Written by Modulr | Jul 24, 2025 11:00:00 PM
An authorisation hold is a temporary hold placed on a payer’s funds before final settlement. This ensures the necessary funds are available and helps mitigate payment risks. Businesses, especially in travel and hospitality, use authorisation holds to secure bookings and incidental charges, such as for trips that have been offered with free cancellation, or where the date of the trip and payment may change.