What is a credit card pre-authorisation?

A credit card pre-authorisation is a temporary hold on a specified amount of funds on a customer's credit card, ensuring the availability of funds for a future transaction.

How long does a pre-authorisation last?

The duration of a pre-authorisation hold can vary, but it typically lasts between 3 and 7 days, expiring automatically after this period. This duration can vary depending on the card issuer's policies and the type of transaction, and RoomRaccoon has no influence on it.

Can a pre-authorisation amount be changed or cancelled?

No, the amount of a pre-authorisation cannot be changed nor cancelled once it has been placed. The original pre-authorisation must expire first so a new one can be initiated.

Does a pre-authorisation charge the customer's card?

No, a pre-authorisation does not charge the card, meaning it is not a completed transaction. It merely places a hold on the funds. The actual charge occurs if you perform a Cardholder-not-present (CNP) charge.

Do pre-authorisations affect the cardholder’s available balance?

Yes, the pre-authorisation amount is deducted from the cardholder’s available credit or funds, reducing their available balance until it expires and is released back to their bank account. It is important to understand that it does not mean the guest will have the funds available right after the pre-authorisation expiring - this will depend on how fast the card issuer (guest’s bank)  makes it available again after receiving the expiration confirmation form the acquirer (our payment provider).

What is the maximum amount that can be pre-authorised?

If the reservation has a due amount to be collected, you will be able to pre-authorise up to that amount.

If a guest has already paid their full balance at check-in or even before that, you can still place a pre-authorisation on their stored card for up to €300 / £300 / $300. This helps cover extra charges like damages, additional services, or cleaning fees.

 If you want to pre-authorise more than €300 / £300 / $300, you’ll need to create an add-on with a description of the charge and pre-authorise the card.

Are there fees associated with pre-authorisations?

No, in RoomRaccoon pre-authorisations do not incur any fees because it is not a complete transaction, it is just funds being held for a period of time. 

How to make a pre-authorisation?

1. First, you must make sure that the booker has a credit card available on their profile and an email filled in.

2. On the bottom right of the reservation, click on the Pre-Authorisation tab.

3. Insert the amount you wish to pre-authorise and click on the green button "Pre-Authorise Credit Card".
   

4. The pre-authorised amount will be displayed under the payment section in orange, with the possibility to Capture the amount on hold until it expires.
   

What happens if the amount to charge differs from the pre-authorised amount?

1. If the amount to charge is higher than the pre-authorised amount, you can Capture the pre-authorised and then charge the remaining amount on the Credit Card Charge tab.

2. If the amount to charge is lower than the pre-authorised amount, you should not capture it. Instead, you can proceed to charge on the Credit Card Charge tab or send a payment request so that the guest can make the payment.

Is it possible to pre-authorise debit cards?

No, only credit cards can also be pre authorised. If you try to pre authorise a debit card, it will perform a direct charge in the guest's card.

Why do pre-authorisations sometimes fail?

Pre-authorisations can fail due to insufficient funds, expired cards, incorrect card details, or the card issuer's security policies.