Pre-auth (pre-authorization) is a temporary hold placed on a customer’s funds to confirm they have enough money for a transaction. The money is not immediately deducted, but it is reserved for potential payment. Later, the merchant can either capture the amount (finalize the charge) or release it (cancel the hold).It’s commonly used in hotels, car rentals, gas stations, and online payments where the final amount may change before the transaction is completed.Think of it like a security deposit—the money is set aside but not actually spent until the final charge is confirmed.
If don't cancel or complete pre-auth transaction within 30 days (default value), the transaction will automatically cancel. The fund will be return back to the payer.