Disclaimer: This is a question of "How is this technically possible in the banking/credit system", NOT "Why is this happening to me".
I bought some blinds off costco.com recently. Let's say they cost $200.
Jan 28: I was charged $200 to my CITI card, marked as "pending". This is the PREAUTH.
Feb 08: The order SHIPS.
Feb 09: I was charged $200 to my CITI card. This is the actual charge, and goes through.
Feb 11: The goods were delivered.
It is now Feb 15, and the PREAUTH is still holding credit on my CITI card.
YES this is very annoying because I've already received and paid for the goods, yet the PREAUTH is still bringing my credit down $200.
The next section is CONTEXT, not essential to my stackexchange question:
I have called BOTH Costco and CITI.
Costco says to wait it out and call CITI.
CITI says it can take 30 days and there's nothing I can do. But COSTCO can cancel it.
I call COSTCO back and they call CITI and tell them to remove it.
I am wondering HOW in our credit/banking system is it possible for a PREAUTH to stick on your card 3 weeks after you've already received and paid for your goods - and ADDITIONALLY the Credit and the Merchant can do "nothing" except wait?
What system is in place that forces the Creditor and the Merchant to wait?