Each month, the retailer will charge your chosen credit card with your monthly instalment payment. Your credit card statement shows the amount that was charged along with the retailer name. These transactions will show as ‘charged’ or ‘posted’ on your account.
In addition to your monthly installment payments, the full outstanding amount is authorized (held) on your card to guarantee future payments. Authorizations are usually renewed every 17-21 days until your plan is paid off. Authorizations get smaller with each installment paid. The previous authorization is released once a new one is obtained. Authorizations show as ‘pending’ or ‘reserved’ on your account. If your plan is kept on track, these authorizations are not charged.