Noticed a difference between the amount shown when you first used your card and the final charge on your statement? This is normal and can happen due to adjustments in the final charged amount or currency exchange rates.
1. How Transactions Work: Authorization vs. Completion
Authorization: When you pay, we first ask to confirm that you have the funds. This places an initial "hold" for an estimated amount.
Completion (Settlement): This is when the transaction is finalized, and the actual funds are transferred. This usually happens between 1 and 3 days after the purchase.
The price can change between these two stages.
2. Why the Amount Can Change:
Adjustments to the Initial Amount:
Sometimes, the initial authorized amount is an estimate because the final total isn't known at the exact moment of payment.
Examples:
Tips & Gratuities: Adding a tip at a restaurant after the initial card swipe will increase the final charge.
Online Orders: The final amount for an online purchase might change due to items being out of stock, substitutions being made (familiar with grocery orders), or final shipping costs being calculated after the order is packed.
Pre-authorizations (e.g., Hotels, Car Rentals): These businesses might authorize an amount to cover potential costs. The final charge is then adjusted to your actual usage.
Foreign Currency Transactions & Exchange Rates:
If you buy something in a currency different from your card's currency, the exchange rate can fluctuate between the time of purchase (authorization) and when the payment is fully processed (completion).
The final exchange rate used by the card network or your bank determines the ultimate cost in your currency, which might differ slightly from what you initially anticipated.
In Short, The amount you first see is often an estimate. The final charge reflects any adjustments (like tips or changes to an online order) or shifts in currency exchange rates if you paid in a foreign currency.