--- title: "What are credit card pre-authorizations for? | Helcim Learn" slug: "what-are-credit-card-pre-authorizations" description: "Learn what a credit card pre-authorization is, why businesses use them, and what it means to capture a preauthorization." updated: 2025-06-03T16:46:30Z published: 2025-06-03T16:46:30Z canonical: "learn.helcim.com/what-are-credit-card-pre-authorizations" --- > ## Documentation Index > Fetch the complete documentation index at: https://learn.helcim.com/llms.txt > Use this file to discover all available pages before exploring further. # What are credit card pre-authorizations? A credit card pre-authorization is a temporary hold on a customer's funds, ensuring that money is available for a future transaction without actually charging them yet. Think of it as a reservation for a payment—typically used when the final transaction amount might vary, or where a security deposit is needed. This article will explain what pre-authorizations are, why and when businesses use them, and how they need to be captured. --- **In this article** - [What is a pre-authorization?](/v1/docs/what-are-credit-card-pre-authorizations#what-is-a-preauthorization) - [Why do businesses use pre-authorizations?](/v1/docs/what-are-credit-card-pre-authorizations#why-do-businesses-use-preauthorizations) - [When to use a pre-authorization](/v1/docs/what-are-credit-card-pre-authorizations#when-to-use-a-preauthorization) - [Capturing a pre-authorization](/v1/docs/what-are-credit-card-pre-authorizations#capturing-a-preauthorization) - [Next steps](/v1/docs/what-are-credit-card-pre-authorizations#next-steps) - [FAQs](/v1/docs/what-are-credit-card-pre-authorizations#faqs) --- ## What is a pre-authorization? --- A pre-authorization is an initial hold placed on a customer's credit card by a merchant for a specific amount. This hold verifies that the funds are available and reserves them for a future transaction. | ![](https://cdn.document360.io/4e721329-1a9d-4ef0-8d2f-497e0c1f185a/Images/Documentation/pencil-white.png) | Pre-authorizations are not an actual charge, so the funds aren't transferred to your bank account yet. | | --- | --- | The pre-authorization tells you that the customer has sufficient credit or funds to cover the potential charge. - **Temporary hold**: Funds are set aside, but not debited from the customer's account. - **Validity**: Pre-authorizations typically have an expiry period, often around 7 days. After this, they are automatically released if not captured. ## Why do businesses use pre-authorizations? --- Businesses use pre-authorizations primarily to mitigate risk and manage variable transaction amounts. | ![](https://cdn.document360.io/4e721329-1a9d-4ef0-8d2f-497e0c1f185a/Images/Documentation/sparkle.png) | It gives you peace of mind knowing that funds are available before you provide a service or product where the exact cost isn't known upfront, or where there's a risk of damage or cancellation. | | --- | --- | ## When to use a pre-authorization --- Pre-authorizations are incredibly useful in several scenarios. Here are some common examples: - **Hotels**: When a guest checks in, a hotel might pre-authorize their card for the room rate plus an estimated amount for extras like room service or mini-bar charges. The final charge is only processed at check-out. - **Car rentals**: Rental car companies commonly pre-authorize a customer's card for the estimated rental cost plus a security deposit to cover potential damages or extra charges. - **Restaurants with tabs**: For large groups or events, a restaurant might pre-authorize a card to cover the estimated bill, then capture the exact amount once the meal is complete. - **Service businesses (e.g. home repairs)**: If you provide a service where the final cost depends on parts or labor, a pre-authorization can ensure funds are available before work begins. - **Delivery services**: For food or grocery delivery, a pre-authorization can account for potential changes in the order total or unforeseen fees. ## Capturing a pre-authorization --- If funds are “reserved”, how does a final payment occur? Well, to complete the transaction and collect the payment, you need to "capture" the pre-authorization. This action finalizes the transaction and charges the customer's card. You can capture the full pre-authorized amount or a partial amount, depending on the final cost of your goods or services. Once captured, the transaction will appear as a completed sale in your transaction list. - **Completion**: Capturing a pre-authorization moves the funds from a temporary hold to a completed charge. - **Flexibility**: You can capture the full amount or a partial amount of the original pre-authorization. - **Expiry**: Remember that pre-authorizations typically expire after **7 days**, so you'll need to capture the funds before then. If a pre-authorization expires, you’d need to create a new one if you still wish to charge the customer. ## Next steps --- Now that you understand what pre-authorizations are and how they need to be captured, the next step is to learn how to create them in your Helcim account. - [How to create a pre-authorization](/v1/docs/create-credit-card-pre-authorizations) ## --- ### FAQs **How long does a pre-authorization last?** Pre-authorizations on the Helcim platform are valid for 7 days. After this period, if the pre-authorization hasn't been captured, it will expire. **Is a pre-authorization the same as a charge?** No, a pre-authorization is not the same as a charge. A pre-authorization is a temporary hold on funds to verify availability, while a charge is the actual debiting of funds from the customer's account and transfer to your business. **Can I capture a partial amount?** Yes, when you capture a pre-authorization, you can capture the full amount or a partial amount, as long as it's within the original pre-authorized amount.