Partial Authorization
What is Partial Authorization?
Partial authorization allows a merchant to accept a card payment for the available balance on a card when the full transaction amount cannot be covered. The issuer approves a portion of the requested amount, and the merchant collects the remaining balance using another payment method.
Business Scenarios
- When a card product has an available balance that is lower than the requested amount: For example, a prepaid card with a $50 balance is used for a $75 purchase. The issuer may approve a partial authorization for $50, and the merchant collects the remaining $25 using another payment method.
- When a card product has specific spending restrictions: For example, a substantiated FSA card is used for a $75 purchase, but only $50 is eligible. The issuer grants a partial authorization for $50, and the merchant collects the rest separately.
Business Rules
- If the card's available balance is less than the transaction amount, the issuer may approve a partial authorization for the available balance.
- Partial authorization applicable only for pre-auth transactions
- The business rules for partial authorization align with those defined for Pre-Auth.