What does Partial Authorization mean? A Detailed Guide
Partial authorization is a type of transaction where only a portion of the requested funds is approved by the card issuer. This can happen when the available balance on the card is less than the amount of the transaction, or when the card issuer has set a lower limit for the transaction. In some cases, the merchant may choose to accept the partial authorization and complete the transaction for the approved amount. In other cases, the merchant may choose to void the transaction and ask the customer to use another form of payment.
What types of cards will partial authorizations occur on?
Partial authorization can occur on any type of payment card, including credit cards, debit cards, and prepaid cards. It can also occur with other types of payment methods, such as electronic bank transfers or mobile payments. Factors that can contribute to a partial authorization include the available balance on the card, the card issuer’s policies, and the merchant’s acceptance policies. Some merchants may have specific rules in place for handling partial authorization transactions, such as only accepting partial authorization for transactions above a certain amount.
Are partial authorizations supported for all card brands/types?
Most card brands and types support partial authorization, although the specifics of how partial authorization is handled can vary between brands and types. In general, when a partial authorization is requested, the card issuer will check the available balance on the card and the cardholder’s credit limit (for credit cards) to determine whether the requested amount can be approved. If the available balance or credit limit is insufficient to cover the full amount of the transaction, the card issuer will approve a portion of the requested amount. The merchant can then decide whether to accept the partial authorization and complete the transaction for the approved amount, or to void the transaction and request an alternative form of payment.
When Partial Authorization Reversals Occur?
A partial authorization reversal is a transaction that cancels a previous partial authorization and releases the reserved funds back to the cardholder. Partial authorization reversals can occur for a variety of reasons. For example, a merchant may issue a partial authorization reversal if the customer decides not to complete the transaction, or if the merchant is unable to complete the transaction for the approved amount. In such cases, the merchant can request a partial authorization reversal to cancel the previous partial authorization and release the reserved funds back to the cardholder.
Partial authorization reversals can also occur automatically if the merchant does not complete the transaction within a certain timeframe. This is known as an automatic reversal, and it is designed to protect the cardholder’s funds by releasing them back to the cardholder if the merchant does not complete the transaction in a timely manner. The specific timeframe for automatic reversals can vary depending on the card brand and the merchant’s acceptance policies.