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A credit card authorization is a process where a merchant obtains approval from a credit card issuer to charge a customer's credit card for a purchase or transaction. This is typically done to ensure that the customer has sufficient funds or credit available to cover the charge.
When a customer makes a purchase using a credit card, the merchant sends a request for authorization to the credit card issuer. The issuer then verifies the customer's account and available credit, and either approves or declines the transaction. If approved, the issuer will reserve the necessary funds for the transaction to be completed.
A credit card authorization is necessary to protect both the merchant and the customer from fraudulent or unauthorized charges. It ensures that the customer has the funds or credit available to cover the purchase, and also provides proof of authorization in case of a dispute.
The length of time that a credit card authorization holds funds varies depending on the credit card issuer and the type of transaction. Typically, the hold will last anywhere from a few days to a few weeks, but in some cases, it may last up to 30 days.
In most cases, a credit card authorization can be canceled by the merchant or the credit card issuer. If the transaction has not been completed, the hold on the funds will be released and the customer's available credit will be restored. However, if the transaction has already been completed, the authorization cannot be canceled and the customer will need to request a refund for the charge.