Legal Analysis Of Credit Card Pre-authorization Transaction Disputes

Credit card pre-authorization is a special form of credit card transactions,widely applied to hotel rooms,car rentals and other rental businesses and medical bills and so on,in the form of a promise of payment by the bank to facilitate the underlying trade.The transaction process and legal attribute are different from the general credit card transaction,which is difficult to understand for the cardholder,and is often used by the offender for credit card theft.In the case of this dispute,its specific legal properties are not adequately represented by the legislative and judicial judges,which is not conducive to the protection of the cardholder's rights and the right handling of the pre-authorized trading dispute.This paper first analyzes the legal attributes of the pre-authorization transaction of credit card and the legal relationship among the four parties and sorts out the main types and reasons of the pre-authorization transaction disputes,and summarizes the issues that are prone to disputes or disputes in the application of laws.In accordance with the process of the transaction,the determination of pre-authorization establishment,completion and cancellation,respectively,is analyzed according to the stage of pre-authorization and termination,and the key analysis is carried out on the responsibility of holders' right-to-know protection and the obligation and responsibility of the issuing bank in pre-authorization cancellation.The obligation of issuing bank to inform the cardholder in the pre-authorization transaction should be specified and the responsibility for breach of the obligation shall be specified.Card holders have not the right to cancel the pre-authorization directly,but in the underlying transaction has been completed or unauthorized report the loss of the case,the issuer shall have the duty to verify and circumstances to cancel the pre-authorization,shall be liable to the holder or losses.