If you've ever given your card information to a merchant, whether it's recently or in the past, they may initiate a $0 charge on your card. This practice is common and is known as "zero-value authorization".
During zero-value authorizations, no funds are deducted from your account. Instead, the primary purpose is to conduct a preliminary check, confirming that your card is active and that your account possesses sufficient funds. This precautionary measure is particularly valuable in industries such as hospitality and car rentals, where services are reserved before the final payment is made. It is also common for merchants to store your card information on file for you to use on future purchases, so they periodically submit zero-value authorizations to ensure your stored card information is still valid. This practice helps mitigate the risk of fraudulent transactions and offers reassurance to merchants, providing an extra layer of confidence that the payment method being used is legitimate and reliable.
If you see a $0 transaction pending on your debit card and you don't immediately recognize the merchant, search the merchant's name online to see if you may have given them (or one of their subsidiaries) your card information in the past. If you're not sure, or if you did not give your card information to them at any time, contact us for assistance.