You can preauthorize a credit card that is submitted for the payment of a sales order without charging the customer's credit card. Microsoft Dynamics AX can work with either of two credit card processors that act as a bridge between your organization and the bank that processes the customer's credit card charges.

When a credit card is preauthorized, the card number and card holder's identity are verified, and the available credit balance is confirmed. The customer's available credit balance then is reduced by the amount of the invoice. The credit card processor sends information that the credit card has been approved or declined. When the sales order is invoiced, the credit card is charged for the invoice amount.

To use credit card preauthorizations, you must activate either Microsoft Dynamics Payment Services or Authorize.Net as the credit card processor. You must obtain a merchant's ID from the credit card processor and set up a connection to the processor's Web site using the Credit card processorsform. You must also complete the following steps:

• Enter parameters for using credit card preauthorizations using the Accounts receivable parametersform.

• Enter credit card information for customers using the Customer credit cardsform.

When you enter sales orders, you can enter new credit card records for new or existing customers using the Credit Card Wizard. To start the preauthorization process, click Functions> Credit Card Wizardwhen you are entering a sales order using the Sales orderform.