A Card Hold is a temporary reservation of funds on a customer’s account initiated by a merchant. It reduces the customer’s “available balance” but doesn’t actually debit the account until the transaction is settled. This is common in gas stations, hotels, and rental agencies.
FAQs:
- How do I release a card hold?
You can release it by voiding the authorization in your dashboard. Otherwise, it will expire automatically (usually after 7 days). - Why can’t the customer use the held money?
The bank “freezes” that specific amount to ensure the merchant gets paid if they proceed with the charge. - Can a card hold cause an overdraft?
Yes, if the hold amount plus other spending exceeds the account balance, even if the final charge ends up being lower.
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