Card pre-authorization can be a pretty useful functionality depending on your business model (ex: boat rental involving a deposit, final amount of a service unknown at service subscription).
It is a way to ensure that the debit/credit card is actually valid, but above all a way to block a specific amount (deposit for example) on the card, for a maximum period of 6 days from the pre-authorization date.
A card pre-authorization results for your client into the blocking - during the pre-defined pre-authorization period - of the pre-authorized amount, either on the credit limit of the card for credit cards, or as a deduction from the balance of the bank account to which the card is linked for debit cards.
A card pre-authorization results in your Enterprise Back-Office in a card transaction (Money-In) with a Waiting Approval status.
You then have two different options:
• actually debit (with certainty of success except if the card is expired, opposed, etc.) the card totally or partially within the pre-reservation period, which will move the pre-authorized operation status from Waiting Validation to Success in your Enterprise Back-Office, and modify the pre-reserved amount in case the debited amount is lower than the pre-reserved amount. For your client, this will result in the cancellation of the amount reservation (credit card) or in the replacement of the pre-authorized transaction amount by the debited amount on the client banking interface/bank statement (debit card); or
• do nothing, which will cancel the pre-reservation and free up the credit limit (credit card) or cancel the debit on the client bank statement (debit card)
The pre-authorization functionality is activated/initialized by Lemon Way, upon your request (Submit a New Request button located in the Header of the Lemon Way Support Center).
The activation applies to your whole Enterprise environment, so that all transactions will be pre-authorized by default (you still have the possibility to validate each transaction right after it is pre-authorized through the API, with no impact on your client/you).
For more information on card pre-authorization and how to configure it in your Enterprise environment, take a look at our API documentation.