What does 'Authorization' indicate, and not indicate, regarding credit card transactions for Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorization: Approval by, or on behalf of, the Issuer to validate a Credit Card or Debit Card transaction. Authorization indicates only the availability of credit or funds at the time the Authorization is requested; it does not indicate that the person presenting the Card is the rightful Cardholder and it does not guarantee that you will not be subject to a Chargeback, an adjustment, or other Servicers Fees and Third Party Based Fees with respect to the authorized transaction.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, an 'Authorization' in the context of credit card transactions means an approval to validate a credit or debit card transaction by the issuer. This validation only confirms the availability of credit or funds at the time the authorization is requested.
However, the authorization does not guarantee that the person using the card is the rightful cardholder. This means that even if a transaction is authorized, there's still a risk that the cardholder is not the actual owner of the card, potentially leading to complications later on.
Furthermore, the authorization does not protect the Crowne Plaza franchisee from chargebacks, adjustments, or other service fees related to the authorized transaction. Therefore, even with an authorization, the franchisee could still incur losses or additional fees if issues arise with the transaction after the fact. It is important for franchisees to understand that authorization is simply one step in the payment process and does not eliminate all risks associated with credit card transactions.