Credit card pre-authorization is a security measure to help protect you from fraudulent order transactions. If you are using the built-in order forms, it is the default type of authorization for clients paying by credit card.
A standard credit card charge has two steps, the credit card authorization and the funds capture. Ubersmith's Order Manager can run these steps separately to prevent fraud. Pre-authorizing a card happens when an order is initially submitted. The card number’s validity and the customer’s ability to afford the amount due are verified. However, no funds change hands.
Once a pre-authorization runs successfully on an order, you can take additional steps to screen the order and customer for potential fraud. Once you are confident in the transaction, run the Generate Invoice order action which officially sends the customer their first invoice and captures the funds to complete the charge.