction voucher and sign it to the cardholder. After the cashier checks and confirms that the cardholder's signature is the same as the signature on the back of the card, the customer returns the pre-authorized voucher and the original pre-authorized voucher to the cardholder. ^[1]

Pre-authorized transactions are divided into POS pre-authorization, POS pre-authorization addition, POS pre-authorization completion, POS pre-authorization revocation, and POS pre-authorization completion and revocation.

Pre-authorized transactions are used to accept transaction permission from card issuers to cardholders. The receiving party puts the estimated consumption gold in the transaction response and sends it to the card issuer. The amount is sent as a pre-authorized amount to the card issuer (the card). After the issuer approves, the authorization number and other information are placed in the transaction response and sent to the acceptor.

Pre-authorized transactions simply control the amount of months available to cardholders. Funds are settled by pre-authorization. An approved pre-authorized transaction is only valid for a limited time.

1. Support credit card and manual input card number

2. The purchase order should be properly kept

3. No cancellation of "pre-authorization revocation" allowed

4. Cancellation within 30 days after pre-authorized transactions (including additions)

5. Separate cancellation of some pre-authorized amounts is not supported

6. The transaction voucher is marked with "pre-authorization revocation"

7. For additional pre-authorization, the amount, pre-authorization number and date should be

8. No need to verify cardholder password

9. Applicable when the guest switches to another payment method, cancels the check-in, or the pre-authorization operation is wrong

The so-called "pre-authorization" is, in popular terms, that when the cardholder stays at the hotel, the hotel estimates the consumption amount according to the hotel's prepayment deposit rules based on the number of days of stay, and requires you to swipe your credit card for "preauthorization", that is, to pay the deposit. The cash register at the hotel wiped away 1,200 yuan. In fact, the money was still on your card and was not paid to the hotel, but the amount was frozen. The POS slip was blank, not the proof of bank card debit.

Upon check-out, the hotel will destroy the original blank pre-authorized POS slip, and re-check the "pre-authorization completed" according to how much you have actually spent. (Some banks are called "pre-authorization confirmation").

The "pre-authorization confirmation" form is a new form issued by the hotel. The hotel will ask you to swipe the card again and sign again. The actual consumption amount will be deducted from the pre-authorization amount and the remaining frozen funds will be released. At this time, the amount of credit card is the actual payment to the hotel.