What is a pre-authorization and how long does it last?
A pre-authorization, or estimated authorization, holds an amount when the final price is not yet known, as for hotels, car or bike rentals. With Visa, it can stay valid up to 30 days for lodging and vehicle rental, and 10 days for other rentals. With Mastercard, the usual window is 30 days. The merchant must capture or release it before it expires. See Authorization vs Capture.
In detail
A pre-authorization is an authorization for an estimated amount. It is used when the final price depends on what happens next: nights in a hotel, days of car rental, hours of bike rental, fuel at the pump.
How long it lasts
- Visa: since April 2024, estimated authorizations are valid for 30 calendar days for lodging, cruise lines and vehicle rental, and 10 days for other rentals such as bikes, boats or equipment.
- Mastercard: pre-authorizations usually have a 30-day clearing window, while final authorizations must be cleared within 7 days.
What the merchant can do
If the bill grows, the merchant sends an incremental authorization, which can also extend the validity. When the final amount is known, it captures that amount and releases the rest. If the service is cancelled, it reverses the whole hold.
Captures after the window can be declined, charged a fee or disputed. Read Authorization vs Capture and the episode on void transactions.