Authorizations
The authorization (also authorization hold) process is an essential step in completing a card transaction. During authorization, the merchant receives the card holder's information and verifies that the card is valid and that the card holder has sufficient funds to cover the amount of the transaction. Most merchants proceed immediately from authorization to the completion of the transaction, but they have the option to place a hold instead.
An authorization effectively "reserves" a certain amount of the card holder's available funds for the merchant upon completion of the card transaction. The amount of the authorization is made unavailable to the card holder, but it isn't transferred to the merchant's account—not yet. When the transaction is settled, the authorization will be removed, and the card holder is charged the actual, final purchase amount.
When using a card in gas stations, the authorization is made before the purchase amount is determined. In this case, a 100$ authorization and hold will be made (or of the current balance if it is lower than 100$) and any difference will be released once the purchase is settled.
The authorized amount will be included in the card holder account hold amount and will be reflected in the account available amount (see Deposit Account)
Authorization Statuses
Authorizations have a Status Property, which represent their current status.
| Status | Description |
|---|---|
| Authorized | The authorization was created and is awaiting settlement. |
| Completed | The authorization was settled through a transaction. |
| Canceled | The authorization was reverted by the merchant or expired. |
| Declined | The authorization was declined, for example: due to insufficient funds. |
Org-initiated release (Unit Dashboard & API)
When your organization is permitted to do so, you may manually release an authorization that is still in Authorized status. The held amount returns to the customer’s available balance without waiting for a merchant reversal, settlement, or network-driven expiry.
When enabled, it is available to your organization for authorizations that belong to your own program. When not enabled, your organization cannot self-serve this action and Unit must handle it as a support workflow.
Surfaces
- Unit Dashboard: Open the authorization and use the release action. Only Admin users have access. See operational guidance under High Risk Support Actions — Releasing an Authorization Hold.
- API:
POST /authorizations/{authorizationId}/release.
Prerequisite
Your Org Bank Agreement must allow your organization to release authorization holds. This capability is disabled by default; contact Unit if you need it enabled for your program.
Automatic Release Timing
In the normal flow, authorization holds are released when the merchant settles the transaction, sends a reversal, or the card network no longer reports the hold as active.
This means there is not a blanket automatic release for every authorization at exactly 30 days. If a merchant never settles, automatic release timing depends on the card network and merchant category:
| Authorization type | Typical automatic release behavior when the merchant never settles |
|---|---|
| Standard card authorizations | Released after the hold stops appearing in the network's daily hold file for 3 consecutive reconciliation runs. |
| Travel-related authorizations | May remain active for up to 31 days. This commonly includes airlines, hotels, car rentals, and travel agencies. |
| Accel network authorizations | May remain active for up to 7 days. |
If the network is still reporting the hold as active, it may remain on the account past 30 days.
Authorization Decline Reasons
Bellow is a list of the most common decline reasons.
| Decline Reason | Description |
|---|---|
| CardVerificationValueFailed | Verification of CVV or CVV2 has failed. |
| IncorrectPIN | PIN verification failed. |
| ExceedsAmountLimit | The amount limit for the card or account has been exceeded. |
| InsufficientFunds | Transaction Amount exceeds the cardholder's available balance or available credit limit. |
| RequestedFunctionNotSupported | A permanent restriction is placed, either account specific or broad level. |
| AllowablePINTriesExceeded | Defined number of PIN entry tries has been exceeded. |
| SuspectedFraud | The transaction does not pass risk monitoring detection systems. |
| ClosedAccount | The account is closed. |
| DoNotHonor | Generic Response Code. |
| CardholderBlocked | New card that has not been activated or has been temporarily blocked |
| CardStolen | The cardholder has reported the card stolen. |
| RestrictedCard | A transaction is attempted from a country where transactions are restricted, including OFAC or embargoed countries. |
| MerchantDenyList | Unit managed Merchant deny list |
| MccDenyList | Unit managed MCC deny list |
| CountryDenyList | Unit managed Country deny list |