Release an Authorization Hold in Lighthouse Transaction Manager

Description: The options for releasing authorization holds depend on the card issuer policies, the transaction status (settled vs. unsettled), and the method of processing supported by the property. Learn what you can do to release an authorization hold on a cardholder's credit card below. 

Note: Authorization holds occur at the bank level. Shift4 can't force a cardholder's bank to release an authorization hold. Shift4 can only assist in requesting the release of the authorization. It is ultimately up to the cardholder's bank if they will honor this request and release it back to the cardholder's account or not.

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Options for Properties that Support EMV Chip Card Processing

Voiding: EMV-capable properties are on a processor platform that allows the use of Post-Void Authorization Reversals. This type of reversal is designed to be sent immediately after an erroneous transaction has been processed or after a void is requested on the active transaction. This sends a message to your processor, and then will subsequently send this to your bank to request the hold be released. 

For transactions that have already been closed out or settled and can't be voided, you need to perform one of the following options:

• Wait for the cardholder's bank to release any additional requested funds after it has settled with the cardholder's bank.
  • The timeframe for this is based on the cardholder's user agreement with the bank.
  • It can last up to 30 days, but it's typically not that long
• Attempt to work directly with the cardholder's bank to release the authorization.
  • This requires you to gather and provide details on the transaction so they can validate you are a business requesting this and then process the release. 
  • Not every bank offers this option, so this varies from bank to bank
  • Call the number on the back of the cardholder's card and provide the following: 
    
    • The cardholder card and transaction details
    • Merchant ID number
    • The approval code
    • The amount to be released

Options for Properties that Don't Support EMV Chip Card Processing

Voiding: This prevents the transaction from settling. The authorization will drop off the cardholder's account based on the timeframe agreed to by the cardholder's user agreement. 

Settle a lesser amount, then refund the transaction: This will NOT result in the instant release of funds but generally accelerates the process compared to waiting for the bank to release an unused auth. This is often done for a smaller amount and then refunded so that the impact on the cardholder is minimal, as the refund may take longer to appear on their statement than the charge. To achieve this: 

1. Locate the original invoice and perform an offline edit to lessen the invoice amount to $1.00.
2. Locate the transaction once more and clone it, converting the invoice to a refund ($1.00).
3. Settle both transactions in a closed batch so the cardholder's bank sees this edit.

For more information on transaction editing, visit the Adjusting Transactions article. 

For transactions that have already been closed out or settled and can't be voided or edited, perform one of the following options:

• Wait for the cardholder's bank to release any additional requested funds after it has settled with the cardholder's bank.
  • The timeframe for this is based on the cardholder's user agreement with the bank.
  • It can last up to 30 days, but it's typically not that long
• Attempt to work directly with the cardholder's bank to release the authorization.
  • This requires you to gather and provide details on the transaction so they can validate you are a business requesting this and then process the release.
  • Not every bank offers this option, so this varies from bank to bank
  • Call the 1-800 number on the back of the cardholder's card and provide the following: 
    
    • The cardholder card and transaction details
    • Merchant ID Number
    • The approval code
    • The amount to be released