I tried to make a purchase and my card was declined but I still show a charge. Why is that?

I tried to make a purchase and my card was declined but I still show a charge. Why is that?
January 30, 2020 admin

When transacting through credit cards there are two types of transactions that occur. One is called an authorization and the other is called a capture. An authorization is the first thing that is done whereby the bank puts the amount of the charge on hold returning a message to the processor that the funds are available.

The next step is called a capture. It is at this step that the bank will verify that the information entered into the checkout form under “Billing Address” is accurate. This means that the street address and zip code match exactly to what the bank has on file for your account. If the billing address is incorrect by even one number then a capture will fail and no signal to remove those funds from your account will be sent. Hence an error on checkout. When incorrect billing information is entered we will have a case where the authorization (do the funds exist) was successful but the capture (did they enter the correct identifying information to show that the transaction isn’t fraudulent) was unsuccessful. This means that when you look at your bank statement or online account you will see what looks like a charge from us. This is not a charge from us as the capture failed. This is simply an authorization which we release immediately.

Each bank has their own policies regarding authorizations though and most banks will not return those funds to your account until 48 business hours have passed. Some unfortunately take a bit longer up to 5 business days. This is the policy of your individual bank and we have no control whatsoever over how long they choose to hold your funds. Because of this it is very important that you triple check your billing information prior to submitting your order.

NB: Please note that if you ask the bank, they cant tell the difference on their end between an authorization and a charge. But in your account the charge will show as pending and then disappear. This is simply how it works.