How Do You Spell AUTHORIZATION HOLD?

Pronunciation: [ˌɔːθəɹa͡ɪzˈe͡ɪʃən hˈə͡ʊld] (IPA)

The spelling of the word "authorization hold" can be broken down using IPA phonetic transcription. The first syllable, "au-", is pronounced /ɔː/, like the "o" in "or". The second syllable, "-thor-", is pronounced /θɔːr/, with the "th" sound like in "think" followed by the "or" sound. The third syllable, "-i-", is pronounced /aɪ/, like the "i" in "ice". And the final syllable, "-za-tion hold", is pronounced /ˈhəʊld/, like the word "hold". "Authorization hold" is a common term in banking and finance, referring to a temporary withholding of funds.

AUTHORIZATION HOLD Meaning and Definition

1. Authorization hold refers to a temporary freeze or withholding of funds on a credit or debit card as a security measure during a transaction or reservation. Also known as a pre-authorization or card authorization, it is a common practice employed by businesses such as hotels, car rental companies, and merchants.

   When a customer makes a reservation or initiates a transaction, the merchant requests authorization from the cardholder’s issuing bank to verify the availability of funds or credit limit. In response, the issuing bank places a hold on the specified amount on the customer’s account, effectively reserving those funds for the merchant. This ensures that the customer has adequate funds to complete the transaction and protects the merchant from potential payment disputes or fraud.

   The amount of the hold varies depending on the type of transaction or reservation being made. Typically, it is higher for potential expenses like hotel bookings or rental car services, as they tend to have additional charges beyond the initial payment. The hold may remain on the customer’s account for a certain period, usually until the completion of the transaction or as determined by the merchant's policies.

   Once the transaction is finalized, and the merchant processes the payment, the hold is lifted, and the actual charge is debited from the customer's account. In cases where the transaction is not completed, and the hold expires, the funds are released back to the customer, making them available in their account again.

Etymology of AUTHORIZATION HOLD

The word "authorization hold" does not have a specific etymology since it is a combination of two separate words with their own origins:

1. "Authorization": The word "authorization" comes from Middle English "authorisen", which originated from the Anglo-French word "autoriser" or the Latin word "authorizare", meaning "to give authority or power". This word ultimately derives from the Greek word "autos" (self) and "horizein" (to determine or limit).

2. "Hold": The word "hold" has Old English roots and comes from the Old English word "haldan", which means "to grasp, possess, or retain". It has Germanic origins and is related to the Dutch word "houden" and the German word "halten".