Qn: What is Credit Card Payment Authorisation?

Is it different from Credit Card Payment and in what circumstances will this be used?

What it is

• An instruction to the bank by the credit card holder to authorise a specified amount to be paid to the company if the product/package requested for by the credit card holder is available.
• Until we can confirm availability of what the customer requested, no deduction will be made from the credit card.
• The amount specificied will be "HELD", which means that although there is no actual deduction from your credit card yet, the specified amount that is authorised will not be available to the card holder to use unless it is released.
• When the requested package/product is confirmed, we will then "capture" the amount from the credit card as per the authorisation given. Only at this point will the amount authorised be deducted from the credit card.
•  if we are unable to confirm the requested package/product, we will not capture the payment authorised. No money has been transferred as a result.  The amount authorised will then be reinstated back to the credit limit of the card within 5-7 working days.

Why is this necessary?

• Many travel products/packages from tour operators/hotels worldwide are available only on a payment on booking basis and no confirmed reservation allowed until payment is made.
• So in these instances, the authorisation of payment by credit card by the customer would allow us to confirm the booking with our suppliers ( tour operators, hotels, transport etc) at the point of checking availability.
• This will help avoid the situation whereby the requested package/product become no longer available by the time the customer is able to make payment.