What does "PreAuthorize" do?

A Pre-Authentication allows you to run a $0.00 authorization on a card in order to verify that the address on file for the card matches the address that customer has entered (This uses the Address Verification System, or AVS). If AVS passes, then the card is processed for the total dollar amount.

When PreAuthorization is enabled, PayJunction will run a $0.00 test transaction to "see if the card works" and ensure that address matches; if it succeeds, it will automatically charge the original amount (ex. $1,000).  If the $0.00 "PreAuthorization" fails, the transaction will simply decline and will not run the full amount.

Note, PreAuthorizations will cost you as the merchant 2 authorization fees plus the regular processing rates.

To enable PreAuthorizations:

  1. Click on More >> Accounts.
  2. Select the proper Account (aka Batch).
  3. Go to Account Settings section, and click the EDIT link.
  4. Find the PreAuthorize section and toggle the button to turn ON.
  5. Click the Save Changes button.

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