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?

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

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

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

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