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16.2 Pre-Authorisation
A merchant who operates a Hotel, Car Rental or Cruise Line business can process a
Pre-Authorisation Transaction. Access to Pre-Authorisation menu screens (PRE AUTH) will
be available to approved merchants within these specific industry groups.
Pre-Authorisation authorises a transaction that will be completed at a later time. These
transactions can only be performed on credit card accounts.
Please note that Pre-Authorisation transactions are not available on a contactless card.
Some examples are listed below to assist in estimating your Pre-Authorisation amount:
Example 1:
A hotel may estimate transaction amounts based on:
• Cardholder’s intended length of stay at check-in time
• Room rate
• Applicable tax
• Service charge rates
• Other allowable charges e.g. mini-bar and telephone calls.
Example 2:
A Car Rental Company may estimate transaction amounts based on:
• Cardholder’s intended car rental period
• Rental rate
• Applicable tax
• Mileage rates
• Other allowable charges e.g. petrol and extra mileage.
It is important to estimate Pre-Authorisation amounts accurately as cardholder funds are
placed on hold. The completion amount should be within 15% of the Pre-Authorisation
Transaction. If the completion amount varies by greater than 15%, the terminal will display
an ‘AMOUNT NOT MATCHED’ screen. In this instance, process a completion transaction to
the value of the Pre-Authorisation, then obtain another authorisation and complete
another purchase transaction for the difference. Please note that Visa Card schemes
require the completion amount of a car rental Transaction must be within 15% of the
Pre-Authorisation Transaction or US$75.00.
The Card Issuer determines the number of days the cardholder‘s funds remain on hold. As
a guide, the funds may be held between 4 and 10 days for Australian banks but may be
longer for overseas banks.
If the terminal goes offline during Pre-Authorisation, you will receive a declined error
message as Pre-Authorisation Transactions are not processed when the terminal is offline.
Please contact the appropriate Authorisation Centre (please refer to section 1.2) for a
manual authorisation and complete the transaction using Manual Processing. An
Authorisation number must be recorded.
