Travel payments glossary

Authorisation hold

A temporary reservation of funds on a card before the merchant captures the payment.

Plain-English definition

An authorisation hold places a temporary block on funds in the cardholder’s account when a payment is authorised but not yet captured. The funds are reserved against the card limit but do not move until the merchant captures the transaction, and the hold expires after a set number of days if no capture happens. Pre-authorisations on hotel rooms, hire cars and deposits are the most common consumer-facing examples.

Why it matters in travel

Travel uses holds whenever the final amount is not known at the point of sale or when funds need to be reserved against a deposit before the balance is captured later. Holds that linger past their expiry create customer frustration when a card balance still shows the blocked amount, and they create operational risk if the booking is captured against an expired hold.

For travel customers, an unresolved authorisation hold is more visible than most operational errors. The customer sees the amount blocked on their card balance, sometimes for days or weeks, even after the underlying booking has settled or the hold has expired. Each one becomes a customer-support call about money the operator has not actually taken.

The travel businesses that handle holds well track open holds at the booking level and resolve them automatically — releasing on expiry, converting to capture when the booking firms up, and surfacing anything that has lingered too long. The businesses that do not track them carry a quiet stream of customer complaints about phantom charges.

How felloh helps

felloh tracks hold and capture state at the booking level so finance and operations can see what is reserved, what has captured, what has expired and what needs to be re-authorised before a balance falls due.

Connect the dots.

See how payments, settlement, refunds and reporting evidence connect around every booking.