Pre-authorization closing is the operation performed to turn a transaction that has a pre-authorization into a financial transaction, so that it is posted to the merchant's and the cardholder's accounts.
The pre-authorization closing transaction is approved by the POS's acquiring bank without going to the card-issuing bank. It goes out in the next day's (Outgoing) clearing file, and the issuer posts the pre-authorization closing amount to the card via its Incoming file.
Note: BKM has issued a bulletin regarding sending pre-authorization closing transactions to the card-issuing bank through the authorization flow and obtaining approval there. In the near future, pre-authorization closing transactions will be able to be processed online.
In order to perform a pre-authorization closing transaction, a pre-authorization must already have been obtained earlier, for that same card, on that same POS.
The pre-authorization closing amount can be at most equal to the pre-authorization amount. A pre-authorization closing can be done for an amount lower than the pre-authorization amount.
For example, suppose a 100 TL pre-authorization is taken on a card with a 1,000 TL limit. In this case, the card's available limit is 900 TL.
When a 60 TL pre-authorization closing is performed for this transaction,
- The 60 TL amount is posted to the card as a debit.
- The remaining 40 TL is released back, so the card's available limit becomes 940 TL.
In broad terms, the pre-authorization closing flow is as follows:
- The credit card is inserted into the chip reader
- The "Pre-Authorization Closing" transaction is selected, and the "Enter" key is pressed.
- The pre-authorization closing amount is entered in the "Amount" field shown on the screen, and the "Enter" key is pressed.
- The "Approval Code" obtained during the original pre-authorization is entered on the screen.
- The PIN is entered, and the "Enter" key is pressed.
- The pre-authorization closing transaction is approved.
- The transaction result is printed on the receipt.