Authorization holds (also referred to as pre-authorizations, pre-auths, or auths) are a way for the merchant to ensure that you have enough funds in your account to complete the purchase. The merchant puts a hold on those funds and can either complete the transaction by collecting the funds or allow the authorization to expire, in which case, the funds will be returned to your account 💰

When the merchant collects the funds, the amount that was "authorized" is then marked as "settled" and the merchant receives the funds. This will complete this transaction 💸

If the merchant fails to collect the payment, the transaction will instead expire* and return to your KOHO account in approximately 5 business days. 

You can check the authorized/settled status of a transaction in-app by selecting on the specific transaction in your Activity Feed.

*Unfortunately we do not have the ability to expedite the second authorization's expiry. Please wait the 5 business day timeframe for the funds to return. 

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