What are Pre-Authorization and how does it work?

What are Pre-Authorization and how does it work?

Pre-authorization, commonly known as pre-auth or auth-only, are a hold placed on a cardholder's account to guarantee access to said funds. 

For example, let's say you have a card with a $750 balance and you make a $500 purchase at a furniture store. The merchant will actually place a "pre-auth" with that amount on your card.  This is why you'll see your available balance decrease to $250 but your current balance stays at $750. Your balance will continue to remain at that amount until the merchant actually "finalizes" the transaction and charge your account for it. 

In these instances, the charge may appear twice in Pending Transactions but will be billed to your account only once. It is simply a visual cue that marks the point where the pre-authorization request was placed and the actual charge. 
Some restaurants will send a pre-auth request on your card the moment the card is put in the terminal. 
Should you require a manual confirmation on this matter, please don't be afraid to create a support ticket with our team. 

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