Introduction

An authorization reversal is a process used to cancel a previously approved credit card authorization before it settles, thereby releasing the hold on the cardholder's funds. When an authorization is placed, a temporary hold reduces the cardholder's available credit. This amount appears as a reduction in the cardholder's credit line until either the transaction is cleared by the merchant through settlement or the hold expires.

Authorization-hold expiration times vary by issuing bank. These holds expire automatically; however, the duration is determined by the issuing bank and cannot be extended by the merchant.

If supported by your payment processor, you can initiate an authorization reversal to expedite the release of funds. If authorization reversals are not supported, you may contact the cardholder's issuing bank to request the reversal.

To determine whether your payment processor supports authorization reversals, consult the Credit Card Services Guide for your specific processor.

Before Submitting an Authorization Reversal

Record the following information for reconciliation:

• Original transaction ID
• Follow-on request ID
• UTC timestamp
• Amount
• Currency
• Response code

Use the latest transaction status to determine whether the original follow-on request was accepted, declined, or not processed before taking another action. This check helps prevent duplicate or conflicting requests.

Procedure

Option 1: Request an Authorization Reversal in Business Center

Use this option if your payment processor supports authorization reversals.

Option 2: Request an Authorization Reversal Through the Issuing Bank

Use this option if your payment processor does not support authorization reversals.

Additional Information

• You cannot delete an authorization manually. Holds expire automatically based on the issuing bank's policy.
• Do not submit a capture and an authorization reversal concurrently for the same authorization.
• If an authorization-reversal request times out or returns an unknown response, retrieve the latest transaction status before retrying or submitting a different follow-on action.
• Reuse the original idempotency or client request identifier when the API supports it.
• If you need to void a transaction, refer to the Void a Transaction article.
• Refer to the Credit Card Services Guide for details about your processor's support for authorization reversals.

Common Questions

• Can I manually delete an authorization?
  • No. Authorizations cannot be deleted manually. They either expire automatically based on the issuing bank's policy or can be reversed if your processor supports authorization reversals.
• How is an authorization reversal different from a refund or credit?
  • An authorization reversal requests release of the hold on the cardholder's funds before the transaction settles. A refund or credit returns funds after the applicable transaction has been captured, settled, or transmitted for settlement.
• How long will the hold remain on the cardholder's account if I do not reverse it?
  • The hold duration is determined by the issuing bank and varies by institution. The merchant cannot extend the hold duration.
• What should I do if my payment processor does not support authorization reversals?
  • Contact the cardholder's issuing bank using the phone number printed on the back of the credit card. Provide the authorization code or codes and request that the bank reverse the authorization.
• Where can I confirm whether my payment processor supports authorization reversals?
  • Refer to the Credit Card Services Guide for your specific processor.
• What should I do if an authorization-reversal request times out or returns an unknown response?
  • Treat the result as an unknown outcome. Retrieve the latest transaction status using the original transaction identifier before retrying or submitting another follow-on action. Reuse the original idempotency or client request identifier when the API supports it, and record the transaction and response details for reconciliation.
• Can I submit a capture and an authorization reversal at the same time?
  • No. Do not submit a capture and an authorization reversal concurrently for the same authorization. Confirm the latest transaction status before selecting the appropriate follow-on action.
• What if I need to void a transaction instead of reversing an authorization?
  • A void cancels an eligible follow-on transaction before it is submitted for settlement. Refer to the Void a Transaction article for guidance.

Related Resources

• Credit Card Services Guide
• Void a Transaction