About Credit Card Authorization Hold for Your Purchase
- June 3, 2024
- MyBat
Table of Contents
About Credit Card Authorization Hold for Your Purchase
WO scenarios that we are aware of, which may cause two or multiple charges appeared on your bank or credit card account.
1. If you are using a debit card from some certain banks, the actual charges
are being processed separately from the authorization hold.
For example, if you are making a purchase of $500. If the bank
considers and processes the charge as a separate charge (even we have
submitted the charges as a settlement with the same authorization code), you
will see two charges on the same amount on your online statement. Usually,
the authorization charge will be automatically dropped in 3-5 business days.
And, you will result in only one charge in the correct amount onto your
bank/credit card account, but for those few days, your funds will be held and
will not be available to use until released.
2. In rare cases, when the settlement amount is different than the original amount that we have pre-authorized, your bank will not only process this as a separate payment; but it will internally issue a new authorization hold, and wait for the charges to come through by settlement as another charge.
For example, if you are making a purchase of $500. Our system will pre-authorize $500 for an authorization hold. When the shipment is sent or invoiced, our bank will settle for a different amount, say, $495 to your bank or credit card account using the authorization hold. Your bank will issue a new authorization hold for $495.00 and when the charges are finally settled by your bank, it will then charge another $495 onto your account. In this case, you have been charged three times. Understandably, the two authorization charges will be automatically dropped in 3-5 business days, and you will, however, be charged three times in the interim, and your funds will be held and will not be available to use until released.
Here, at Valor, we do not have access to change or update any of the authorization hold issued by your bank or credit card company, nor we can call your bank or the credit card company on your behalf. The only way to possibly resolve this is for you to contact them directly and request a review on all your recent charges in details with an on-duty customer service manager with the bank or the credit card company.