Authorization hold

Authorization hold (also card authorization, preauthorization, or preauth) is the practice within the banking industry of authorizing electronic transactions done with a debit card or credit card and holding this balance as unavailable until either the merchant clears the transaction, also called settlement, or the hold "falls off." In the case of debit cards, authorization holds can fall off the account, thus rendering the balance available again, anywhere from 1 to 8 business days after the transaction date depending on the bank's policy. In the case of credit cards, holds may last as long as 30 days, depending on the issuing bank.