In plain English
This means the transaction amount is set aside for now, so it is not part of the cardholder’s free balance or credit. The payment has been approved, but it has not become a finished charge yet.
In context
Here, “authorization hold” labels the card transaction’s authorization state as approved with its amount temporarily set aside, but not yet completed as a charge.
- Situation
- Reading card, bank, wallet, authorization, decline, pending, and settlement states
- What it communicates
- labels the card transaction's authorization state before final completion.
Meaning limits
By itself, this term does not say whether the transaction will later become a completed charge.
Examples
“The hotel placed an authorization hold on her card, so the amount was missing from her available balance even though no charge had posted.”
“After the card was approved, the estimated fuel cost sat as an authorization hold until the final total arrived.”