Pre-authorization is a common practice in the hospitality and car rental industries. It ensures that funds are available for additional charges such as cleaning, room service, damages, or fines. For hotels, pre-authorization streamlines the check-in process by removing the need to process extra payments manually. In car rentals, pre-authorization secures sufficient funds to cover potential damages, estimated rental charges, and additional fees like fuel charges. The held funds are released once the rental period ends and the vehicle is returned.