Card Network Rules: Payment processors and card networks have rules about the use of pre-authorizations. Excessive or inappropriate use can be flagged, potentially leading to penalties, holds on your account, or even termination of your merchant account. Customer Experience: Imagine a customer who participates in several auction bids and has a pre-authorization placed for each bid. This can lead to: Blocked Funds: A large amount of their credit limit could be temporarily blocked, making it difficult for them to use the card for other transactions. Confusion: Customers might be confused about multiple holds on their account, leading to inquiries and chargebacks. Negative Experience: A poor customer experience can hurt your reputation. Risk of Expiration & Release: If pre-authorizations expire, and the auction is not completed, you might have to re-authorize, which can be disruptive and annoying to the customer. False Availability of Funds: Since not all bidders will win, placing holds on all bidders' accounts gives a misleading view of how much funding you might actually have available to you. Chargebacks & Disputes: Confused customers with multiple pre-authorizations are more likely to dispute charges, which can hurt your merchant standing and reputation. Processor Scrutiny: A merchant running a high volume of pre-authorizations relative to actual sales could be perceived as risky behavior. Processors will scrutinize businesses with higher dispute rates and high pre-authorization-to-capture ratios.