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Is It Time To Sharply Shrink Pre-Auth Holds?

Written by Evan Schuman
February 23rd, 2012
Given that mobile is almost certainly going to drive a lot more virtual stored value offerings throughout retail, it might be a good time to rethink how retail handles payment pre-auth holds.

Consider today's situation: A shopper is driving to the mall to use a new giftcard she's been sent and she pulls into a gas station en route. She says "fill 'er up" and hands the attendant the giftcard. Given that it's an unknown amount, the attendant keys in $100 and starts pumping. The final bill is $35 and the customer gets her receipt and drives off to the mall. When she tries to buy something, she discovers the card has been emptied and it won't be restored for 2 to 3 days.

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Posted in In-Store, Mobile/Wireless/Contactless, Payment Systems, Premium Content, Security/Fraud
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