Why card transactions demand preauthorization:
In the authorization process, Mangopay actively communicates with the cardholder’s bank (issuer) to validate a transaction. This crucial step confirms the account's existence, ensures it's not blocked, and verifies the availability of sufficient funds.
Benefits of requesting credit card preauthorization:
- Elevating customer experience:
- Informing end-customers that their card won’t be charged until items are shipped or services are used fosters trust and enhances overall customer experience.
- Reduce refund charges:
- As transactions are on hold during preauthorization, it can eliminate the need for refunds and the costs associated with them.
7 or 30-day preauthorization: Choose your term, choose your flexibility:
- Flexibility at its best: Complement feature
- Platforms can actively modify the preauthorized amount before the final capture, offering flexibility for scenarios where the initial amount may need adjustment.
- Example: A car rental platform places a hold on the rental amount. If the end-customer damages the car during the trip, the platform can modify the preauthorized amount to cover the rental and damage costs.
- No Show? No Problem: No show feature
- Platforms can confidently capture funds if the preauthorization goes unused, ideal for scenarios like no-show, or late cancellation charges.
- Example: A rental property platform places a hold on the rental amount. If the end-customer fails to show up, the platform can still capture funds for a no-show charge.
Stay informed:
For a deep dive into these enhancements, refer to our documentation.
Designed to provide more control and flexibility for both platforms and end-customers, these 7 or 30-day enhanced preauthorization features are built around your online payments needs.
If you are interested in learning more please reach out to your customer success manager or contact us.
