The "Card setup" is created when customer saves card details (actually, card's token from gateway) to his/her account in profile using the X-Payments.
Authorized amount ($1) will be returned to customer automatically after some period of time (depends on bank).
Please read the article below for more details:
https://www.x-payments.com/help/X-Payments:Tokenization_and_Re-Use_of_Saved_Credit_Cards_(X-Payments_2.x_and_later)