Dexter Pay Authorization Hold Policy
Understanding the $25 Authorization Hold
When you use Dexter Pay, you may notice a temporary $25 authorization hold on your payment method.
This policy explains what this hold is, why it exists, and how it aects your account.
What is an Authorization Hold?
An authorization hold is a temporary hold placed on your credit card, debit card, or bank account to verify
that funds are available before processing your transaction. This is not a charge — it's a temporary
reserve that will be released back to you.
Key Details About the $25 Initial Authorization Hold
Initial Authorization Amount: $25.00 USD
When It Occurs: The hold is placed when you initiate a transaction using Dexter Pay
Purpose:
Verifies your payment method is valid and active
Ensures suicient funds are available for your ongoing transactions
Protects against fraud and unauthorized use
Complies with standard payment processing protocols
Duration: If you do not spend the full $25 authorization amount, the unused balance will be
returned by your bank in approximately 3 days
Final Charge: You will only be charged for the actual amount of your purchases or services. Any
unused authorization hold amount will be released separately.
How It Works: Step by Step
1. You initiate a transaction through Dexter Pay
2. A $25 initial authorization hold is placed on your payment method for verification
3. You make purchases or incur charges against this authorization
4. If you spend less than $25: The unused balance is returned by your bank in approximately 3 days,
and you are only charged for what you actually spent
5. If you spend more than $25: The system will re-authorize your account (see Re-Authorization
section below)
6. Final settlement: You are only charged for your actual transaction amounts
Understanding Re-Authorization
If your spending exceeds the initial $25 authorization amount, Dexter Pay will automatically re-authorize
your payment method to ensure you have sufficient funds available to complete your transactions.
When Re-Authorization Occurs:
When your accumulated charges reach the maximum spending limit set by the merchant
How Re-Authorization Works:
The system will place a new authorization hold for the re-authorization amount
This new hold is placed in addition to the previous authorization amount
Both holds remain active to ensure funds are always available
Important: Each re-authorization is subject to applicable transaction fees and convenience fees
Example of Re-Authorization:
Initial authorization: $25.00 held
You spend: $25.00 (reaching the threshold)
Re-authorization triggered: Additional $25.00 held
Total temporarily held: $50.00
You spend an additional: $10.00
Final charge: $35.00 (your actual spending)
Amount returned: $40.00 (unused authorization amounts, released in ~3 days)
Important Information
Will I be charged twice?
No. Authorization holds are not charges. You will only pay for your actual transaction amounts. All
unused hold amounts will be returned to your account.
When will the hold be released?
Unused authorization amounts are typically returned by your bank in approximately 3 days after
your final transaction is complete. Dexter Pay releases holds immediately after transaction
completion, but your bank controls the timing of when you see it reflected in your account.
What if my transaction is less than $25?
You will only be charged your actual transaction amount. The unused portion of the $25 hold will
be returned by your bank in approximately 3 days.
What if my spending exceeds $25?
The system will automatically re-authorize your account to ensure suicient funds are available.
This re-authorization will place an additional hold on your payment method. Important: Reauthorizations
are subject to transaction fees and convenience fees.
How many times can my account be re-authorized?
Your account may be re-authorized multiple times if your spending continues to exceed the
authorization limits. Each re-authorization incurs additional fees.
Can I avoid the hold or re-authorization fees?
The initial authorization hold is a standard requirement for all Dexter Pay transactions. Reauthorization
occurs automatically when spending exceeds the threshold and cannot be avoided
if you continue making purchases beyond the initial authorization amount.
What if I don't have sufficient funds available?
Ensure you have both your anticipated transaction amounts plus additional funds to cover
authorization holds. If insufficient funds are available during initial authorization or reauthorization,
your transaction may be declined.
Why are there fees for re-authorization?
Each re-authorization is processed as a new transaction by your financial institution and Dexter
Pay's payment processor, which incurs standard transaction and convenience fees.
Example Scenarios
Scenario 1: Spending Less Than Initial Authorization
Initial authorization hold: $25.00
Your actual spending: $15.00
Temporary hold on statement: $25.00
Final charge: $15.00
Amount returned: $10.00 (unused authorization, released in ~3 days)
Scenario 2: Spending That Triggers Re-Authorization
Initial authorization hold: $25.00
Your spending reaches: $25.00 (triggers re-authorization)
Re-authorization hold added: $25.00
Total temporarily held: $50.00
You continue spending to: $40.00 total
Final charge: $40.00 + re-authorization fees
Amount returned: $35.00 (unused authorization amounts, released in ~3 days)
Note: Re-authorization fees vary based on your transaction type and payment processor rates.
Managing Your Spending
To help you avoid unexpected re-authorizations and additional fees:
Monitor your spending as you make purchases through Dexter Pay
Be aware of the $25 threshold - once your spending approaches this amount, re-authorization
will occur
Ensure sufficient funds are available in your account to cover both purchases and authorization
holds
Consider completing your transaction before reaching the re-authorization threshold if you want
to avoid additional fees
Check with the merchant about current authorization amounts and re-authorization thresholds
Need Help?
If you have questions about authorization holds, re-authorization fees, or notice a hold hasn't been
released after 7 business days, please contact:
Dexter Pay Customer Support
Phone: 641-209-8176
Or contact your financial institution directly to inquire about the hold status and release timeline.
Note: Authorization hold timeframes are controlled by your bank or card issuer, not by Dexter Pay. We
release all holds immediately upon transaction completion. Unused authorization amounts are typically
returned by banks in approximately 3 days, though some financial institutions may take longer.