Glossary: the words on your statement, translated

Clear definitions for the language merchants, card issuers, and health plans use.

Authorization

The card issuer's approval for a merchant to reserve or charge an amount. Every card payment — and every hold — starts with one.

Available credit / available balance

What you can actually spend right now: your credit limit (or account balance) minus posted transactions and pending holds.

Capture

The merchant's step to complete an authorized payment — turning a reservation into the final charge for the actual amount.

Chargeback

A card-scheme process for recovering a payment, available on debit, credit, and prepaid cards. In the UK it is separate from Section 75 and generally must be started within 120 days.

Continuous payment authority

The UK term for a recurring card payment. It is not a Direct Debit and is not covered by the Direct Debit Guarantee; you can ask the business or your card issuer to cancel it.

Hold (pre-authorization hold)

A temporary reduction in available credit or bank funds while a merchant reserves an estimated amount.

Incidental hold / deposit

The buffer merchants add above the expected bill — hotels for room charges and extras, rental companies for fuel, damage, or late return.

Pending

The status of a transaction that has been authorized but not yet completed or settled. Holds live in pending.

Posted

A completed transaction with a final amount, shown in your settled account activity.

Pre-authorized debit (PAD)

In Canada, an agreement allowing a biller to withdraw money from a bank account — not a card hold.

Prior authorization (medical)

In U.S. healthcare, a health plan's approval before it covers certain prescriptions, tests, procedures, or services. Unrelated to card holds.

Reversal

A message releasing an authorization that will not be captured as originally approved — the message that actually frees a hold.

Section 75

Section 75 of the UK Consumer Credit Act: for qualifying credit purchases priced over £100 and up to £30,000, the card provider can be jointly liable with the supplier for breach of contract or misrepresentation.

Settlement

The movement and reconciliation of funds after a transaction is completed.