What Is a Credit Card Hold?
In a credit card, a certain amount of credit will be momentarily authorized by the credit card issuer to be used in a certain purchase. This is usually practiced when the money has not been paid by the merchant to the cardholder. The hold restricts the cardholder from using the authorized amount to make any other purchases until the transaction has been well executed or canceled.
Reasons You Might Place a Hold on Your Credit Card
- Suspected fraud activity: Sometimes, the credit card company will shut off the account temporarily until such a time when further investigation can be done.
- Account Review: A credit card company may place an account on hold for review, whatever the reason is.
- Late or Delinquent Payments: If a cardholder is making late payments on his credit card, an account hold may be granted until such a time as the account is brought current.
How Long Do Holds Last on Credit Cards?
Essentially, holding cards longer than one should is never recommended. The merchant must have his authorization at any one time. It is helpful to understand the maximum possible time an authorization can be held both to prevent misuse charges and also to advise …
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