What is a pre-authorization hold?

A pre-authorization hold happens when a merchant places a hold on a certain amount of funds on your card to verify that you have sufficient funds to pay for the transaction. As an example, a restaurant may pre-authorize a set amount when you open a tab. In the event that your bill is less than the pre-authorized amount, those remaining funds may be held for a period of time prior to being released to your available balance. Similarly, a car rental company or hotel may hold the amount equal to one day’s rental or stay. Also, please note that gas stations generally perform pre-authorization holds for approximately $50 when you choose to pay at the pump with your card. If, however, you pay for the gas inside, only the actual purchase amount will be deducted from your card balance. Note: The value of the pre-authorization hold amount may not be available to the cardholder for eight business days.