Note: For Singapore users, please refer to this article instead:
Order Cancellation and Credit Card Authorization Hold for SG Users
What is an Authorization Hold?
An authorization hold is a temporary deduction from your available credit or account balance. It happens when a merchant asks your bank to approve a specific amount before the actual payment is completed.
Why is an Authorization Hold Required?
Authorization holds are used to verify that the buyer has enough funds or credit to cover the purchase amount. This helps prevent payment issues later in the transaction process.
How Does an Authorization Hold Work?
When you place an order, a request is sent to your bank to authorize a certain amount.
The bank temporarily holds this amount, making it unavailable for other use.
The amount is only charged when the seller finalizes and accepts the payment.
Common Misconception: Double Charging
It may seem like you've been charged twice — once for the authorization hold and once for the actual transaction. In reality, the hold is just temporary and will be replaced by the final charge once the transaction goes through.
What Happens When an Order is Canceled?
If your order is canceled before payment is completed, the held amount will be fully released by your bank. Once released, it's as if the transaction never happened.
Why Does It Take a Few Days to Get the Amount Back?
The delay is usually due to internal processing times between the bank and the payment network. Most banks take a few business days to update your balance after canceling a transaction.