Pre-Authorized Payment: Fill & Download for Free

I sent an angry email to my electricity distribution company asking them why they were charging me twice every month for the same bill.Here is their response:“Thank you for your email. We apologize for the delayed response.Our records indicate your account is registered for pre-authorized payment, meaning the balance due will automatically be withdrawn from your financial account upon its due date. The duplicate payments received each month appear to be made manually. (…) As your account has registered for pre-authorized payment, you are not required to process bill payments manually.”

Whether you are in Europe or not, there are 2 options for payments via bank transfers:Direct wire transfers. This method allows you to accept money via bank transfer.Payment gateways. This could be any software that helps to facilitate the transaction between the marketplace and its customers.Let’s see what are the advantages of each payment method.Plus here’s a deep comparison of all available marketplace payment solutionDirect wire transfersFees for users: There are fees for bank transfers: European banks, for instance, ING Bank (Holland) charges €6 per transfer.Security: Lack features such as fraud protection or the ability to pre-authorize payments, it is impossible to get reversals or chargebacks.Price: All you need is to send an invoice and get your bank transaction. So, a bank transfer is a good idea for those who are looking for a cheap solution.Payment gatewaysFees for users. The average fee for one transaction is 2,9% + $0,30.Security. Most payment gateways offer various security tools, such as SSL and PCI protection certificates, 3D Secure or escrow payments.Financial services. You can use different types of payments:. Such payment gateways as Stripe and Adyen allow you to pay with VISA, MasterCard, American Express, Alipay, etc.Geolocation. Some payment gateways may have limitations in various areas. For example, PayPal is partially restricted in some countries, and Stripe is unavailable in United Arab the Emirates. So check the geography of your provider!Which payment gateway to choose for Europe?Well, there is a number of solid payment solution.My team develops online marketplaces and usually, we recommend to integrate Stripe for European startups.Here you can check out the reasons why Stripe is a good choice for European online marketplaces

Pre-zuthorization allows you to “freeze” the required amount on the payment card without completing the transaction. The advantage of pre-authorization is that you have 7 to 10 business days to complete the capture. For some industries, such as restaurant industry, pre-authorization requirement is mandatory, because the payment amount is actually charged several days after the actual purchase. Beside that, restaurant tips can be adjusted on pre-authorized transactions (check this article for examples and details: Credit Card Processing in Restaurant Industry). Besides, tip adjustment feature can be useful for taxi or private driver services as well. For other industries pre-authorization is a handy tool, allowing the merchant to verify, whether the customer actually has the necessary amount on the card. This amount is charged only after the product or service have been granted.