Authorization Reversals Summary

In order to fully understand the credit card processing and payment landscape, merchants need to know the difference between an authorization reversal and an authorization hold. In the banking industry, all electronic transfers, including credit and debit card payments, must go through an authorization hold. With respect to the credit card payment and processing industry, an authorization hold is the practice of approving electronic debit and credit card transactions for payment by the issuer to the merchant.

Authorization Holds vs. Authorization Reversals
When customers use their cards, merchants swipe the card, and that information is sent to the merchants’ credit card processor. Once the credit card processor verifies that the customers’