Authorization Expiry

Authorization expiry is the end of the period during which an approved card payment authorization can be relied on. When a merchant authorises a payment but does not capture and submit it for clearing in time, the authorisation lapses. The issuer then releases the authorization hold on the cardholder's available balance, and the merchant can no longer count on the scheme protections linked to that approval. Card schemes set the validity periods in their rules, and they vary by authorisation type and merchant category: ordinary sales usually allow several days, while hotels, car rental and other businesses with uncertain final amounts are allowed longer. A merchant that captures after expiry may still be paid, but risks a decline-related chargeback. To avoid this, merchants using delayed capture track expiry dates, use incremental authorization where allowed, or obtain a fresh authorisation, and send an authorisation reversal when they no longer need the funds.