An initial authorisation is a flexible preauthorisation that allows for subsequent increase or decrease in value. This type of transaction can be used when the merchant does not know the final amount when the transaction begins. There are two ways to do this, through a preauthorisation increase transaction used to increase the initial amount value and a preauthorisation cancellation used to decrease the total amount authorised. For example, a hotel booking where the final account balance might change after the time of booking.
This transaction type is supported by Visa and MasterCard and is available to merchants from eligible industry segments.