Bank card pre-authorization: what is it?

Question

PremProxy uses two-step bank card payments processing with pre-authorization on the first phase.

This means that at first money is reserved from the client’s fund without charging bank card.

So, when the payment is going with pre-authorization you can receive from our payment processor a message like that:

Money was successfully blocked on your bank account. For more information on charge-off or payback please ask from merchant's site.

That is how it looks on payment page:

Answer 1

A pre-authorization is a temporary funds hold, not a true charge. It will usually only show up on a banking statement as “pending charges”.

Then (after your order is reviewed) we have to approve or decline a payment . 

If we authorize a payment  a card is being charged (it's the second phase).

If we decline a payment the hold is being removed from customer's money.