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 💸.

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