PCInk - 11:01 am on Jan 18, 2010 (gmt 0)

Does anyone know what happens in the following scenario with pre-auth'ed cards? 1. Enduser makes (fraudulent) purchase, pre-auth transaction

You can ignore or cancel the transaction. Most providers don't charge you any fees until you accept the transaction, but this is not universal, a few do charge small amounts for each attempt.

2. CC owner reports card as stolen / 3. When attempt to settle the charge ... is it declined?

A pre-auth card is checked at the time the order is placed. When you accept the card, it is checked again and if the card has been stolen in the meantime (or at least reported!), it will come back as a rejected payment.