PreAuth

A transaction pattern in which a cardholder’s account is checked to be in good standing, that is, the card is effective and has not reached its limit. Any applicable Address Verification Service checks have been performed and approved. If the verifications are selected, the total amount of the order is reserved against the cardholder’s account balance. PreAuths are used if goods are to be physically shipped or in other cases for which the merchant must first check whether the order can be completed. An approved PreAuth is followed by a PostAuth, which prepares it for settlement.