Credit card pre-authorization

Credit card pre-authorization is a new transaction method. Generally speaking, it is a way of advance payment, which can be understood as "deposit". When consumers book hotels or air tickets with credit cards, banks will first freeze part of the funds in the credit cards as a "margin" for merchants' consumption. After the consumption is completed, the merchant can officially deduct this part of the funds after the cardholder signs and confirms.

However, if the consumer fails to confirm the pre-authorization in time, the merchant can apply to UnionPay for the completion of the pre-authorization before the bank can transfer the funds to the merchant's account.

Knowledge expansion

Credit card pre-authorization refers to the transaction in which the card issuer or its agent confirms the permitted frozen amount before the deduction of the special merchant. Generally speaking, pre-authorization can also be regarded as a prepayment method close to "deposit". When a consumer holds a credit card to book a hotel, air ticket or car rental, the bank will first freeze part of the funds in the credit card as a "guarantee" for the consumer to spend in the business. Using credit card pre-authorization can not only solve the urgent needs of consumers with little cash on hand, but also reduce cash transactions.

Take the hotel "pre-authorization" as an example. When a cardholder makes a hotel reservation, especially an overseas hotel, if he makes a reservation through an overseas service website that provides hotel reservation service, sometimes the agent website does not require the subscriber to pay in advance, but sometimes it also requires the consumer to pay a sum of money in advance with a credit card.

If a sum of money is paid in advance, that is, when the agent website requires the credit card to pay in advance, the cardholder's transaction at this time is a pre-authorization transaction. If the pre-authorization amount required by the hotel is the room rate, the hotel will often conduct a "pre-authorization completed" transaction when the customer checks out, and deduct the actual consumption amount from the pre-authorization amount. At this time, the amount of credit card is really paid to the hotel, and the hotel will really receive this money at this time.

What does credit card prepayment settlement mean (is credit card prepayment settlement a deduction? )

1. What does credit card prepayment mean?

2. Prepaid settlement credit card.

3. What does bank card prepayment mean?

4. What is a prepaid credit card?

5. What does prepaid credit card mean?

6. What do you mean by prepayment?

1. Prepayment generally means that the customer directly gives the money to the service operator, in which credit card prepayment means that the funds are temporarily frozen and there is no real consumption, which is equivalent to paying a deposit for consumption.

2. Prepayment settlement is the settlement method of prepaying currency for services or products that are allowed to be provided.

3. Not all POS machines can do credit card pre-authorization transactions. UnionPay only allows a few industries such as hotels and car rentals to open this function.

4. However, prepayment settlement is a transfer, and there is a process of capital outflow.

Is there a difference between credit card prepayment and prepayment settlement?

1. Different checkout methods:

Credit card advance payment generally refers to the customer giving money directly to the service provider, in which credit card advance payment refers to the temporary freezing of funds without real consumption, which is equivalent to paying a deposit for consumption, but it is more convenient than paying a deposit, and the cardholder does not really want to take out the money.

Prepayment settlement is a settlement method of paying money in advance for services or products that are allowed to be provided.

2. Different advantages:

Compared with cash and debit cards, credit card prepayment has obvious advantages. Take the hotel as an example. When the cardholder checks in, he swipes the card at the front desk of the hotel for pre-authorization, and only freezes a certain overdraft limit on the D cardholder's card. The actual consumption deduction occurs when the cardholder leaves the hotel.

The advance payment is characterized by no amount limit; The advance payment is a part of the payment in the main contract, and the agreement of the parties on the advance payment is agreed, and the actual delivery is not an effective requirement; Advance payment is a part of the price paid in advance, which is essentially liquidation;

Advance payment has no one-way or one-way guarantee effect. If the parties fail to perform the contract and the contract is terminated, the advance payment shall be refunded. The liability of each party for breach of contract shall be determined by other provisions of this contract. If there is no liability for breach of contract, it is generally not liable for breach of contract.

Extended data:

Purpose of advance payment:

1, solve the turnover of one party to the contract++.

2, as the sincerity of contract performance.

Disadvantages of advance payment:

Not conducive to the buyer, generally used when the traded goods are in short supply. The buyer has to bear commercial risks and overstock funds, in fact, it is to provide credit to the seller; The seller receives the payment before delivery, which is beneficial to++and has no commercial risk.

There are two kinds of advance payment: one is the guarantee for the importer to execute the contract, which is usually called deposit, and the advance payment period is short, accounting for a small proportion of the transaction amount; The other is that the importer provides credit to the exporter, and the prepayment period is longer and the amount is larger.

Baidu encyclopedia-advance payment

Baidu encyclopedia-credit card pre-authorization

Can I buy a prepaid card with a credit card?

No, following the promulgation of the Measures for the Administration of Prepaid Cards by the Ministry of Commerce, the relevant person in charge of the central bank recently publicly interpreted the Measures for the Administration of Prepaid Card Business of Payment Institutions (hereinafter referred to as the Measures), which will be implemented on 10/1day. The person in charge said that from next month, it is forbidden to use credit cards to buy prepaid cards or recharge prepaid cards if the real name is more than RMB 1 000. This will help prevent prepaid cards from being used for activities such as++and redemption. However, it is forbidden to use credit cards to buy prepaid cards, which can effectively prevent the risks of prepaid card cashing and credit card cashing from being transmitted to each other. The central bank of the real-name registration system said that the prepaid card mentioned in the Measures refers to the prepaid value of goods or services issued by card issuers in a specific carrier and form that can be purchased outside the card issuers. The Yangcheng Evening News reporter learned that this kind of card refers to a multi-purpose prepaid card issued by a licensed card issuer that has obtained a payment business license and is allowed to handle the "issuance and acceptance of prepaid cards", which can be used across regions, industries and legal persons. This is different from the single-purpose prepaid card issued by supermarkets and used only within the business scope of the unit. According to the reporter, some large prepaid card companies are mainly concentrated in Beijing and Shanghai. For example, the consumer cards in Beijing market mainly include Shang Tong card issued by Zihexin and Fuka issued by Yufu Industry. Shanghai is mainly Lianhua OK card under the umbrella of Anbaili e-commerce. In addition, prepaid cards are also divided into registered prepaid cards and bearer prepaid cards. The former refers to the prepaid card that records the identity information of the cardholder in the prepaid card business processing system; The latter refers to the prepaid card that does not record the identity information of the cardholder in the prepaid card business processing system. According to the Measures, the capital limit of a single registered prepaid card shall not exceed 5,000 yuan, and the capital limit of a single unregistered prepaid card shall not exceed 1 1,000 yuan. The "Measures" require that an individual or unit that purchases a registered prepaid card or an unregistered prepaid card of more than/kloc-0,000 yuan at one time should use his real name and provide valid identity documents. The card issuer shall register the basic identity information and keep a copy or photocopy of the valid identity document. If the card is purchased under real name, the card issuer shall register the name of the card purchaser or unit, the name of the unit manager, the name and number of valid identity documents, contact information, the number of cards purchased, the date of card purchase, the total amount of cards purchased, the prepaid card++and the amount. The Measures also require that if a unit purchases a prepaid card of more than 5,000 yuan at a time, an individual purchases a prepaid card of more than 50,000 yuan at a time, or handles a prepaid card recharge business of more than 5,000 yuan at a time, non-cash settlement methods such as bank transfer should be adopted, and cash should not be used to increase the transparency of card purchase and recharge.

For the introduction of credit card prepayment, this is enough.