In situations where the exact fee for a service or good is unknown until after the service/good has been received, the merchant may apply a pre-authorization for a specific dollar amount. Examples include:
- Car rentals
- Airline tickets
- Gas stations
Pre-authorizations are used to reserve a certain amount from your card to make sure that money is available to complete the transaction once the final amount is known. Preauthorization charges are usually reversed in 7 to 10 business days once the actual charge is applied to the card. A hold is an authorization on your account that has not yet been collected by the merchant. The funds are in a hold status because the merchant has been authorized to collect those funds. The balance is the amount of funds available on the card after pre-authorizations and holds are deducted. After login, the Card Account Details include the holds and balances on the account. We advise all cardholders with pre-authorizations or holds to check their balance via your account at https://account.myfancard.com/login and to contact the merchant first if the pre-authorization or hold is not released.