A pre-auth (also known as an authorization hold, a card authorization or a pre-authorization) is the ability to hold a balance on a credit or debit card. With Spark Pay, merchants have the ability to perform pre-auths.
Who uses pre-auths?
Pre-auths are used by merchants who need to approve a charge or check for availability of funds in advance. For example, a bed and breakfast owner can perform a pre-auth to hold a reservation on a card. Or, a salon owner can use a pre-auth to charge customers who no-show for appointments.