What is an “authorization”?
As the name implies, an authorization is a transaction you use to: • Help verify that the card is not counterfeit • Verify that the cardholder has sufficient credit for the purchase • Place a “hold” on the cardholder’s credit line for the amount of the transaction An authorization is required in order to complete a Sale transaction.
An authorization is a hold placed on your account for a purchase. When the merchant receives authorization to place the charge on your credit card account, that amount is subtracted from your available credit. The authorization stays on your account for four business days or until the charge posts, whichever is first. An authorization will immediately reduce your available credit, but it does not affect the balance you owe until the charge is actually posted to your account.
