As stated in our Terms of Service, users may be charged a pre-authorization fee for processing the Beambox Plug and Play device for security and validation purposes. Rest assured that this charge will not be taken from your account and will be updated soon. Updating your statement will depend on your issuing bank, and it may take 5-10 business days.
A pre-authorization fee (often shortened to "pre-auth" fee) is a temporary charge placed on a credit or debit card, typically to confirm that the card is valid and has enough available funds before completing a transaction. This is commonly used in hospitality, car rentals, gas stations, and online retail industries. Here’s how it works:
Purpose: A pre-auth fee verifies the card’s validity and secures a certain amount of funds before providing a service. This step helps businesses prevent losses by ensuring that the payment method can cover the intended transaction amount.
Temporary Hold: Instead of deducting funds immediately, the pre-auth fee places a hold on the specified amount, limiting the cardholder’s access to these funds. This hold usually appears as a "pending" transaction and is typically not yet charged to the card.
Completion or Release: After the final transaction amount is determined, the business can either capture the pre-auth amount (charging the card) or release it. If the transaction proceeds, the pre-auth fee turns into a charge. If the purchase is canceled or the total amount differs, the hold is released, allowing the funds to be available again.
Common in Hotels and Car Rentals: Hotels and car rental services often use pre-auth fees to cover potential incidentals or damages, releasing any unused funds after the service is completed.
Duration: The duration for releasing a pre-auth hold varies by bank but usually takes a few days to a week, depending on the policies of the financial institution and the merchant.
Understanding pre-auth fees can help consumers avoid confusion or unexpected limitations on their available funds when using a credit or debit card for bookings, reservations, or online purchases.