The full amount of your purchase is authorized (held) on your credit card to guarantee future payments to your merchant or retailer so you need to have at least that in available credit on your card. This allows us to offer our service to the merchant or retailer without application forms, credit checks, interest or fees for consumers (even if you pay late). As long as your payment plan is kept up to date, these authorizations are never charged.
The authorization amount reduces with each monthly payment you make until the balance is cleared and we are renewed periodically. The previous authorization is removed as soon as the new one is obtained.