What is extended authorization?

What is extended authorization?

• A. An authorization for a purchase more than 7 days away.
• B. An extra charge for currency conversion.
• C. A reverse capture.
• D. A multicapture scenario.

Answer: (A)

Extended authorization means keeping a card authorization valid for a longer period than the usual hold. When you authorize a payment, the issuer reserves funds for a set window (often around seven days). If the actual charge will happen later, extending the authorization lets you keep that reserve active beyond the standard window so you can capture the funds when you’re ready. So the best description is an authorization for a purchase more than seven days away. The other options describe currency-related charges, a reverse capture, or multiple captures, none of which describe extending the hold period.

Extended authorization means keeping a card authorization valid for a longer period than the usual hold. When you authorize a payment, the issuer reserves funds for a set window (often around seven days). If the actual charge will happen later, extending the authorization lets you keep that reserve active beyond the standard window so you can capture the funds when you’re ready. So the best description is an authorization for a purchase more than seven days away. The other options describe currency-related charges, a reverse capture, or multiple captures, none of which describe extending the hold period.