Estimated Authorization

An estimated authorization is an authorization request and approval that occurs before the merchant knows the final transaction amount. It enables the merchant to secure approved funds based on the estimated total of the goods or services the cardholder is purchasing. An estimated authorization must be a genuine estimate and must not be an arbitrary amount.

It is typically used when the cardholder consumes or is in the process of obtaining goods or services before the final purchase amount is known.

Rules may vary by card brand.  The length of time an authorization holds cardholder funds varies by Industry and card brand.  Please check brand documentation.

In general, merchants using estimated authorizations must inform the cardholder that the amount is an estimate. Cardholder notification may be written or verbal.

Amount Indicator

The AmountIndicator field specifies whether the amount of a transaction is Estimated or Final.  Where applicable, merchants may indicate that the amount of CreditAuth or RecurringBillingAuth request is an estimated amount.  The data element AmountIndicator should be set to 'E' for an Estimated amount and 'F' for a Final Amount. 

Please note that if the Amount Indicator is set to 'F', indicating final amount, then the total amount of that transaction should not be modified.