• Pre Authorization transaction from POS terminal

    Hello All,

    Can anyone please explain me what is the pre authorization transaction from POS Terminal. It is actually a legal thing or illegal, Does every POS will have this Option,  Iam looking for a complete information on this topic,Thank you

    Posted By:
    chitralaprashanth1

Answer

  • 1- Of course it is legal. 

    2-A credit card pre-authorization is much like any other charge to a credit card, except instead of actually debiting funds from the cardholder you just put a temporary "hold" on the funds that lasts for X days. At a technical level, the actual duration of the hold depends on the merchant classification code (MCC code); payment network; issuer bank policy's; acquirer bank policy's.

    3- Depent on acquirer bank policy; payment network; MCC; company.

    4- https://blog.dpogroup.com/how-do-pre-authorizations-work/

    https://www.westpac.com.au/business-banking/merchant-services/manage/merchant-guides/pre-authorisation/

    Answered By:
    YasinAlp

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