A hold can make part of your balance unavailable before you have paid anything. This article explains what it is, where it appears and what a card without overdraft needs in order to accept it.
Published September 30, 2026 · 2 min read
A hold, also called a pre-authorisation, sets aside part of the balance before a final charge is made. The merchant is asking the card to confirm that the money is there and to keep it reserved. While the hold lasts, that part of the balance is set aside and is not free for other purchases. It is a reservation, not the payment itself.
Holds are most common at hotels and car rentals. In both cases the merchant provides a service first and settles the final amount afterwards, so it reserves money up front. You may see it at check-in or when you pick up a car. If you are not sure whether a merchant will place a hold, ask at the desk before you hand over the card.
Later the held amount is either released or turned into a charge. Which of the two happens depends on the merchant. If the hold becomes a charge, the money is spent. If it is released, the amount goes back to being available balance. The table below shows the stages.
| Stage | What happens to the balance | What to keep in mind |
|---|---|---|
| Before the hold | The full balance is available | Check that it covers the amount the merchant will reserve |
| Hold placed | Part of the balance is set aside | That part is not available for other purchases |
| Hold released | The amount returns to available balance | Nothing is spent |
| Hold turned into a charge | The amount is spent | Which outcome applies depends on the merchant |
A card that spends only its balance has no credit and no overdraft. A hold therefore needs enough available balance to cover it. If the hold is larger than what you have available, it will not go through, even when the final bill would have been smaller. The Nexus Pay card works this way: it spends only the available balance, so the amount a merchant wants to reserve has to be on the card at that moment.
Before check-in or pick-up, make sure the card holds more than you expect to spend, so the reserved amount fits. In Nexus Pay you move money from the wallet balance to the card for 0.1%. For example, 1000 USDT moved to the card becomes $999.00. Some points to keep in mind:
Ask the merchant how large the hold will be, then move enough to cover it.
Ask how much will be set aside and whether it will be released or become a charge. Check that your available balance covers the full held amount, not just the expected bill. Remember that the held part is not available for other purchases while the hold lasts. If a hold is declined, the cause is often a balance that is too low for the reserved amount.
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