How Long Are Pre Authorizations Good For?
Pre authorizations are a common and convenient way for businesses to manage their transactions. However, many people often wonder, how long are pre authorizations good for? Understanding the duration of pre authorizations is crucial for both businesses and customers to ensure smooth and efficient transactions.
In general, pre authorizations are good for a specific period, typically ranging from a few days to a few weeks. The exact duration can vary depending on the card issuer and the type of transaction. For instance, pre authorizations for hotel bookings are usually good for up to 14 days, while pre authorizations for rental cars can last for 30 days or more.
The purpose of a pre authorization is to temporarily hold a certain amount of funds on a customer’s credit or debit card to ensure that the business has enough funds to cover the transaction. Once the transaction is completed, the pre authorization is released, and the funds are returned to the customer’s account. However, it’s important to note that pre authorizations do not guarantee payment; they merely ensure that the funds are available when needed.
Several factors can affect the duration of a pre authorization. These include:
1. Type of transaction: As mentioned earlier, different types of transactions have different pre authorization durations. For example, pre authorizations for hotels, rental cars, and restaurants typically have longer durations compared to other types of transactions.
2. Card issuer: Each card issuer may have its own policies regarding pre authorization durations. It’s essential to check with your card issuer for specific details.
3. Merchant’s policies: Some businesses may have their own policies regarding pre authorization durations. This information is usually available on their websites or through customer service.
4. Card type: Credit cards and debit cards may have different pre authorization durations. It’s important to be aware of the differences between the two types of cards.
To avoid any potential issues, here are a few tips for both businesses and customers:
1. Verify pre authorization durations with the card issuer and the merchant before making a transaction.
2. Keep track of pre authorizations and ensure that they are released on time to avoid any unnecessary fees or delays.
3. If you have concerns about pre authorization durations, contact your card issuer or the merchant for assistance.
In conclusion, the duration of pre authorizations can vary depending on various factors. By understanding these factors and taking necessary precautions, both businesses and customers can ensure a smooth and efficient transaction process.
