What is incremental authorization?

What is incremental authorization?

• A. An amount was initially authorized, but the merchant can always capture less than that amount.
• B. A second authorization is required for every item.
• C. An amount was initially authorized, but due to changes to the underlying purchase another authorization for a higher amount is attempted.
• D. Extended authorization is used for travel bookings.

Answer: (C)

Incremental authorization is about increasing the amount you’re authorized to capture when the final purchase total ends up higher than the initial estimate. You first place an authorization for an initial amount, and if the order changes so the total is higher, you issue another authorization for the higher amount. This lets you secure funds for the revised total without trying to push more onto the original authorization. In practice, some purchases can’t be finalized at the initial amount, so the merchant adds a second authorization to cover the new total. The other options don’t describe this process: one talks about partial captures, another about a second authorization for every item, and the last about travel-specific extended authorization.

Incremental authorization is about increasing the amount you’re authorized to capture when the final purchase total ends up higher than the initial estimate. You first place an authorization for an initial amount, and if the order changes so the total is higher, you issue another authorization for the higher amount. This lets you secure funds for the revised total without trying to push more onto the original authorization. In practice, some purchases can’t be finalized at the initial amount, so the merchant adds a second authorization to cover the new total. The other options don’t describe this process: one talks about partial captures, another about a second authorization for every item, and the last about travel-specific extended authorization.