What does an Authorized purchase mean?
Every card payment happens in two stages: the merchant Authorizes the purchase to reserve the funds, then Completes it to actually claim them. This is why a transaction's amount or status can change shortly after you pay.
Authorized (Pending) - Funds are HELD
When you make a purchase, the merchant places a hold on the purchase amount via your card. This transaction shows as Authorized in your dashboard, but no money has moved — the funds stay in your Halocard account, reserved against your available balance.
The hold can be for $0 (the merchant is checking your card is valid), a partial amount like a deposit (e.g. hotels, car rentals, fuel pumps), or the full purchase amount (most everyday purchases). While a transaction is Authorized, it cannot be cancelled or disputed and only the merchant can release the hold.
Pending Refunds also show at Authorized
Refunds may initially appear as charges that are equal or less than your original purchase amount with the status Authorized. This is normal and you will need to wait 1 - 3 business days for the transactions to settle via Visa in order for the refund to show as a credit on your account. See the article: How do refunds work on Halocard?
Completed (Settled) - Funds are WITHDRAWN
When the merchant claims the funds (usually within 3 business days or up to 7 for hotels, rentals, and pre-orders), the transaction moves to Completed and the funds are taken from your balance by Visa to pay the merchant. This is known as settlement.
Why the amount can change
It's normal for the Completed amount to differ from the Authorized amount:
Scenario | What happens |
|---|---|
Restaurants, salons | Authorized for the bill, Completed with tip added |
Fuel pumps | A $1 or $100 hold is replaced by the actual fuel amount |
Hotels, car rentals | The pre-authorization is replaced by the final cost |
Foreign currency | Exchange rate shifts slightly between the two stages |
Partial fulfilment | The merchant only charges for items that shipped |
Refund | Refunds initially appear as charges and then show as credits after settlement |
In each case, the Authorized hold is released and the Completed amount is the true charge.
If a transaction stays Authorized
If the merchant never claims the funds, the hold expires automatically and the money returns to your available balance, usually within 7 days, but sometimes up to 30. To speed things up, contact the merchant and ask them to void the authorization.
Updated on: 07/08/2026