Pre-authorization, sometimes called a hold, is a process where merchants will temporarily hold funds for a transaction until the final amount is settled.

Here are a few examples of merchants that may place a hold on your account:

Merchants place a hold to ensure you can pay the required charges, even if the bill amount changes.

In order for your Adro Credit Card to be accepted, you need to have enough funds in your 'Available to spend' to cover the cost of your purchases, as well as any pre-authorizations or holds a merchant may place on your card.

Example:

You're booking a hotel room that costs $150/night, and you're staying for two nights (for a total of $300). The hotel has a pre-authorization requirement of $100/night.

This means, you would need to have at least $500 in your 'Available to spend' balance. ($150 x 2) + ($100 x 2) = $500

No. In a pre-authorization, the merchant will temporarily hold funds for a transaction. If those funds are not needed, the pre-authorization is removed from your account and added back to your 'Available to spend' balance.

You are typically notified by the merchant what your final bill is once the transaction is completed.

This depends on the merchant, and they'll usually let you know what the pre-authorization amount is before asking for your card details. If they don't, be sure to ask!