What is a debit card hold?

When you use a debit card, the store clerk usually contacts the financial institution that issued your card to get an authorization. When the approval is given, the balance in your checking account is reduced or "blocked" by the amount of the purchase. This is known as a pre-authorization hold. The merchant determines the amount of the hold. Your financial institution establishes the length of time the hold remains in place. Typically the hold stays on your account until the funds are transferred to the merchant from your financial institution, often 3-4 days. If you look at your account online it may show as a pending transaction. Since transactions done with your PIN (personal identification number) are processed on the same day, they do not require a hold. ... more