A Pre-Authorization (Pre-Auth) acts as a temporary “hold” on a customer’s credit card funds without actually charging them immediately. This is commonly used by hotels, car rentals, and service providers to ensure the customer has sufficient funds to cover the final bill or potential damages. The merchant can “capture” the funds later or release the hold.
FAQs:
- How long does a pre-auth hold last?
On Stripe, a pre-authorization hold typically lasts for 7 days. If not captured by then, the hold is released. - Does the customer see a charge for a pre-auth?
They will see a “pending” transaction on their statement, which reduces their available credit limit, but it does not post as a final charge until captured. - Can I capture a partial amount of the pre-auth?
Yes, you can choose to capture less than the held amount (e.g., if the final service cost was lower than expected).
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