How can I pre auth a transaction

[maxatt]

Hi, I am using link point pls tell me how to pre auth a transaction ?

 

Thank you.

[Matt]

You cannot only pre-auth a transaction, the transaction is authorised and charged when you attempt a payment on an invoice.

 

Matt

[maxatt]

No i mean not a single transaction , How do I make pre auth all the transactions that are going through the system ?

[DephNet[Paul]]

Why preauth transactions?

 

Unless you are going to preauth next months payment then there is no point in preauthing at all.

 

If you did preauth next months payment then I am sorry but I will not use you for one.

 

If your preauthing for dedicated servers then taking payment when the server is deployed then you would have to talk to your gateway provider to see how to preauth with them.

 

As far as I know you cant preauth a transaction with WHMCS.

 

Paul

[maxatt]

oh this is not good - I have to double think about buying the software, You need pre Auth for various reasons main reason is due to fraud risks because when you refund a transaction then it will put flag on with the processor too many refunds will end up loosing our merchant account too ( This happened to me once ) , so best method is to do a per authorization first and later screening everything including fraud score etc and later capture the transaction..

 

Tip: pre Auth is not something that you can do by talking with the processor its should initialize from the place where we sending the payment ( You simply can define this in your Gateway page just put a check box to enable Pre Auth or Sale transaction)

 

Almost all the processors support pre authorization except some 3rd party payment companies such as 2checkout

[trine]

maxatt, you will find that not many web hosting centric billing platforms actually do that (Auth-Only). I few come to mind, but not in this price range. The vast majority simply do the auth + capture at once, without any other possibilities.

[DephNet[Paul]]

Who was it that canceled your merchant account?

 

The company I left in december was processing about 2 refunds a week for approximatly 2 years and yet they never had their merchent account canceled.

 

Paul

[maxatt]

]Who was it that canceled your merchant account?

 

The company I left in december was processing about 2 refunds a week for approximatly 2 years and yet they never had their merchent account canceled.

 

Paul

 

CSI is the company that canceled our account few years ago , yes I know two refunds for a week is might be ok but if you have few chargeback's and two refunds for a week then its not going to be ok . its good to have Pre Auth than refunding a transaction. its a good idea of not to do any sales transaction ( It will minimize your chargebacks, minimize the problems with the processor) and you can delay capturing the transaction for a about week , we do capture transactions once a week. and we have no problems.

 

But I don't know your case, it might be different, we do process about 70 transactions for a week , and 25% of those are fraud orders, We do process high volume of tickets that because we are selling dedicated servers and refunding of two or three high volume ticket is just another problem because your processor not going to be happy with it.

[maxatt]

maxatt, you will find that not many web hosting centric billing platforms actually do that (Auth-Only). I few come to mind, but not in this price range. The vast majority simply do the auth + capture at once, without any other possibilities.

 

yeah but this is an important feature that you should have with WHMCS.

[Matt]

We could modify the module to do pre-auth only for you instead of the pre-auth and then capture it does by default. This would need to be done on a custom modification basis though.

 

Matt

[DephNet[Paul]]

But I don't know your case, it might be different, we do process about 70 transactions for a week , and 25% of those are fraud orders, We do process high volume of tickets that because we are selling dedicated servers and refunding of two or three high volume ticket is just another problem because your processor not going to be happy with it.

The company was a "health drink" supplier, think Slim Fast and you are about right. They process about 10 orders of £56 each a week of which 2 orders are refunded per week.

 

In the 18 months I was there I believe we had 3 charge backs and I have heard the business has gone bust since December due to loosing its merchant account.

 

As I have said before the ONLY reason a web hosting business would need to pre-auth is for dedicated servers. Even if you pre-auth on a dedi you do not remove the chance of a chargeback.

 

The ONLY way to remove the chance of a chargeback is to not accecpt credit/debit cards.

 

Paul

[maxatt]

yeah it will be great pls check my pm there is just a simple line you have to add to make it pre-auth.

[maxatt]

Hi Paul , thank you , but from my experience I know people can file chargeback for a transaction that we refunded as soon as we received it.

 

For a example lets says we have a fraud order that is came through Maxmind ( Some times this is happening risk is grater with your system since you don't compare it with the bank bin too) so we have refunded it on the same day. but the actual card holder don't know that and he is filling the dispute. and we get the chargeback although we have refunded it on the same day ( as you know banks take about 7-14 days to post a refund to his account) so we will end up paying two times including chargeback fees and all the other charges also it will count as a charge back and we get a flag too ....

 

So my Friend think why not do a Pre Auth and not to capture suspicious transaction? You don't get chargeback no flags , no money going to be loose, no time loose.

 

Think about it

[maxatt]

The ONLY way to remove the chance of a chargeback is to not accecpt credit/debit cards.

 

Sorry I don't want to be rude , but I think you have to think twice , There are so many methods that you can do to avoid Unnecessary chargebacks , here I am talking about one point of that kind.

[Matt]

This is getting off topic. Most companies do not require doing pre-auths for any reason, and that's why it isn't implemented. If you need it, open a ticket requesting a quote for a custom modification.

 

Topic closed.