When a customer attempts to place an order but encounters an error before the transaction completes, they may nonetheless see a “pending” deduction on their card or bank statement. This phenomenon—known as an authorization hold—occurs because, at the moment the customer submits payment details, the issuing bank temporarily reserves the requested funds to verify card validity, check for sufficient balance, and run fraud‑prevention checks. However, if a network glitch, timeout, validation error, or additional security screening interrupts the final “capture” step, no order record is created in our system even though the hold remains on the customer’s account.
Authorization holds serve several important purposes. First, they ensure that the funds will be available should the merchant later capture the transaction. Second, they protect both the customer and merchant by flagging suspicious activity before settlement. Third, they allow the merchant to confirm payment details without immediately posting a charge, which is especially useful for businesses that need to verify inventory or perform manual order reviews.
These holds typically expire automatically within three to seven business days—though in rare cases they may persist up to thirty days—at which point the reserved funds are released back to the customer’s available balance without any action required. The exact duration depends on the card network (e.g., Visa, Mastercard, American Express) and the policies of the issuing bank. During the hold period, the customer’s available balance will show the funds as “pending,” but the actual account balance remains unchanged until the hold is lifted or converted into a charge.
To reassure customers who see a charge without an accompanying order, customer service representatives should explain that no funds have been permanently taken and that the hold is a temporary reservation. Communicating the expected timeline—that holds clear in three to seven business days under normal circumstances, and up to thirty days at maximum—helps set proper expectations. Representatives should emphasize that the bank will return the money automatically and that no further action is needed on the customer’s part. If a hold does not clear after thirty days, customers should notify us with details (date, amount, and last four digits of the card) so we can escalate the matter with the bank on their behalf.