Suggestions - Help - Temporary Authorizations

I’ve searched all around but couldn’t find my answer to this question and was hoping the community could help:

Our customers makes online reservations for hotel bookings. We want to ensure our customers have enough funds prior to pay for their hotel stay. The customer can cancel there reservation anytime before the date of the reservation. Can we put some sort of temporary charge on the customer’s payment source one - two weeks before the reservation date (of course, with the customer’s permission) to ensure that we will receive payment upon the customer staying at the hotel (upon the services being rendered)? If the customer ends up not showing up, we will then release this temporary charge and the customer will not be charged. If the customer does end up showing up, we will then proceed to complete this temporary charge.

The purpose of doing this is that we want to ensure the customer has the ability to pay for the reservation before going out of our way to reserve a hotel room for that customer.

Thank you for your help!

Yes, and it’s called an authorization. Authorization (holding funds on a credit card) and capture (turning the authorization into a charge, resulting in money moving from the cardholder’s bank to yours) are two separate steps. Whatever payment gateway you use will have separate methods to authorize and capture.

Be sure you read the operating regulations from Visa and MasterCard, plus whatever other card brands you’re going to accept. There are quite a few rules about when and how you may make authorizations, how long you may hold them, etc.