Rental car company submits holder's debit card for payment authorization in the amount of $89. Authorization is approved and system places hold for five days. Merchant continues to submit daily authorizations for $89, for 36 days. All authorizations are approved, as prior authorizations drop off after five days and accountholder had adequate funds on deposit for the five days' authorizations. After 32 days, merchant presents payments for $3200. Accountholder does not have sufficient funds. Is merchant required to "settle up" on the prior authorizations in some timely manner? Does the bank have the ability to refuse the payment to the merchant?
Thank you!
Chris