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Two step Pre-Authorize/Capture payment process

Pre-Authorize-Capture 2 step Credit Card process.

This transaction type is typical for Hospitality and Car Rental industries where businesses do not have practical way to get paid after service provided.
Pre-Authorize/Capture is a two step payment:

  1. Pre-Authorize - your bank takes money from your card and sets it aside waiting for signal from merchant.
  2. Capture or Refund - merchant asks bank to reverse (Refund) or charge (Capture)
  3. If merchant does nothing it is reversed (Refunded) after 30 days.
What if customer disagrees with the charge later?
Customer opens bank web site and click dispute button to charge-back credit card - bank refunds money first, then looks at the case to decide.

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