July 22, 2026 · 4 min read · Glossary
What Is a Pre-Authorization Hold?
A pre-authorization hold reserves money on a card without charging it. What a hold is, how long it lasts, why it differs from a charge, and where it is used.
Pre-authorization hold: definition
A pre-authorization hold is when a business reserves an amount on your card without actually charging it. The money is set aside from your available credit or balance so the business can capture it later if needed — but until it does, nothing has been paid. If no charge is made, the hold is released and the amount returns to your available funds. It is the standard way to take a security deposit, and the mechanism behind car-rental and hotel "holds."
Hold vs charge
A charge moves money out of your account; getting it back needs a refund. A hold only reserves it — release it and no money ever moved. On a credit card, a hold touches your available limit, not your cash. The full comparison is in pre-authorization vs charge.
How long does a hold last?
A plain authorization typically lasts around 7 days before it lapses, though some card types allow longer. For agreements that run for months, businesses renew the hold before it expires so protection spans the whole term — how that works is covered in how long a business can hold a deposit.
Where holds are used
Car rentals, hotels, holiday homes, equipment hire, and increasingly tenancies — any situation where a business needs security but the customer should keep their money. Akara builds deposit management on the hold model for UAE businesses: reserve, release, or claim, all documented. See how card holds work for car rentals for a real example.