What is a pre-authorisation? Why hotels and fuel pumps hold money on your card
By SendPay Business · · 2 min read
A pre-authorisation is a temporary hold a business puts on part of your card balance before it knows the final amount. The money is not taken yet, but you cannot spend it while the hold is in place.
Where you see them
Hotels hold money for extras when you check in, car hire firms hold a deposit, and pay-at-pump fuel stations hold an amount before you fill up. Some online shops also authorise first and only take the money when they ship.
How it works
- The business asks the card issuer to reserve an amount.
- Your available balance drops, and a pending payment appears.
- When the final amount is known, the business completes the payment for that amount.
- Any unused hold is released, or it drops off after a set time.
How long holds last
It depends on the card issuer, the card scheme and the type of business. Many holds drop off within a few days to a week, while hotel and car hire holds can last longer. If a hold stays after you have paid, the business can usually ask for it to be released early.
Where SendPay fits
SendPay platforms include branded Visa cards for your customers, powered by licensed partners, and card payments made with them follow the usual card scheme rules for holds and releases.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.