What is an authorization hold and what does that mean for my deposit?
You placed a deposit a few days ago and now you’re seeing another transaction process even though you haven’t made another deposit, what’s happening?
This is the result of a temporary hold the bank places on your credit or debit card at the time of your deposit, and will clear itself in 1-3 business days. A little more detail; Completing a payment card transaction involves two steps: 1) authorizing the purchase and 2) settling the transaction. The authorization process doesn’t transfer funds from your account to the merchant. It’s simply the bank’s way of telling the merchant that the funds for a purchase exist. Once the funds are settled to the merchant, the authorization disappears, and the funds are available.
Note: the merchant name for your deposit will display as Skillz.com or Skillz *Esports
Usually your bank will show 2 different amounts in your statement or mobile application. Those would be of your Account Balance and Available Balance. Here’s an example of how your statement may appear if you placed a deposit.
Banks may also split your pending and posted transaction into separate categories for easier tracking. Once the deposit has settled/posted, you’ll see a second entry where the funds have successfully been removed from your account.
A common example of this outside of a Skillz deposit is when someone pays for gas with their credit card.
The transaction often starts with a $1.00 hold on your credit card.
Once you pump your gas, the full amount is sent to your credit card and usually takes 48 hours to settle and deduct from your available credit.