Understanding Pre-Authorization Charges with a $0 Balance

You may find it puzzling to discover that your card was charged despite having a $0 balance. In our case, this situation arises due to a pre-authorization process that serves multiple purposes, including ensuring funds availability and fraud prevention.

Why a $0 Balance Results in a Pre-Authorization Charge:

1. Account Credit Usage:

   • If your account has a $0 balance due to the use of account credit, we may still initiate a pre-authorization charge. This is because account credit usage can result in adjustments to your balance in the future, potentially leaving an amount due.

2. Funds Availability Check:

   • The pre-authorization charge serves as a precautionary measure to verify that funds are available on the provided card. By initiating a nominal charge, we confirm that the card is valid and has sufficient funds, even if the current balance is $0.

3. Fraud Prevention:

   • Pre-authorization charges also serve as a fraud prevention measure. By validating the card's authenticity and the availability of funds, we reduce the risk of fraudulent transactions and unauthorized use of payment methods.

How Pre-Authorization Works:

1. Temporary Hold:

   • When we pre-authorize your card, a temporary hold is placed on the authorized amount. This hold ensures that the funds are reserved for the transaction but not immediately deducted from your account.

2. Authorization Period:

   • Pre-authorization charges typically appear as pending transactions on your card statement. The authorization period may vary depending on your bank or card issuer but is usually resolved within a few business days.

3. Adjustments and Settlement:

   • If no additional charges are incurred or adjustments to your account balance are made, the pre-authorization charge will typically be reversed, and the funds released back to your available balance.

Conclusion:

While it may seem unusual to see a pre-authorization charge with a $0 balance, rest assured that it serves important purposes such as funds availability verification and fraud prevention. By initiating these precautionary measures, we aim to ensure the security and integrity of your transactions while providing a seamless and reliable payment experience.

If you have any concerns or questions about pre-authorization charges or your account balance, please don't hesitate to reach out to our support team for assistance.