What is an authorization?

When you use your debit card for a purchase, the merchant will request approval or an “authorization” for the transaction. This authorization generally confirms that an account is open and active and there are enough funds available to cover the purchase amount at the time of the request. The purchase amount sent by the merchant for authorization varies by merchant type. Many merchants request an authorization for the exact purchase amount. However, some merchants may send a nominal amount such as $1, or an estimate that is more or less the actual purchase amount. Each authorization may show a pending transaction. When the transaction is presented to the credit union, the actual purchase amount is deducted from your account, usually within 2 to 3 business days. If the authorization is not matched to an actual purchase amount within 3 business days, the transaction will no longer be displayed. This sometimes occurs when the merchant sends an authorization only to verify that the card is open.