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  1. #1

    Lightbulb Pre-Authorization ?

    My que is regarding "Pre Authorization" OR "Charging rebilling amount in advance".

    Doing "Pre authorization" & by what amount, is that decided by the billing companies such as ccbill, ibill OR its in the hands of Websites (webmasters).

    What's the technical thing behind this? I request Ecommerce experts & webmasters to please put some light on it.

    Thanks

  2. #2
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    Hi Boyatny,

    I'm not 100% sure I understand your question but to explain on pre-auths... a pre-authorization takes place when a credit card is authorized but not yet captured/settled.

    For instance, if a merchant charges $100 to a customer as a pre-auth, that customers credit line will only be temporarily reduced by $100 - but they will not have been actually charged permanently yet for the sale.

    Only when the charge is then captured & settled - does the cardholder actually have that amount permanently deducted from their credit line. And it is also at this point that the funds transfer process begins from the issuing bank to the acquiring bank and then to the merchant's local bank account.
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  3. #3
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    I think he might be speaking about the specific companies? From what I can remember at the conventions with CCBill, that is determined by CCBill on an algorithm at what the webmaster charges actually.

    CCBill is mainly for adult processing and they have their own way of processing, authorizing etc. Stay away from iBill - they have had numerous problems since they have not been able to obtain a new processor.

  4. #4
    Actually I tried to join the the adult website powered by 'CCBILL'. I had more than enough funds in my Credit card account for this transaction but while joining i was cont. getting an error "insufficient funds" and my card was getting declined, then i loaded some more funds into it & this time it got approved. Now I would like to know does every website authorizes the charge for next rebilling or it depends on site to site or its in the hands of billing processors.

    May i know what's technical thing, how much least amount they look for incase of Sites powered by ccbill.?

  5. #5
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    Well if you have never joined any site before that uses CCBill, they might have tried to authorize a high limit for some odd reason.

    I really cannot remember everything that they did discuss, but CCBill has an algorithm of sorts that is used on those types of charges. I would think that since you are now using their system, you have less of a chance of being fraudulent.

    They have very unique scrubbing and if you have never used CCBill before they try to do a pre-auth on your card for a certain amount (that I am not really aware of). Unfortunately, I caught the tail-end of that seminar so I missed a lot of it.

    I do not think you have too much to really worry about since you have now been approved. You can always call CCBill and speak with one of their representatives. They are great people to site down and have a few drinks with

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