Top high-risk merchant account often requires some forms of credit card authorizations from their users. These authorizations can be described as a general term for a transaction that was processed through a credit card network such as American Express, MasterCard or Visa card. In most cases, these authorizations are request types which depend solely on the need of the payment gateway for high risk. In this article, we shall look at the common forms of credit card authorizations available for all merchant account owners. These authorizations include but are not entirely limited to pre-authorizations, purchases and captures and the level of similarities they share.
This is also known as “auto-only” or “Preauth.” Most processes of pre-authorization place a hold on the customer’s credit card for the desired amount. Once the credit card is verified, the merchant will be provided with an “approval code” which can be used later. The funds available in the high-risk merchant account are now frozen by the credit card. In case you want to use the funds available in the card, a certain amount will be charged to the customer by the high-risk online payment processing. The customer will not see the transaction occur but the amount deducted will be registered in their available balance. These funds are available to the merchant for 7 days. During this time the merchant account holder is expected to process a Capture of the funds or lose them. The approval code issued after a successful pre-authorization is valid for up to 30 days. Please note; the funds on the credit
Capture or “force” is the second step of the pre-authorization process. During this time, the merchant, by utilizing the original Approval code from the pre-authorization process will inform the card-network of the need for the customer to be billed. The high-risk merchant account processing will be able to choose the best final capture amount which can be less or more than the original amount charged during Pre-auth. Peradventure the said amount is more than the initial amount charged by the payment gateway for high risk, the capture will be declined, and the remaining funds will be automatically made available to the customer.
Purchase (auth+capture) is the most common payment types as far as high-risk business payment gateway is concerned. It can be described as a combination of pre-authorization and capture. During this combination, a merchant is expected to provide the desired amount, and the customer’s card will be charged. Purchases take care of the need to engage in any form of pre-authorization or capture since the two processes have been well represented.
The best high-risk payment processor will always offer you the best forms of authorization for all your high-risk merchant business. Kindly contact us if you have any questions for our distinguished team of experts, we will love to hear from you. Kindly share this article with friends and family members.