Pre-authorisation is a payment procedure that involves temporarily reserving funds on a customer's card after a payment has been approved, but before the actual capture of those funds. This method allows merchants, especially in the travel industry, to verify the legitimacy of the card and ensure that sufficient funds are available prior to finalising the transaction. The use of pre-authorisation provides advantages for both merchants and customers by improving security, reducing the chances of payment rejections, and contributing to a smoother booking process.
Pre-authorisations are commonly used in the travel industry for hotel bookings and car rentals, where an estimated amount is held to cover potential charges until the final amount is determined.
Managing pre-authorisations involves ensuring that holds are correctly applied and released, requiring effective communication with customers to prevent misunderstandings about potential charges.
- Pre-authorisation reserves funds to guarantee payment availability.
- It is used in travel bookings like hotels and car rentals.
- Clear communication and management of holds are important.
Felloh supports travel businesses in managing pre-authorisations by allowing them to place temporary holds on customer funds to secure payments before finalising transactions. This is particularly useful for bookings, ensuring that funds are available without charging the customer immediately. Felloh’s platform provides real-time tracking of pre-authorised transactions, helping businesses manage these holds effectively and reduce the risk of declined payments at the point of final settlement. This enhances cash flow predictability and improves customer experience by ensuring seamless transaction completion.
Pre-authorising a payment means the transaction amount is blocked on the customer’s card, allowing you to either approve or reverse the payment later. This feature helps reduce risk when processing payments at the quote stage or when booking high-demand travel services.
