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What is an authorization?

au-thor-i-za-tion
noun

An authorization denotes the formal request to charge a cardholder for a transaction. Although this action diminishes the cardholder's available spending limit, it doesn't instantaneously deduct funds from the account. To fully execute the charge, the authorization must go through a settlement process.

It's essential to recognize that authorizations have a finite lifespan. If left unattended beyond a specific timeframe, they eventually expire or "drop off." This expiration period commonly spans around 7 to 10 days. However, it's noteworthy that certain authorizations can persist for up to 30 days after their initial approval, albeit subject to a higher fee.