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Pre-authorisation is a key procedure in online payments that allows an amount to be temporarily blocked on the customer’s card without processing the charge immediately. Its purpose is to ensure the funds are available before completing the operation. Once verified, the amount withheld is frozen in the cardholder’s account until the merchant confirms or cancels the transaction.
By default, the pre-authorisation is valid for up to 7 days. During this period, the merchant can decide whether to confirm or cancel the amount withheld.
If no action is taken, the amount is automatically released. However, when the hold is actually released depends on the issuing bank, and may take a few additional days to be reflected in the customer’s account.
For certain sectors, such as hotels or car hire, pre-authorisations can be extended up to 30 days. This depends on the terminal settings and the conditions set by the card brands.
The final charge can never exceed the pre-authorised amount. According to PSD2, the amount initially authorised must be the maximum amount that can be charged.
Before the deadline, the merchant may:
- Confirm the pre-authorisation, processing the charge.
- Cancel the pre-authorisation, releasing the amount before the hold expires.
PAYCOMET never blocks the transaction, but you shouldn’t wait until the last day to confirm the pre-authorisation. In some cases, the actual deadline has been 6 days instead of 7 days, which can lead to delays in releasing the amount.
