A Pre-Authorization transaction starts the purchase process by confirming that the Pre-authorization amount is available on the card and then placing a hold on that amount. This is useful if the final amount of the transaction is not known. Once the final amount of the Purchase transaction is known, an Advice transaction MUST be performed to complete the Purchase process and transfer those funds to your business account.
Pre-Authorization transactions are commonly used in hotel, restaurant and car rental environments where the final amount of the sale is unknown when the card is first swiped. In these service-based environments, the Pre-Authorization transaction is often set as the default transaction started from the READY screen.
You can process a Pre-Authorization
from the (Purchase default) READY screen.
OR
You can process a Pre-Authorization from the (Pre-Auth
default) READY screen.
If you processed a Pre-Authorization transaction and no longer need to complete it (e.g. the cardholder chose another method of payment when the final amount was known) you can delete the Pre-Auth from the terminal memory to ensure that it is not completed accidentally:
If Tip Reporting is enabled, you can:
- Complete or delete the Pre-Auth from an Advice List (and record a Tip amount).
If Tip Reporting is disabled:
- Complete the transaction by using the Pre-Auth's
Original Sequence number.
- Delete the transaction by performing a Transaction
Inquiry.