What is "PREAUTH" on my bank statement?

PREAUTH is usually a temporary card hold, not a final charge. It often disappears when the merchant completes or releases the transaction.

Merchant: Preauthorization Hold | Category: Financial Services

What Is This Charge?

A charge from PREAUTH reflects a temporary card authorization, not a final purchase. It is used by banks and merchants to verify that a card is valid and that enough money is available before the final amount is posted. PREAUTH is not tied to one store or one company, so it can appear after gas station pumps, hotels, car rentals, restaurants, delivery apps, or online checkouts. The hold usually disappears or converts to a final charge when the merchant completes the transaction.

Why Does This Charge Appear on My Statement?

PREAUTH appears when a merchant places a hold at the start of a transaction. A hotel may authorize $100 to $300 at check-in, a gas station may hold $1 to $175, and a restaurant may authorize the bill plus 15% to 25% for a tip. A delivery app, rental car desk, or online seller may also use PREAUTH when the final total is not known yet. The charge can stay pending for 1 to 10 business days, and it may drop off if the merchant never captures it.

Typical Charge Amounts

PREAUTH amounts are usually temporary and often do not match the final purchase total. Common hold amounts include $1, $25, $50, $100, $150, $200, and $300, depending on the merchant type. Hotels and car rentals often place higher holds of $100 to $500, while restaurants often authorize the meal total plus 20% for gratuity. Some merchants also use a $0.00 or $1.00 test authorization to confirm that the card is active.

Common Variations

PREAUTH PREAUTH PENDING PREAUTH HOLD PRE-AUTH PREAUTHORIZATION PREAUTH 1234 PREAUTH #1234 PREAUTH STORE 1234 PREAUTH TXN 123456 PREAUTH ONLINE

Is This Charge Legitimate?

PREAUTH is usually legitimate when you recently made a purchase, checked into a hotel, rented a car, ordered food, or started an online checkout. First, compare the amount and date in your banking app with recent receipts, email confirmations, or app order history. Second, check the merchant’s app or website for a pending authorization, because many merchants show the same hold before it posts. Third, call the number on the back of your card or the merchant’s posted support line if the hold is older than 10 business days or if you do not recognize the transaction.

How to Dispute or Cancel

1. Contact the merchant first and ask them to void or release the authorization, because only the merchant can remove most pending holds. 2. Ask for the exact authorization date, amount, and reference number, then save the confirmation email or case number. 3. If the hold is still pending after 10 business days, call your bank or card issuer and start a dispute using the number on the back of your card. 4. If the charge is tied to a hotel, rental car, or subscription trial, review the cancellation policy in the booking confirmation or terms page before filing the dispute. 5. If you suspect fraud, freeze the card in your banking app immediately and request a replacement card.

Frequently Asked Questions

Why does my PREAUTH charge show as PREAUTH PENDING?

PREAUTH PENDING means the merchant placed a temporary authorization and your bank has not received the final capture yet. This is common for hotels, gas stations, restaurants, and online checkouts. The amount can stay pending for several days and then disappear or change to the final posted charge.

How do I cancel my PREAUTH subscription?

PREAUTH is usually not a subscription, so there is often nothing to cancel on the bank side. If it came from a trial, hotel booking, rental, or app checkout, contact the merchant directly and ask them to void the authorization. Then check your bank app for the pending hold and call your card issuer if it does not clear after 10 business days.

Why is my PREAUTH charge a different amount than expected?

The amount can differ because PREAUTH is often only a hold, not the final bill. Gas stations, hotels, and restaurants commonly authorize more than the expected total to cover fuel, incidentals, taxes, or tips. The final posted amount may be lower, higher, or absent if the merchant releases the hold.

How long does a PREAUTH hold stay on my card?

A PREAUTH hold often stays pending for 1 to 10 business days, depending on the merchant and card network. Some holds clear in 24 to 72 hours, while hotel and rental car holds can last longer. If it remains after 10 business days, contact the merchant and then your bank.

Can a PREAUTH charge become a real charge later?

Yes, a PREAUTH hold can become a posted charge when the merchant completes the transaction. This happens after checkout, after a restaurant adds the tip, or after a hotel finalizes incidentals. If the merchant never captures it, the hold should fall off automatically.

Similar Charges

  • PREAUTH
  • PREAUTH PENDING
  • PREAUTH HOLD
  • PRE-AUTH
  • PREAUTHORIZATION

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