When you create a Cloaked Pay virtual card, you may notice a temporary transaction appear on your linked funding source. This article explains what that transaction is, why it happens, and how much it checks for, so you know exactly what to expect.

What is a Pre-Authorization? 

When you create a Cloaked Pay virtual card, we run a quick verification on your linked funding source called a pre-authorization. This is not a charge — it's a lightning check — a behind-the-scenes confirmation between our bank and yours that your funding source is valid, tied to you, and has sufficient funds available for the amount of the Cloaked Pay card you created.

What amount does it check for?

The pre-authorization verifies funds equal to the spending limit you set on your card. For example, if you create a Cloaked Pay card with a $100 spending limit, the check will verify $100 is available to spend.

Will it affect my available balance?

No. Unlike a standard pre-authorization hold, which can freeze funds for 1–30 days depending on your bank, Cloaked's pre-authorization is instantaneous. The verification completes in real time and does not place a lasting hold on your funds. Your available balance is unaffected. Although we remove the pre-auth immediately, we are unable to control Bank or underlying card timeframes for removing the lightning pre-authorization.