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Pre-Authorization and Settlement Can Lead to Trouble

admin | 14 October, 2005 10:41

Websites and call centers that pre-authorize and settle before sending the order files to a fulfillment center may be overlooking several potential problems. The most important is inventory availability. Once a card is charged and settled, the fulfillment center will need to ship the order within a tight timeframe. If there is not enough inventory for all of the orders, the marketer may have to deal with chargebacks, increased customer service calls and better business bureau complaints.

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