When you make a purchase, a transaction is first authorized for the charge amount. This authorization step confirms to the merchant that you have the funds available to make the purchase. Authorized transactions will appear as “pending” in your Dashboard.
Once a charge is authorized, merchants have up to seven days to capture the funds in order to complete the transaction. If an authorization is captured, the transaction completes, and the “pending” status will be removed and replaced by a “required” status if a receipt upload is needed for the transaction, or nothing if no receipt is required.
If an authorization is not captured, the authorized funds will be released and the transaction will show as “canceled”. This can happen manually through merchant action (i.e. if you request a refund from the merchant immediately after making a purchase and the merchant releases the authorization), or automatically if the transaction is not captured within the seven days time.