How are card transactions (pre-authorizations and pending authorizations) handled?
A pre-authorization checks that your card is valid and that enough funds are available. The amount is then reserved, but it has not necessarily been fully charged yet.
This often happens with hotels, car rentals, gas stations, online orders, subscriptions, or any merchant that needs to confirm the final amount later.
If you make a payment and it is rejected by the POS, a hold can still appear in the app and can only be released by the merchant.
Why is the money held?
When a merchant requests a pre-authorization, the amount is temporarily blocked from your available balance. This means you cannot use those funds while the authorization is pending.
The hold stays in place until one of the following happens:
The merchant completes the charge
The pending authorization becomes a final card transaction.The merchant cancels or releases the authorization
The reserved amount is returned to your available balance automatically.The authorization expires
If the merchant does not complete or cancel the transaction, the hold is automatically released after a maximum period (30 days).
Why can it take up to 30 days?
Some card authorizations can remain pending for up to 30 days. This timeframe exists because merchants and card networks are allowed a period of time to complete, adjust, or cancel the transaction.
For example, a hotel may place a hold when you check in and only confirm the final amount after checkout. A car rental company may keep a hold until the vehicle is returned and any additional charges are confirmed.
We cannot manually remove the hold while it is still active, because the funds are reserved by the card authorization process. Once the merchant releases it, completes the charge, or the authorization expires, the funds become available again automatically.
What happens if the merchant cancels the authorization?
If the merchant cancels or releases the pre-authorization before the 30-day period ends, the funds are returned to your available balance automatically.
You do not need to take any action. The system updates your balance once the cancellation or release is received.
What happens if the merchant does nothing?
If the merchant does not complete the charge and does not cancel the authorization, the hold will expire automatically after the allowed timeframe.
Once it expires, the reserved amount is released and becomes available in your account again.
Important to know
A pending authorization is not always the same as a completed payment. It is a temporary hold that may later become a final charge, be adjusted, or be released.
If you do not recognize a pending card transaction, we recommend contacting the merchant first, as they are the ones who can confirm whether they intend to complete or cancel the charge.