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A credit card authorization is a process that verifies the validity of a credit card before a transaction is completed. It ensures that the card is not stolen or being used fraudulently.
A credit card authorization is necessary to protect both the merchant and the cardholder from potential fraud. It confirms that the card being used is valid and that the funds are available for the transaction.
During a credit card authorization, the merchant sends a request to the card issuer to verify the card information and the availability of funds. The issuer then either approves or declines the transaction based on the card's available balance and other security measures.
A credit card authorization typically holds funds for 1-7 days, depending on the card issuer and the merchant's processing time. Once the hold is released, the funds will become available again.
Yes, a credit card authorization can be canceled by the merchant if the transaction is not completed within a specific time frame, usually 1-7 days. The hold on the funds will then be released, and the cardholder's available credit will be restored.