An authorization hold (sometimes known as a “pre-authorization” or “pre-auth”) can happen when you make a purchase using your Varo Bank debit card or Varo Believe card. This hold locks the funds in a pending status until the merchant settles the transaction for the final amount. You may see a higher dollar amount pre-authorization for certain transaction types such as (but not limited to): booking a hotel, cruise or rental car reservation, paying for gas at the pump, or buying an airline ticket.
Transactions with a higher dollar amount pre-authorization will typically settle for the actual transaction amount within a few days. If the pre-authorized transaction was canceled or voided, the merchant will need to release or expire the funds. Once the funds are released or expired, they're available again for spending. While merchants can release a hold early, Visa® will automatically expire transaction types if they remain in a pending status on the account after the allotted time frame.
There's standard pre-authorization hold timeframes set by Visa® for each transaction type where the transaction will either settle for the actual amount or expire if canceled or voided:
- Fuel or gas transactions expire after 5 calendar days + 1 business day from the transaction date shown in your app.
- Everyday purchases and airline transactions expire after 7 calendar days + 1 business day from the transaction date shown in your app.
- Hotel or car rental transaction holds expire after 31 calendar days plus 1 business day from the transaction date shown in your app.
If you have any questions regarding your hold, reach out to the merchant.