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>We’re starting with eCommerce and then rolling out to other retailers.

Isn't it illegal to charge the customer before the goods are shipped. Do they handle pre-auth and settlement?

No it's not illegal to charge before shipping, why would you ship something out that costs $$$ when you run the risk that the card will not be good?

That's what an auth step is, like nahname mentioned. Many (most?) credit card charges come in two parts: the auth, which appears on your statement and kind of verifies that your payment won't be rejected, and the settlement, which actually finalizes the charge. When you buy something from a large online retailer like amazon, they immediately do an auth, and then only settle when the item is shipped. At least I think that's how it works.

It's against card brand rules, most definitely not illegal.

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