About Payment Authorization Holds

Card Authorizations or Pre-Authorizations
This is a temporary hold the bank places on your credit or debit card at the time of your purchase.
Completing a card transaction involves 2 steps:

  1. Authorizing the purchase.
  2. Settling the transaction.

The authorization process does not transfer funds from your account to the merchant, it is just the bank making sure that the funds for a purchase exist.

When an attempt at a purchase is made, you may see a pending charge on your bank statement. This is called an authorization hold.

Once the funds are settled to the merchant, the authorization hold will change to the actual amount paid.
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