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Pre-authorizations

Visa and MasterCard both support pre-authorizations, however they go by different names.

  • MasterCard: PreAuth
  • Visa: Estimated, Initial authorization

If applicable, the PreAuth/Estimated/Initial transaction can be followed up by incremental authorizations.

The parameter TransStatus is used to mark authorizations as 'normal-' or 'pre-' authorizations. If parameter is not set the default value is 'Normal'

TransStatus = P for estimated or initial authorizations.
TransStatus = N for normal authorizations.

PreAuth/Estimated/Initial authorization example

A guest checks in at a hotel, you may estimate the guest's total charges and obtain an authorization for the estimated amount. This estimate should be based on the amount the guest is expected to spend during the stay.

Incremental authorizations

Incremental authorizations can be used to increase the total amount if the pre-auth amount is insufficient. It must be preceded by a pre-auth, and it does not replace the original authorization but adds to the previously authorized amount. The sum of all pre-auths and increments represent the total amount that is submitted to clearing.

An increment can be requested more than once, as long as the authorization has not been submitted to clearing.

Attention

It is the first pre-authorization that is submitted to clearing, the increments should not be submitted.

See Industry specific MIT for instructions on how to initiate increments.