Pre-authorization

Pre-authorization allows you to temporarily hold funds on a customer’s card to verify their ability to pay, without immediately charging them. The card issuer blocks the specified amount, which can later be captured when the actual transaction takes place. For example, if a customer reserves a hotel room for €400, that amount is set aside from their available credit until they check out or cancel the booking. This amount is not actually transferred to the merchant (hotel in our example).

Pre-authorization is especially useful when the final transaction amount is unknown at the time of booking. If the actual charge is less than the reserved amount, the difference is released back to the customer. If the transaction is canceled, the full hold is released. This process also helps verify card validity and available funds.

A pre-authorisation on a credit or debit card typically lasts 5 to 7 days, but it can extend up to 14 days or even 30 days for certain businesses such as hotels or car rentals. Once the transaction is completed, the hold is replaced by the actual charge; if not, the hold is released and funds return to the cardholder. The exact timing depends on both the merchant’s and card issuer’s processes.

Why use pre-authorization?

Ensure sufficient funds: Confirm the customer has enough money before providing goods or services.
Increase transparency: Both customers and merchants know funds are set aside for the transaction.
Improve conversion rates: Customers are less likely to abandon checkout if they know their card is valid and funds are available.

Use cases for pre-authorization

Reserving funds for bookings and reservations: Hotels, car rental agencies, and similar businesses use pre-authorization to hold an estimated amount on the customer’s card at the time of booking or check-in. This ensures that sufficient funds are available, even if the final charge changes later..
Delayed fulfillment: For custom, made-to-order, or backordered products, merchants pre-authorize the card when the order is placed. The actual payment is captured only when the product is ready to ship or deliver, reducing the risk of non-payment.
Risk management for high-value transactions: Handling high-value orders can use pre-authorization to verify card validity and fund availability before shipping goods or providing services. This step helps identify and decline potentially fraudulent or suspicious transactions before fulfillment.
On-demand services: Ride-sharing, equipment rental, or similar services may pre-authorize an estimated amount before the service begins. The final amount is captured after the service is completed, based on actual usage or time.
Fraud prevention: Pre-authorization can be used to screen out invalid or high-risk cards before transaction, especially the ones involving significant amounts or recurring billing.
Partial or variable charges: In scenarios where the final transaction amount is not known upfront—such as at restaurants, hotels, or fuel stations—pre-authorization allows merchants to hold an estimated amount and adjust the final charge once the total is determined.
By implementing pre-authorization, businesses can minimize financial risk, improve operational efficiency, and enhance the customer experience in situations where the final payment amount may change or where payment assurance is critical.

Supported integration types

Payment pages
UI components
Direct integration

Example: Pre-authorization API request

POST https://api.unzer.com/v1/payments/preauthorize

{
  "amount": "10",
  "currency": "EUR",
  "returnUrl": "https://www.unzer.com/de/kassenloesungen/",
  "orderId": "e79c8e90-f9a7-429e-a6e6-e9282e13594a",
  "resources": {
    "typeId": "s-crd-lkrci1vr50ke"
  }
}

{
  "id": "s-preaut-1",
  "isSuccess": true,
  "isPending": false,
  "isResumed": false,
  "isError": false,
  "card3ds": true,
  "redirectUrl": "",
  "message": {
    "code": "COR.000.000.000",
    "merchant": "Transaction succeeded",
    "customer": "Your payments have been successfully processed."
  },
  "amount": "10.0000",
  "currency": "EUR",
  "returnUrl": "https://www.unzer.com/de/kassenloesungen/",
  "date": "2025-01-07 14:13:07",
  "resources": {
    "customerId": "",
    "paymentId": "s-pay-2",
    "basketId": "",
    "metadataId": "",
    "payPageId": "",
    "traceId": "9af3e5c0307c574abfca25f046b444be",
    "typeId": "s-crd-lkrci1vr50ke"
  },
  "orderId": "e79c8e90-f9a7-429e-a6e6-e9282e13594a",
  "paymentReference": "",
  "processing": {
    "uniqueId": "31HA07BC81116A32F50B147C4067447C",
    "shortId": "6001.8558.7661",
    "3dsEci": "3DS_ATTEMPT",
    "traceId": "9af3e5c0307c574abfca25f046b444be"
  }
}