3 ways acquirers can boost merchant success with flexible authorisation solutions

Estimated authorisation is a powerful tool that allows merchants to authorise a transaction for an estimated amount before the final amount is confirmed. This is helpful in scenarios where the final cost can fluctuate, such as hotel stays or car rentals. For instance, when a guest checks in to a hotel, an estimated amount can be authorised to cover the stay, potential minibar costs, and other services before being finalised at checkout. Similarly, car rental companies can authorise an estimated amount based on the rental period and anticipated mileage.

For merchants, this method significantly reduces the risk of non-payment for additional services and ensures that funds are available, thus helping them avoid bad debt for non-payments. And consumers benefit from fewer payment interruptions and the transparency provided by better communication about potential charges.

Incremental authorisation allows merchants to add additional amounts to the originally authorised sum as more services or products are consumed. This is especially useful in continuous service environments such as hotels, where guests use services such as dining or spa treatments across their entire stay. In healthcare, clinics can authorise additional amounts as patients receive more treatments than initially planned.

Merchants gain the flexibility to manage varying charges without needing multiple authorisations, which also reduces the hassle for customers. And consumers can enjoy uninterrupted services without the need for re-authorisations, building their trust in a smooth payment process.

Extended authorisation keeps an initial authorisation valid for up to 30 days, as opposed to the typical seven days. This is ideal for longer-term engagements or when the final amount is uncertain for an extended period. For instance, eCommerce merchants can keep orders with backordered items open until all products are shipped. And subscription services can maintain authorisations during trial periods where the final charge depends on how much the customer uses.

Maintaining long-term services and engagements without the need for multiple authorisations or possible declines fosters customer retention. And customers benefit from the flexibility of not having to re-authorise payments frequently and a better idea of their financial picture.

By offering these advanced authorisation solutions, you can help your merchants provide seamless, flexible, and trustworthy payment experiences for their customers. Merchants will enjoy better cash flow management, reduced risks, and higher customer satisfaction. At the same time, consumers will appreciate a frictionless and transparent experience.

Our experts can help you embrace these solutions to unlock new opportunities, drive growth, and solidify your reputation as an acquirer who delivers value for your merchants.