When making an online purchase with a credit/debit card, the transaction is first "pre-authorized" by the merchant, and then reviewed to be approved/declined. The entire process takes only a few seconds.
In some cases, if the charge is pre-authorized but later declined, it may result in a pending pre-authorization charge. It's basically a hold on funds; meaning the funds never leave your account but are "frozen" until the pre-authorization charge expires.
Generally, pre-authorization charges are given an expiration date of up to 7 business days, though it depends on the merchant.
|