When selecting Pre-Authorize on a charge, it simply means the amount is held on the customer’s card until you capture it. Similar to how incidentals at a hotel works or a gas station if you pay the pump.
For example, you book into a hotel and the room itself is prepaid, but they will authorize your card for $200. Let’s say when you check out, you have only consumed $170 worth of minibar snacks and drinks , so they will capture $170. But the whole $200 would have been held as a guarantee. The hotel needs to either capture up to $200 within 7 days, or the entire $200 is released back to your credit availability.