Preauth Create

Overview

Preauthorization is the initial step in a two-step payment processes. It involves checking with the card-issuing bank to ensure that the cardholder has sufficient funds or credit available to cover a purchase. However, during this stage, the funds are not immediately transferred from the cardholder's account to the merchant's account. Instead, a hold is placed on the funds, reserving them for the pending transaction.

It is commonly employed in scenarios where the final transaction amount is uncertain, such as hotel reservations, car rentals, or restaurant bills.

Understanding Preauthorization Create

Preauthorization involves two primary steps:

1. Authorization Request: The merchant initiates a preauthorization request, typically through a Point of Sale (POS) system or an API. This request is sent to the payment processing service.
2. Bank Approval: The payment processing provider contacts the card-issuing bank to verify the cardholder's account details and whether there are sufficient funds or credit available.

Processing Preauth Create with POS and Microservices

This section outlines the steps involved in processing a preauth create using an integrated approach with a Point of Sale (POS) system and microservices:

Step 1: POS Initiates the Preauth CaptCreateure Request Using API

The process begins when a customer approaches the Point of Sale (POS) terminal, and the POS system initiates the preauth request by sending a POST request via an API to the payment processing service. This API request includes the following parameters:

Step 2: Microservice Validates and Prepares the Request

1. Request Validation: The microservice receives the preauthorization create intent from the POS system.
2. Validation Process: It conducts a thorough validation of the received parameters to ensure accuracy and validity.

Step 3: Microservice Sends Pre-Authorization Request to Terminal

1. Validated Request: Once the preauthorization intent is validated, the microservice sends the pre-authorization request to the payment terminal device.
2. Request Details: This request includes comprehensive details about the preauthorization, including the total amount, reference to the original transaction, and any other relevant information.

Step 4: Terminal Processes the Preauth

After the preauthorization operation is finished, the transaction details are displayed.

This completes the preauth create process, and the merchant successfully holds the funds for the pending transaction, ensuring a smooth payment experience for the customer.

To delve deeper into the subsequent stages of the payment process, you can explore these related scenarios:

• Preauth Capture - Learn how to capture the preauthorized funds to complete the transaction.
• Preauth Cancel - Discover how to cancel a preauthorization if needed.