An authorization hold is a temporary charge placed on a customer’s credit or debit card. This hold ensures that the customer has the necessary funds available to cover a purchase. Once the purchase is completed, the authorization hold is converted into a final charge.
There are a few different scenarios in which an authorization hold may be placed on a credit or debit card. For example, a hotel may place an authorization hold when a customer checks in. The hotel will then convert the authorization hold into a final charge when the customer checks out. Similarly, a rental car company may place an authorization hold when a customer picks up a rental car. The rental car company will then convert the authorization hold into a final charge when the customer returns the car.
In some cases, an authorization hold may be placed on a credit or debit card even if a purchase is not being made. This can happen if a cardholder’s account is flagged for suspicious activity. For example, if a cardholder makes an online purchase with a new retailer, the retailer may place an authorization hold on the card to ensure that the cardholder has the necessary funds available. If the cardholder does not have the necessary funds available, the purchase will be declined.
Authorization holds are typically temporary charges that are removed from a cardholder’s account within a few days. However, in some cases, an authorization hold may remain on a cardholder’s account for longer. For example, if a cardholder does not have the necessary funds available to cover a purchase, the authorization hold may remain on the cardholder’s account until the funds are available.
If you have questions about an authorization hold on your credit or debit card, contact your card issuer for more information.
