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11.1.2 Pre-Auth Payment Feature

Module Type: Payment Configuration
Platform: Admin Panel, Customer App, Driver App

Overview​

The Pre-Auth Payment feature allows the system to block an estimated trip fare amount on the customer’s card during booking without charging it immediately. The final payment is captured only after the trip ends, ensuring accurate billing and smooth refund/cancellation handling.

1️⃣ Definition​

Pre-Auth Payment is a secure transaction method where the system authorizes and blocks funds on a customer’s card at the time of booking but does not deduct the amount until the trip is completed.

2️⃣ How It Works​

A. Booking Stage​

  • When a customer books a ride, the system estimates the fare and blocks that amount on the customer’s card.

B. Trip Confirmation​

  • The booking is confirmed only after successful pre-authorization.

C. Trip Completion​

  • If the final fare matches the estimate: blocked amount is captured.
  • If the fare is lower: actual fare is captured, and the balance is released.
  • If the fare is higher: estimated amount is captured, and the extra is marked as due for the next payment cycle.

D. Cancellations & Refunds​

  • Driver cancels: blocked amount is fully released.
  • Customer cancels: cancellation charges are deducted, and the remaining balance is refunded.

3️⃣ Key Benefits​

  • No upfront payment required by customers.
  • Protects drivers against last-minute cancellations.
  • Ensures accurate final billing with automatic adjustments.
  • Faster and transparent refunds for customers.
  • Reduces payment failures at the end of trips.

4️⃣ Use Case Example​

  • A customer in London books a ride with an estimated fare of £25.
  • The system blocks £25 on the customer’s card.
  • The ride is completed with a final fare of £22.
    • £22 is captured, and £3 is released back.
  • If the customer had cancelled the ride, a £5 cancellation charge would be deducted, and £20 refunded.

Final Notes​

The Pre-Auth Payment feature balances customer convenience with driver security. It reduces friction in payments, ensures fairness in refunds, and builds trust by charging only the accurate amount. This feature is especially valuable in regions where customer confidence in online payments is crucial.