Re-Authorization

To request an additional amount to be authorized on an existing transaction. Used in lodging and hospitality when the original authorization is not sufficient to cover the charges.

Credit card authorizations have time limits, which can vary from 24 hours to 31 days. Credit card reauthorizations occur when a transaction has passed that limit without the fulfillment of the original order. The transaction can be re-authorized without a new authorization request.

This can happen normally in various scenarios. One good example is free trials: trials typically last 30 days or more, but a card’s authorization time limit might only be 10 days, meaning the authorization will expire while the trial period is still in effect. Through reauthorization, the initial authorization is effectively held  open until either the trial ends or the cardholder cancels.

The cardholder will be notified via email before a re-authorization goes through, and a new authorization will appear on their account. That can be confusing, but the old authorization will usually fall off in 24-48 hours. The customer will not be charged twice.