// GLOSSARY -- AGENTIC FINANCE
What is Pre-Authorization for Agent Payments?
An agent requests approval before committing funds. The policy engine evaluates and returns an authorization token for the actual payment execution.
WHY IT MATTERS
Separates the decision from the act. Agent asks "can I spend $50 at vendor X?" — only if authorized does it construct the transaction.
From credit card processing. Enables speculative planning — pre-authorize options, execute only the best.
Avoids wasting gas on transactions that would be rejected.
HOW POLICYLAYER USES THIS
PolicyLayer supports pre-authorization — agents check compliance before constructing transactions, improving efficiency.
FREQUENTLY ASKED QUESTIONS
How long does pre-auth last?
Configurable — typically minutes to hours. The authorization token expires, requiring re-evaluation for delayed execution.
Can conditions change between pre-auth and execution?
Yes — the actual transaction is also validated at execution time. Pre-auth is advisory; final validation is authoritative.
Is pre-auth required?
Optional. Some operators use it for expensive operations where gas waste matters. Others rely solely on real-time evaluation at signing time.