Common use of Preauthorization Clause in Contracts

Preauthorization. If you use the Card to schedule a ride or delivery, to purchase fuel, or for similar purchases, the transaction may be preauthorized for the purchase amount plus an additional dollar amount to ensure there are sufficient funds available to cover expenses incurred. A preauthorization will place a “hold” on those available funds until the Merchant sends us the final payment amount of your purchase. Once the final payment amount is received, the preauthorized amount or “hold” will be removed. It may take up to ten (10) days for the “hold” to be removed. During the “hold” period, you will not have access to the preauthorized amount. If you leave your Program Sponsor’s plan after the “hold” is placed but before you have completed the purchase, you may be responsible to the Merchant for the full amount of the transaction.