Pre-Authorization Holds & Releases

Pre-Authorization Charges on Your Gift Card

When using your Visa or Mastercard gift card at certain locations, a pre-authorization charge may automatically be added to your bill. This is common at:

Restaurants & Salons (most tipping establishments) 

The merchant will typically request an authorization for approximately 20% more than the anticipated purchase amount to accommodate a gratuity that may be added to the receipt after the card is swiped.

• Example: Your total at a restaurant is $63. Your card will be swiped and an additional 20% charge ($12.60) will be added making your total $75.60.
  • The transaction will be declined if this amount exceeds the balance on your card.
  • The transaction will be successful if there are sufficient funds on your card. If a tip is not added to the receipt or paid with another form of payment, the $12.60 will be returned to your card's balance within 5-7 business days.

Gas Stations

Always pay the cashier inside and advise the exact amount you want the card authorized for.

• If you swipe your card at the pump the merchant will authorize the card for approximately $100 to $200.
• Pre-authorization holds on funds generally expire in 4 days and the funds will be again available on your card without further action required.\

Hotels, Cruises, Car Rentals

Includes hotels, cruises, car rentals, and more.

• An additional 20% more than the anticipated purchase may be added
• Funds may be held for up to 30 business days before being made available on your card.

How Pre-Authorization Affects Your Balance

• Temporary Hold: Pre-authorization charges are temporary holds that may exceed the actual purchase amount.
• Incorrect Balance: This hold can result in an incorrect balance being displayed on your card, making it appear lower than it is.
• Declined Transactions: If the pre-authorization amount exceeds the available balance, your transaction may be declined due to insufficient funds.

These pre-authorization holds usually clear within a few days, and your balance will be updated once the hold is released.

To learn more :