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PayPal pre-authorisation ?

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  • 22-07-2010 1:58pm
    #1
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭


    Just a quick question on the possibility for pre-authorisation using PayPal.

    Is it possible to pre-authorise a sale amount on a credit card, but not immediately "pay" it; and only collect it later ?

    e.g. if you had a system similar to eBay, but which didn't send you an email AFTER the auction to tell you to "pay now" - instead it took the pre-authorisation for that amount at the time, and only charged you if you were the successful bidder ?

    Or maybe this would be a better example, because the above has a whole host of bidders that would need the pre-auth to be cancelled :P :

    A speed-date event that will only go ahead if there are 10 men and 10 women booked; if enough participants sign up, then all of the payments are THEN taken, otherwise the pre-authorisation is cancelled and no charge is made, because the event can't go ahead.

    Rather than doing a Paypal refund to 18 people just because you haven't the final 2, the pre-authorisation would be a lot handier.

    Has anyone worked on something similar ? Is it possible to do ?

    Any posts or PMs greatly appreciated.


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    #2
    lynchie
    Registered Users Posts: 1,998 ✭✭✭lynchie


    Every CC transaction consists of an Authorization followed by a settlement. Paypal like most other gateways will allow you to make an authorization for X and will guarantee a settlement up to 115% of X for 3-5 days. You can make a settlement on an authorization up till 28 days but after the initial 3-5 days they cannot guarantee 100% of the authorization.

    I think the default action is authorization and immediate settlement with paypal, however you can change the action to authorization only and you can settle the transaction manually yourself on their website.


  • Options
    #3
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    lynchie wrote: »
    Every CC transaction consists of an Authorization followed by a settlement. Paypal like most other gateways will allow you to make an authorization for X and will guarantee a settlement up to 115% of X for 3-5 days. You can make a settlement on an authorization up till 28 days but after the initial 3-5 days they cannot guarantee 100% of the authorization.

    I think the default action is authorization and immediate settlement with paypal, however you can change the action to authorization only and you can settle the transaction manually yourself on their website.

    Thanks for that! :)

    Any pointers / tutorials on how to achieve this "authorisation only" ?

    And is settlement only manually through their site, or can the transaction ID be captured in the initial request and batched later ?


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