If you run a business where the final charge isn't known at the time of booking — think hotels, rentals, or event venues — you need a way to hold money on a customer's credit card without actually charging them. This is called a pre-authorization or authorization hold.
Most merchants know that hotels and car rental companies do this, but assume it requires expensive point-of-sale terminals or custom API development. It doesn't. This guide explains how credit card holds work from the merchant's perspective and how to implement them for your business.
What Is a Credit Card Hold?
A credit card hold (pre-authorization) is a temporary reservation of funds on a customer's credit card. The merchant requests the hold, the card issuer verifies that funds are available, and those funds are marked as unavailable to the cardholder — but no money actually moves.
The process involves three parties: the merchant (you), the payment processor (Mollie, in the case of PayRequest), and the card issuer (the customer's bank). When you initiate a hold, your processor sends an authorization request to the issuer. The issuer checks the account and, if approved, reserves the requested amount.
From the customer's perspective, a hold appears as a "pending" transaction on their credit card statement. Their available credit decreases by the held amount, but their statement balance doesn't change.
For example, if a customer has a €5,000 credit limit with €3,000 available and you place a €500 hold, their available credit drops to €2,500. Their statement still shows €2,000 in charges — the €500 hold is separate.
When you release the hold, the pending transaction disappears. Unlike refunds (which can take 5–10 business days), released holds typically clear within 1–3 business days.
A regular credit card charge is a one-step process: authorize and capture simultaneously. Money moves from the cardholder to the merchant immediately.
A pre-authorization is a two-step process: authorize first, capture later. The authorization step verifies and reserves funds. The capture step — which can happen minutes, days, or weeks later — actually transfers the money.
This two-step process is what makes holds valuable for businesses. Between authorization and capture, you can inspect the property, check the vehicle, or tally up additional charges. Then you capture exactly what's owed.
How Long Can You Hold Money on a Credit Card?
Hold durations depend on your merchant category, the card network, and the issuing bank. Here are the general guidelines.
For most merchant categories, Visa and Mastercard allow authorization holds of 7 to 10 days. After this period, the authorization expires and funds are automatically released.
Hotels and accommodation providers get extended hold periods — typically up to 28 to 31 days. This recognizes that hotel stays can be lengthy and damage assessment takes time after checkout.
Car rental companies also receive extended periods, usually 28 to 30 days. Vehicle inspection often uncovers issues days after the rental ends.
With PayRequest's security deposit feature, you can configure hold durations from 1 to 28 days regardless of your standard merchant category. Mollie's manual capture mode supports this range, giving you flexibility that traditional terminal-based holds don't offer.
The key is choosing the right duration. Too short, and the hold expires before you can inspect and decide. Too long, and you tie up the customer's credit unnecessarily. For most businesses, the service period plus 2–3 inspection days is the sweet spot.
When a hold expires without being captured, the reserved funds are automatically released. The pending transaction disappears from the customer's statement. You cannot capture an expired authorization — the window has closed.
If you still need to charge the customer after a hold expires, you would need to either process a new pre-authorization (requiring the customer to authorize again) or process a regular charge. This is why choosing the right hold duration upfront matters.
Three Ways to Settle a Hold
After placing a hold, you have three options. Each serves a different scenario.
Capture the entire authorized amount. Use this when the customer owes the full deposit — major property damage, total equipment loss, or a full service charge.
Example: You held €1,000 for a car rental. The vehicle was returned with significant body damage. You capture the full €1,000 to cover repair costs.
Capture less than the authorized amount. The captured amount is charged, and the remaining balance is automatically released. This is the most common outcome for deposit-based businesses.
Example: You held €500 for a vacation rental. After inspection, you find minor carpet staining. You capture €75 for professional cleaning. The remaining €425 is released to the guest.
You can make multiple partial captures if needed. Each capture reduces the remaining hold balance. Once the total captures equal the original authorization (or you explicitly release the remainder), the hold is settled.
Release the hold without capturing any amount. The pending transaction disappears entirely. No charge, no refund process, no waiting.
Example: You held €250 for a hotel stay. The guest checks out, housekeeping inspects the room, and everything is perfect. You release the full €250. The guest's available credit is restored within 1–3 business days.
How to Hold Money on a Credit Card Without Code
Traditionally, placing credit card holds required either a physical card terminal or custom API development. You'd write code to create a Stripe PaymentIntent with capture_method set to "manual", handle webhooks, build a capture interface, and manage hold expirations.
PayRequest eliminates all of that. Here's how to hold money on a credit card using a Smart Link — no code required.
In your PayRequest dashboard, create a new Smart Link. Select "Security Deposit" as the product type. Set the deposit amount and hold duration (1–28 days). Your link is ready to share.
Send the link to your customer however works best. Every Smart Link includes a QR code you can print for physical locations. Customers visit the link, enter their credit card details, and authorize the hold.
All active holds appear in your PayRequest dashboard. See hold status, remaining duration, customer details, and capture history. Click to capture (full or partial) or release. No API calls, no webhooks, no code.
Your customer receives a unique status page showing their hold details — amount, duration, countdown timer, and capture history. This self-service transparency reduces support requests dramatically.
Use Cases for Credit Card Holds
Place holds at check-in for room damage, minibar, and incidentals. Standard hold: €100–€500 for 14 days. Capture for any post-checkout charges or release if the room is returned in good condition.
Hold at pickup for fuel, tolls, and damage. Standard hold: €500–€2,000 for 7–14 days. Capture for fuel charges, toll fees, or repairs after the vehicle is returned and inspected.
Protect expensive equipment with a hold matching or near replacement cost. Standard hold: €200–€1,000 for 3–7 days. Capture for missing parts, damage, or extended rental periods.
Cover property damage, excessive cleaning, lost keys, and smoking violations. Standard hold: €250–€1,000 for 14 days. Essential for Airbnb hosts and direct booking properties.
Protect against venue damage, overtime charges, and noise violations. Standard hold: €500–€5,000 for 7 days. Capture for anything beyond normal wear and tear.
Technical Requirements
Authorization holds only work with credit cards — Visa, Mastercard, and American Express. Other payment methods like iDEAL, SEPA, and bank transfers process immediately and cannot hold funds.
Make this clear to customers before they reach the payment page. If your customer base primarily uses debit cards or bank transfers, pre-authorization may not be the right tool.
PayRequest uses Mollie as the payment processor for authorization holds. You need a Mollie account with manual capture enabled. PayRequest guides you through the setup.
Since PayRequest and Mollie handle all card data, you don't need to worry about PCI compliance. Card details are entered directly on the Mollie-hosted payment page. You never see or store card numbers.
Getting Started
Holding money on a credit card online doesn't require API skills, card terminals, or complex integrations. PayRequest's Smart Links give you a no-code way to place authorization holds, manage captures, and provide customers with transparent status updates.
The Business plan at €20/month includes all deposit management features. Start your free trial or learn more about security deposits.