Pre-authorization for Credit Card Payments - Northwest Territories, Canada

Pre-authorization for credit card payments in Northwest Territories, Canada is a process where a temporary hold is placed on a customer's credit card to ensure that funds are available for a possible future transaction. It is commonly used by businesses such as hotels, car rental agencies, and gas stations to secure payment before providing a service or product.

In the Northwest Territories, Canada, the merchant or business that is accepting the credit card payment typically files the pre-authorization.

FAQ

Q: What is pre-authorization for credit card payments?
A: Pre-authorization for credit card payments is when a merchant places a temporary hold on your credit card for a certain amount before completing the transaction.

Q: Why do merchants use pre-authorization?
A: Merchants use pre-authorization to ensure that funds are available on the credit card and to secure payment for goods or services.

Q: How does pre-authorization work?
A: When you make a purchase, the merchant contacts your credit card issuer to request pre-authorization. The issuer places a hold on the specified amount on your credit card, reducing your available credit.

Q: How long does a pre-authorization hold last?
A: The duration of a pre-authorization hold can vary, but it is typically released within a few days. However, some holds may last longer depending on the merchant's policies and the credit card issuer.

Q: Can pre-authorization affect my available credit?
A: Yes, pre-authorization holds temporarily reduce your available credit since the specified amount is held on your credit card.

Q: Can I cancel a pre-authorization?
A: If you decide not to proceed with the transaction after pre-authorization, you should contact the merchant to cancel it. However, it may take some time for the hold to be released.

Q: What should I do if a pre-authorization hold is not released?
A: If a pre-authorization hold is not released within a reasonable time, you can contact your credit card issuer to inquire about the hold and request its removal.

Q: Are there any fees associated with pre-authorization?
A: No, there are generally no fees associated with pre-authorization. However, if a hold is not released in a timely manner, it is advisable to contact your credit card issuer to avoid any potential fees or penalties.