Transaction was rejected but money taken from my account?

When using card and wearable transactions, the process involves two main steps: authorization and settlement. During authorization, the issuer temporarily holds the transaction amount. In the settlement phase, the funds are transferred to the merchant's account. If something goes wrong during processing, the merchant might not send a settlement, might send an authorization cancellation, or might not notify us at all.

MuchBetter handles the following types of authorization:

1. Final Authorization: When a transaction is authorized, the card issuer confirms that the card is valid and that there are sufficient funds available. Typically, the funds are captured immediately after a successful authorization, resulting in a successful charge. However, there are cases where the merchant settles the payment later (within 7 days after the card was authorized). If the merchant doesn't confirm the payment within 7 days, the authorization will expire, and the funds will be credited back to your wallet.
2. Pre-Authorization (Authorization Hold): Pre-authorization is used to authorize a card, and the authorized amount is temporarily held. This is common with merchants who are unsure of the final amount to be charged, such as hotels, hospitality services, and car rentals. For example, when renting a hotel room, the merchant may authorize your payment for the standard room price. During your stay, you might use additional services (room service, hotel restaurant, etc.). At check-out, the hotel adds all charges to the initial price and settles the final amount. Once completed, the hold is removed from your card, and the actual final amount is charged. The pre-authorization period varies depending on the card issuer. At MuchBetter, the authorization hold can last up to 30 days. If the merchant does not settle the payment within 30 days, the hold will be removed, and the amount will be available again in your wallet.

Depending on the type of authorization, your funds may not be available for either 7 days or 30 days after the authorization. This occurs because the merchant did not confirm the charge within the specified period. In such cases, you can contact the merchant to confirm the payment status of your purchase or reach out to our support team at support@muchbetter.com for further assistance.