In order to check if a credit card is valid, stolen or exceeded, it is still a common procedure to authorize a small amount (1 EUR), a so-called ghost authorization, prior to authorizing an actual booking or purchase. This important fraud prevention feature allows verifying the account holder and provides information about the validity of the credit card. The only problem is that the authorization still shows up on the cardholder’s statement. As a result, it might cause confusion and suspicion by the customers.
In order to avoid confusion, payment networks advanced alternative ways to check the validity of credit cards by authorizing a zero-amount instead of an actual value. Main benefit, the authorization does not appear on the customer statement.
How does the ,,Credit Card Check’’ work?
If you want to check the validity of a credit card, simply send a zero-amount authorization request against our payment gateway (server-to-server) and we reply if the credit card check was successful or not. In the background, we pass on the request all the way through our acquiring partner, the card networks and issuing banks within milliseconds. If successful, you can start from the premise that the credit card is valid. If not, just contact your customer and ask for clarification.
In general, this type of service would require to sign a contract with a payment service provider, which would be responsible for the technical processing of your request as well as an acquiring/merchant bank. By using the credit card check of PCI Proxy, you bank on our acquiring contract. And since we are already a payment service provider, an additional contract would not be necessary.