How Does an Authorization Hold Affect Your Available Balance Sample Clauses
This clause explains how an authorization hold impacts the funds available in your account. When a transaction is initiated, the bank or card issuer may place a temporary hold on a portion of your balance to ensure funds are available for the pending payment. For example, when you use your debit card at a hotel or gas station, the amount of the anticipated charge is set aside and cannot be used for other transactions until the hold is released or the transaction is finalized. The core function of this clause is to inform account holders about temporary restrictions on their funds, helping them understand why their available balance may be lower than their actual account balance and preventing confusion or overdrafts.
How Does an Authorization Hold Affect Your Available Balance. Until the transaction finally settles or we otherwise remove the hold (for example, we may remove the hold because it exceeds the time permitted or we determine that it is unlikely to be processed), the funds subject to the hold will not be available to you for other purposes. At some point after you sign for the transaction, it is processed by the merchant and submitted to us for payment. This can happen hours or sometimes days after you signed for it, depending on the merchant and its processing company. We have no control over when a merchant may present an item for payment. Merchant payment requests are received in real time throughout the day and are posted to your account as they are received.