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Frequently Asked Questions
A pre-authorization hold is atemporary hold placed on your credit or debit card by amerchant processor to verify the card is valid andthat you have enough funds to cover a purchase.
The merchant’s processor pings your bank to confirm the account is active andhas sufficient funds. Your bank approves this initial check, creating a pending transaction.
Credit card networks ( Visa/Mastercard, American Express…) dictate the hold amounts allowable in specific industries.
It decreases your available balance but is not a permanent charge.
The timeline for the pending transaction to drop off depends entirely on your financial institution and the type ofcard used:
- Debit Cards: Money is tied up immediately. The pending hold usually drops off and returns to your available balance within I to 5 business days.
- Credit Cards: The transaction temporarily lowers your available credit limit. The line item generally vanishes within 3 to 7 business days.
Declined transactions show on your account because your bank places a temporary hold on the funds during the pre-authorization stage before the transaction is officially rejected.
When you swipe your card your financial institution instantly lowers your “available balance” to ensure you have enough funds or credit. even if the transaction is rejected.