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This is the concept of "locked capital/money" as a guarantee or collateral. Say you have $5,000 limit to spend on your card. The car rental company took deposit of say $2,000. This $2,000 money isn't going anywhere, but remains in a locked state as a collateral. It will not leave your credit card account. However, till the time you hold the car, this ...


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A credit card pre-authorization is much like any other charge to a credit card, except instead of actually debiting funds from the cardholder there is a temporary "hold" on the funds. This means that the amount isn’t charged to your card, so you won’t pay interest on the amount (and it won't be charged to your linked bank account if you have auto-pay on). ...


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