Diagram explaining how a pre-authorization transaction works on a credit card

This is a transaction that allows a credit card's limit to be blocked for a certain period, due to the nature of the product or service being sold.

This method, preferred mainly by companies operating in sectors such as travel, tourism, and car rental, blocks an amount of the card limit equal to the service to be provided at a later date. In this way, merchants minimize their risk.

So how does a pre-authorized transaction reflect on the card?

A pre-authorized transaction only blocks the card limit. It has no effect on the card's current-period activity or statement. For a pre-authorization to be reflected on the card, a Pre-Authorization Closing transaction must be performed through a physical POS or a virtual POS.

In terms of how it reflects on the card, a closed pre-authorization has the same characteristics as a sale transaction.

If the pre-authorization closing transaction is not performed after a pre-authorization, the amount block on the card is lifted within 7-10 days, and the card's limit returns to its previous state.

How is a pre-authorization taken on the POS?

The pre-authorization menu is generally located under the Other Transactions menu on the POS. A pre-authorization can be taken by entering this menu and reading the card.

The pre-authorization flow on the POS is generally as follows:

  1. The credit card is inserted into the chip reader.
  2. The “Pre-Authorization” transaction is selected, and the “Enter” key is pressed.
  3. The pre-authorization amount is entered in the “Amount” field that appears on the screen, and the “Enter” key is pressed.
  4. The PIN is entered and the “Enter” key is pressed.
  5. The pre-authorization transaction is approved.
  6. The transaction result is printed on the receipt.

For example, if a 200 TL pre-authorization is taken from a card with a 1,000 TL limit, the card's available limit drops to 800 TL, but no debt is reflected in the card's current-period activity. Likewise, no amount is transferred to the merchant either.

Can pre-authorization be done with debit cards?

Due to their operation and structure, debit cards do not support pre-authorization. Pre-authorization can only be taken with credit cards.