Pre-authorization (auth)
Two-step payments is a payment process involves the pre-authorization (holding) of the customer's funds in their own bank account to ensure further payment.
Completion of the payment process requires one of the following actions:
- Payment capture , when pre-authorized funds are debited from the customer's account to your account.
- Voiding pre-authorization , when the funds are unblocked and become available to the customer again.
Features
- Pre-authorization transactions have the "Auth" type and are displayed with this value in the merchant portal.
- Two-step payments are available for card payment method only.
- Automated capture or voiding of two-step payments within a specific period of time can be predetermined. For example, if a payment is not captured within 24 hours, it will be automatically voided. To implement this payment flow, please contact the Financial Line Support.
The advantage of two-step payment is that you have the ability to cancel the payment before it is actually made (debiting the funds from the customer's account), which reduces the costs of the commission that could be incurred if it is necessary to issue a refund for the payment.
Two-step payment use-case:
- When a customer fills out their cart in an online-shop and completes a payment, the payment amount is authorized and temporarily held on their card.
- The merchant checks whether the ordered goods are available:
- When the ordered goods are in stock, the merchant captures the payment, resulting in the held funds being debited from the customer's account.
- If the ordered goods are unavailable, the merchant voids the payment, causing the held funds to become available to the customer. In such cases, there is no need for the merchant to issue a refund or incur any additional fees.
info
Primary transactions (purchase, auth, credit, lookup, P2P) must have a unique order ID. In case the selected order ID is already set for another transaction, an error will be received when creating the order.