How to Use Pre-Authorization Payment Gateway
Learn how to use the pre-authorization gateway PayRequest, to create a pre-authorization payment so that you can hold the funds and process the payment later.
What is a Pre-Authorization Payment?
A pre-authorized payment, allows you as a merchant and business owner, to put a temporary hold on a number of funds in a customer’s account. It is sometimes easier to think of it as prior approval of payment, with the official transaction of funds happening later on.
Pre-authorizations can prove very useful for a variety of different businesses. This includes particularly anyone in the hospitality industry, such as hotels and event organizers, but also car rental companies, online merchants, and basically any business that requires accepting payment prior to providing the goods or services.
Why are Pre-Authorization Payments Helpful?
As previously mentioned, pre-authorized payments let you put a hold on a certain amount of funds. This acts as a kind of safety net, or security deposit meaning that the funds cannot be touched until the payment is processed. This is one easy way to ensure that your customers are paying for their goods and services.
Pre-authorization payments allow you to sift out fraud from genuine customers. If a customer decides they do not want to pay, pre-authorization payments provide you with the security of getting the money that you are owed.
Pre-authorized payments are great not only for securing payments but also for easing the troubles that come from cancelations and refunds when requested by a customer. With pre-authorized payments, you can simply cancel the payment before it is withdrawn. Your customer will have access to the funds again and you will not have to spend time sorting out refunds and chargebacks.
Pre-Authorizations with PayRequest
With PayRequest, sending your pre-authorization payments is made simple. Once you are signed in and have created your pre-authorized payment, simply copy the link, and send it to your customer however it suits you (email, social media, SMS, and so on). Sending pre-authorization payments has never been easier.
Sign up today to start sending your pre-authorization payments!
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