The Legal Nature of Credit Card Pre-Authorization and Cardholders Protection

Credit card pre-authorization is when the credit card holder orders the issuing bank by the POS terminal channel or provide credit card information in remote way,to make a payment commitment for the underlying transaction between the card holder and the merchant. The legal relationship of pre-authorization is a compound legal relationship between the card holder,the issuing bank and the merchant,however the guarantee relationship between the issuing bank and the merchant plays a key role. Pre-authorization is set as a kind of credit guarantee once it has done,it wasn't decided by the transaction sheet or confirmation sheet,the transaction sheet and confirmation sheet are only the written documents of the pre-authorization behavior and settlement. It is not conducive to protect the card holder,if he doesn't have the right to terminate pre-authorization,thus,we should admit that they have the termination right under the statutory basis,to protect the legitimate right of card holders.