What is Pre-authorization?

A pre-authorization is used in merchants where the final transaction amount is not yet known.

Pre-authorizations are typically used in the following scenarios:

• Hotels ; as a guest checks in but the full cost of the stay may not be known until checkout)
• Car rentals ; where the final amount may include additional milage or fuel charges
• Petrol stations ; where an authorisation check is required prior to starting to dispense fuel.
• etc

When CLOWD9 receives a pre-authorization request from a network we will follow specific steps to ensure accurate processing, compliance with network standards and a positive cardholder experience.

The sequence of steps is :

Validate Request

Perform standard authorization checks including:

• Card/Account Status Checks; including velocity checks, transaction monitoring etc
• Authorization technical checks; including CVV, AVS 3D Secure etc
• Verify available balance is sufficient to cover the estimated authorization amount
• etc

Decision: Approve or Decline

If the transaction passes all CLOWD9 checks, CLOWD9 will transmit an approved decision to the Network (On Ledger) or forward to you for your final decision.

If one or of the checks are not succesful or you provide a decline outcome, this will be sent onto the Network

If Approved, Update Available Balance

• Reduce available balance by the amount of the pre-authorization.

Manage Subsequent Financially Related Events

After the pre-authorization there may be subsequent messages that are financially related to the pre-authorization such as:

• Clearing
• Reversal (partial or full)
• Incremental authorization
• etc