Preapproval process HELP !

I'm surprised no one brought this issue up before, because there is no information on this process in the "Help" database.
What exactly is the preapproval process supposed to accomplish?
Two buyers asked me to preapprove them in the past month, each to purchase an item. I approved them, but they did not purchase anything. One said he was sending a money order but never did. Was I supposed to "Close" the item and hold it for them until I
receive payment. I cannot find any information on this site on how this is supposed to work. One of the buyers is also in the dark and
does not know what he is supposed to do.
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