Hold Then Take

A hotel places a $300 hold on a guest's card at check-in and charges $212 at checkout three days later. Which description of authorization and capture is correct?

A

Capture happens first as a zero amount check to confirm the card is valid, and authorization then locks in the final amount at settlement time

B

Authorization reserves funds and reduces available credit without moving money; capture settles the funds later and the authorization expires if never captured

C

Authorization moves the money out of the cardholder's account immediately, and capture is the later accounting record the merchant posts into its own ledger for the same amount

D

Authorization is the 3D Secure cardholder challenge, and capture is the issuer's fraud decision once the cardholder has completed that challenge