powering tour and activity businesses worldwide since 2007

Tour & Activity Industry Terms

What is a Preauth or Pre-Authorization?

Pre-authorization is not a purchase but a temporary hold on funds on a credit card.  Commonly used when purchasing an item where verification or confirmation is required prior to delivery of the goods or service.  In the case of tours or activities, a pre-authorization for a maximum value may be taken prior to a tour is taken.  Once the tour is completed, the amount used (for example if additional services are purchased during the tour) is captured.  The remaining balance on the pre-authorization is released after a pre-determined number of days.  Pre-authorization holds vary in length from 7-30 days.

Note: Rezgo Built-in Payments supports pre-authorizations with a 7 day hold limit.

Written by

Stephen is the CEO and Co-Founder of Rezgo. He has been working as a travel & tourism technology consultant since 1995. Stephen is active in fostering tourism technology and is a Past Chair of the OpenTravel Alliance. He is also a regular contributor for Tnooz, a leading travel technology media site, and speaks regularly at conferences around the Globe on travel & tourism technology, messaging standards, and industry trends.

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