An authorisation hold is an amount blocked on a card account that hotels and car rental firms use to secure a later payment.
An authorisation hold is an amount blocked on a card account that hotels and car rental firms use to secure a later payment.
Also called: Pre-authorisation, Card deposit.
How it works#
The money is not charged but reduces available credit until the hold is released, which often takes several days after checkout. With rental cars the hold can be several times the rental price because it covers the deductible. On debit cards the funds are genuinely frozen, which can become a liquidity problem mid-trip.
Not to be confused with#
An authorisation hold is not the same as a charge: it reserves an amount, while the final transaction may be higher, lower or never happen at all.
In German#
The German term is Vorautorisierung. German version of this term
Related terms#
- Credit limit: A credit limit is the maximum balance a card account may carry between statements.
- Collision damage waiver: A collision damage waiver is the rental company’s promise not to pursue the renter for damage to the vehicle, usually subject to a deductible.
- Deductible: A deductible is the amount the insured person pays on every claim before the insurer covers the remainder.
Articles that use this term#
TopicEvery article and term onCards and money.