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What is a pre-authorization?
What is a pre-authorization?

Preauthorization, BDP, bail bond, bank

Elena avatar
Written by Elena
Updated over a week ago

A pre-authorization is a "charge pending confirmation" which is made on the traveler's card to ensure that the card is valid and has sufficient balance.

This operation allows an amount to be blocked on the card for a maximum of 10 days:

  • The traveler will still see the amount on his account, but it will not be available for use because it will be blocked by the pre-authorization.

  • During those 10 days, you can choose whether to capture/confirm the pre-authorization (charge the pre-authorized amount) or release/cancel the pre-authorization.

  • If after 10 days you have not taken any action, the pre-authorization will be automatically released and the traveler will have the amount available.

Pre-authorization costs:

In case you have not captured the amount, this operation has no cost.

If you have decided to charge it, the cost will be 2% for all credit cards in the SEPA circuit or 4% for those outside it. (no hay enlace en ingles).

Pre-authorization concept:

Normally, it is usually used to pre-authorize "the deposit" of the reservation.

The maximum amount that you can pre-authorize as a deposit, cannot be greater than the total amount of the reservation.

How can I collect a pre-authorized amount?

Within the booking details in the BDP Collection Summary section under "Actions", you will have two options:

  • A red X if you want to release/cancel the pre-authorization before the 10-day deadline.

  • A green ✔ if you want to confirm the pre-authorization.

You will be able to choose whether you want to collect partially or fully the pre-authorized amount by indicating the amount and clicking on the confirm button.

How long will it take for the guest to see the pre-authorization amount released?

Up to 21 working days (excluding holidays and weekends) from the time the amount is released. However, each bank has different deadlines, so we recommend that the cardholder also check with the bank to make sure.

In the case of pre-authorization on pre-paid credit cards, the pre-authorization amount is not automatically refunded, as with traditional credit cards. The card issuer (the bank) must perform the operation manually. We advise the cardholder to inform his bank that AvaiBook has cancelled the transaction, specifying the date and time. In this way, it will be possible to speed up the refund operation.

You can consult our entire knowledge base sorted by collection, and see all that our plans can offer you.

We also invite you to visit our blog and youtube channel where you will find Webinars and news with general content about the sector.

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