Finance glossary
Authorisation
Also known as: Auth hold, Card authorisation, Pre-authorisation
In simple terms
Authorisation is the moment your bank approves a card payment and sets aside the money — even though the payment may not fully leave your account until a day or two later.
On this page
What does authorisation mean?
When you pay by card, the retailer’s system asks your bank whether the payment can go ahead. If you have the funds and the card is valid, the bank authorises it and reserves that amount against your balance. This is the authorisation.
Authorisation is not the same as the money actually moving. It is an approval and a hold; the funds “settle” — leave your account for good — a little later, usually within a day or two.
How authorisation works
Some businesses take a pre-authorisation — an “auth hold” — for an estimated amount rather than the final figure. Hotels, car hire firms and fuel pumps often do this, reserving a sum to cover what you might spend before the exact charge is known.
Once the final amount is confirmed, the correct charge settles and any excess hold is released. Releasing a hold can take a few days, during which that money shows as unavailable even though it has not been spent.
How could this affect me?
An authorisation hold reduces your available balance straight away, which can catch you out if you are running close to zero — a fuel or hotel hold might temporarily reserve more than you actually spend.
If a hold is not released promptly, or an authorised payment looks wrong, your bank can chase it up. Genuinely unauthorised card payments must be refunded under payment services rules.
Things to watch out for
- An auth hold reduces your available balance before the money has actually gone.
- Hotels, car hire and fuel pumps often reserve more than the final charge.
- Releasing an unused hold can take several days.
- A declined authorisation may simply mean a temporary check, not that anything is wrong with your account.
Know your rights
- Card payments you did not authorise must be refunded by your bank under the Payment Services Regulations 2017.
- If a hold or authorised charge is handled unfairly, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- UK Finance, How card payments are authorised and settled (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Understanding card payments and holds (opens in a new tab). Accessed 22 Aug 2026.