How do pending transactions work? - NerdWallet Australia (2024)

FAQs

How do pending transactions work? - NerdWallet Australia? ›

When a payment is pending, it means the merchant received the payment but the charge is still being processed. It usually takes three to five days to process a transaction on a credit card. When a transaction is authorised, it confirms to the merchant that a card is valid and there are available funds.

Pending transactions are transactions that have been initiated but are still being processed. Technically the money is moving between your bank and the vendor's bank and, as such, is removed from your immediate balance.

A pending transaction is an approved debit or credit to your bank account or credit card that hasn't been processed yet. Essentially, the money is still in transition from one bank to another. Pending transactions may include: Bank account deposits made by check, cash or direct deposit.

Pending transactions don't always affect your balance right away. Sometimes they change in amount. Sometimes they even disappear altogether. When you make a purchase, sometimes it'll show up as pending for a few minutes, hours, or even days.

Pending transactions generally take between one and five business days to clear. That time can vary based on the type of transaction, the payment network, and the bank or credit card issuer.

There's no need to worry. It's simply a recent payment that you've made with a debit card or a credit card. You may have bought something in a shop or online. Either way, the word 'pending' shows that the payment is still being processed by the retailer and is waiting to leave your account.

Pending charges immediately reduce your available balance by the amount due. For example, if you make a hotel booking with your credit card, the front desk may put a hold of $150 on your account to reflect the room rate. Although they are not charging you yet, the amount is still deducted from your available credit.

Until it processes, a pending transaction could put a hold on an account balance or credit limit. That doesn't necessarily mean you can't use your credit card or bank account. But it can affect your available balance—or the funds you're able to access.

Pending transactions occur for several reasons, but ultimately, it means you've authorized a third party to remove funds from your account. Generally, pending transactions should clear in a matter of days. But in rare cases, you may see a transaction take a little longer — usually when holds are involved.

Pending transactions are payments that would normally go into or out of your account within 7 days. When you use a debit card to pay for something, it reduces the available balance in your current account. Similarly, when you use a credit card to pay for something, it increases your available balance.

Can pending transactions be declined? ›

Yes, a pending transaction can be declined. A pending transaction is a temporary hold placed on funds in an account, typically when a card is used to make a purchase or when a check is deposited. The hold ensures that the funds are available for the merchant to process the transaction.

Why can't a pending transaction be canceled? Because a pending transaction is temporary and can change, you are unable to alter it until it is finalized and posted to your account.

Once a transaction appears as pending on your account, you're unable to stop or cancel the transaction until it's complete. The merchant then sends us their transaction file for settlement, and we send the merchant your transaction payment.

While a transaction is pending, the amount is deducted from your available funds. The account balance is the total amount you have in your account that includes any pending transactions or other amounts yet to clear (e.g. cheques).

How does a Pending Transaction affect my Account balance and credit limit? Pending Transactions are deducted from your available credit immediately, but are not included in your Account balance.

Unlike your statement balance, which is fixed at the end of the billing cycle, your current balance is a real-time total of all charges, interest, credits and payments on your account. Your current balance could change each time your card is used. But pending transactions aren't included until they post.

Are pending transactions included in your credit card balance? You'll likely see that the amount of the pending transaction is subtracted from your available credit, but not yet added to your account balance. The exact manner in which pending charges are reflected in your balance may vary depending on your issuer.