With Stripe Pre-authorization you can place a temporary hold on a card for up to 7 days, and the amount will always be available to capture or to refund, after no action after 7 days the full amount will be automatically refunded to the credit card holder.
A stripe pre-authorization is a transaction occurring with the Credit Card institution, validating and reserving a booking amount, on the client’s Credit Card. No funds have been transferred, only reserved.
In another word, Credit Card institutions will check the availability of the authorized amount on the customer’s credit card. Then, a hold will be placed on the card for that amount for a particular tenure.
When you make a traditional payment using a credit or debit card, the money is immediately withdrawn from your account and the purchase amount is subtracted from your available balance. Stripe Pre-authorization payments work by placing a temporary hold on the funds in your account, with the actual withdrawal of said funds taking place later on.
Stripe Pre-authorization payments can be confusing if you aren’t familiar with them, but they’re used by lots of different businesses.
What are Stripe pre-authorizations?
The whole idea behind pre-authorization payments is to make sure customers are paying for goods and services. Once a pre-authorization payment has been made, the funds for that payment are unavailable until the payment goes through. Think of pre-authorization payments as a sort of security deposit; if a customer decides they don’t want to pay, a pre-authorization payment allows you to get the money that’s owed to you. Not only does this ensure you get the money you’re rightfully owed for goods and services, but it can also save you a lot of trouble when it comes to payment processing.
Benefits Of Stripe Pre Authorization
Obviously, the biggest benefit of pre-authorization payments is the fact that they allow you to secure funds in exchange for goods and services. However, you also don’t have to worry about the hassle of things like refunds and chargebacks. If you need to give a customer a refund, you can simply cancel the stripe pre-authorization payment before the funds are actually withdrawn. This means it’s easy to provide refunds and your customers will be happy since they don’t have to wait for 3 to 5 business days for a refund.
Who Uses Stripe Pre-Authorization Payments
Pre-authorization payments are commonly used by a handful of different businesses. For example, hotels use pre-authorization payments while guests stay in hotel rooms, charging for the stay once the guest has checked out. Car rental companies will also use pre-authorization payments to ensure customers are paying for the rental and have the incentive to bring it back in good shape with plenty of gas. The security and versatility offered by pre-authorization payments make them a great solution for all types of businesses.
Hotels, B&B’s & Hostels
Hotels use stripe pre-authorization payments while guests stay in hotel rooms, charging for the stay and once the guest has checked out, they refund their charge minus costs.
Car & Vehicle Rental
Car and vehicle rental companies can use stripe pre-authorizations to make security deposits before a client takes the car, and refund it when they bring back the vehicle.
Equipment can be very expensive, before renting it out you can make a stripe pre-authorization to let customers make a security deposit, and refund when they bring back the equipment.
Launching a new product or is a product out of stock? Let customers make a stripe pre-authorization, and capture the funds later when the product is available (again).
Stripe Pre-Authorization Features
Keep track of all your pre-authorizations via the PayRequest app, see when someone’s credit card is charged, and if you have charged or refunded a stripe pre-authorization.
Stripe Pre-Authorization API
Feel also free to use the PayRequest API to automate your pre-authorizations and build them into your applications or website, also you can use Zapier to automate pre-authorizations with no code.
Send Pre-Authorizations via SMS, Email, and Whatsapp.
It is very easy to create Stripe Pre Authorizations and send them to someone’s SMS or email address or even WhatsApp.
Pre-Authorization QR Codes
Want to let your customers make a pre-authorization via their phone? Let them simply scan a QR Code and authorize the pre-authorization.
Create your first Stripe Pre Authorization
In just 5 minutes you can have your first Stripe Pre Authorization, you only need to create a free account here: http://app.payreque.st/
1. Connect your Stripe Account
When you log in on PayRequest you can just follow the onboarding where you connect your Stripe (or PayPal) account in 3 simple clicks.
2. Create a Stripe Pre-Authorization Payment Link
Via the PayRequest App, you can click on PayRequest Page, here you can choose your unique stripe payment page URL, and also add a description about your business.
3. Design your Stripe Pre Authorization
Now click on the right menu on Design, here you can upload your own logo, add a background and use your brand colors, which will be shown on the stripe pre-authorization payment link.
If you have PayRequest PRO you can even add your own Custom CSS codes to make extended changes to your page.
3. Send your Stripe Pre Authorization
Now you are done! email your Stripe Pre-Authorization link to your customer, or share it via a QR Code in person.
Still questions? contact PayRequest 24×7 via chat or email, we are Stripe Partner since 2019 and can help you even with custom stripe payment solutions.
Read more about Pre Authorizations here: https://payrequest.io/pre-authorization/