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What is a pre-authorization?

pre - au - tho - ri -za - tion
noun

Pre-authorization, commonly known as "pre-auth," marks the initial phase of a transaction. At this stage, the system performs essential checks to determine if a cardholder possesses adequate funds or a valid payment method before proceeding with the final purchase. This crucial verification step serves as a foundation for a smooth and dependable payment process, ensuring that the customer can complete the transaction without encountering any hurdles.