Preauthorization 

Use

You use preauthorization to ensure the correctness of card data when the transaction amount can only be authorized at a later time, for example, when the delivery date (for sales documents) or the billing date (for service documents) is outside the authorization horizon. For more information, see Authorization Horizon.

Prerequisites

In Customizing, you have set the preauthorization options. In Customizing, choose Customer Relationship Management® Basic Functions ® Payment Cards ® Settings for Transactions ® Define Checking Group.

You have set an authorization horizon in Customizing.

Activities

In preauthorization, the system sends card data, including a minimum amount, for example, €1.00 – and information that it is a preauthorization, to the clearing house. The clearing house confirms whether the name, address, and card number are correct. This reduces problems for the actual authorization, which occurs at a later time.

The system attempts preauthorization until it succeeds or the authorization horizon is reached.

If the system finds a problem during preauthorization, it displays a message and you can then decide whether to accept or reject the card.