When a cardholder performs a payment and the transaction is successfully authorized, their funds are temporarily held.
After authorization, the hold on the funds may need to be released. For example, if:
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You or the cardholder void the payment. For example, if the item the customer purchased is out of stock and you're unable to fulfill the order.
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You do not capture the funds within the issuer's authorization validity period.
The exact timeline that funds are released back to the cardholder varies:
- For voided payments, funds are typically released back to the cardholder within 7 to 15 business days.
However, due to some issuers' internal procedures or regional banking regulations, this may take up to 4 weeks in extraordinary circumstances.
- For authorizations that are not captured, Checkout.com releases the authorization 14 days after the original authorization date. The issuer automatically releases the funds at the end of the validity period.
The cardholder can contact their bank and provide the Authorization Reference Retrieval Number (RRN) to trace the hold release.
The release of previously held funds is not classed as a refund and therefore may not generate customer notifications.These timelines are a guide—Ultimately, the cardholder’s issuer determines when funds are released. For further clarification, contact your issuer directly.