what does pre authorization mean please

[soph64]

what does pre authorization mean please

[sharpiemarker]

@soph64 

A temporary hold that lasts for several days to 30 days, in some cases. The value of the hold is earmarked for the purchase awaiting for the merchant to settle or capture which posts the charge as completed. If the order fails or the merchant does not settle the transaction, the hold will eventually expire and drops off, releasing the funds.

[soph64]

Thanks very much for that

[shella1]

so it means that the merchant has not verified or pinged pack to paypal that an order has gone though and they have 30 days to honour the order in the meantime the bank keeps hold of the money in limbo as the money is in my banks money payment pending folder so what happens if you cancel the order next day?

[PayPal_RebeccaN]

Hey @shella1, 

Thank you for your post. 

Also, thank you @sharpiemarker for that great information! 🙂 

Yes, @shella1 we are waiting for the merchant to confirm the order with PayPal. If you wish to cancel the order you would need to reach out to the merchant directly. PayPal cannot take any action on an authorisation until 30 days have passed. The money may show on your bank as pending until the authorisation has been completed or rejected/expired. 

Sometimes a merchant will set an order to show as 'authorisation pending' in order to check if they have sufficient stock to fulfil the order. 

I hope this helps answer your question. Have a nice day! 

Rebecca 

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