Pre-authorization
Auth-onlySettlement
An authorization placed without immediate intent to capture, used to verify a card and reserve funds (typical in hotel check-in, car rental, fuel pumps). Pre-auths are released or captured later. Scheme rules govern hold duration and the maximum spread between pre-auth and final capture amount.
In practice.
Pre-auths reserve funds without taking them, standard in hotels, rentals and delayed-fulfilment models. They expire after a scheme-defined window, so capture discipline matters: capturing against a dead authorization is force-posting. Done right, pre-auth plus capture at fulfilment also reduces disputes.
Related terms: Authorization · Capture
Settlement