Wondering who Cratejoy is and why there's a small charge on the credit card from them? Try not to worry - we'll explain

Did you just recently sign up for a subscription service - or through a company that provides a product on a monthly basis? If so, that's almost certainly the issue - Cratejoy is a subscription platform management company and businesses that provide products to consumers by subscription often use our service to manage the subscriptions - in conjunction with a payment processor.

Once up and going - the credit card charges for the subscriptions should have a line item which indicates the actual company selling the goods - but depending on the payment processor or credit card, when an online signup is made a $1.00 (or small and in a similar amount) is made as a "pending" charge to verify the account.

The "pending" charge won't post - and will disappear without your card ever being charged a dollar.

The $1.00 (or less, depending on the bank) “charge” is simply an authorization hold. It’s simply a practice within the banking industry to determine and test the validity/funding of a card by adding a nominal "charge" on a payment card account. In Cratejoy’s case, Stripe (one of our supported payment processors) applies and removes removes the hold immediately after the card is approved, but the banks themselves may possibly display it for a few business days. Usually, however, it happens so quickly that customers will never see the transaction.

Not every transaction will incorporate this method of authorization and, just to stress- these aren't actual charges. Instead, they’re tests to confirm that a customer’s card is functional and has the appropriate funding, and will typically appear as "pending."

When billing occurs and it's time to renew or pay, the credit card transaction statement for you should have the line item for their subscription post with your, store's name on the statement.

Moving forward, if you have questions about charges from the subscription business that you're buying from - your best avenue is to reach out to the company you bought the subscription from.