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When you swipe your credit card to make a purchase, the merchant’s acquiring bank (which handles the payments for the merchant) ensures with your card issuer that you have a valid account with sufficient funds to make the purchase. The funds are deducted from your available credit line as a pending transaction but not yet paid to the merchant.
It is also customary in the hotel industry to place a hold on your credit card when you check in for your stay. That way, the hotel will be covered in case you cause any damage to the room, and also for incidental expenses such as snacks or drinks that you availed of. Car rentals could also place a hold on your card to cover incidental expenses, which would show up as a pending charge.
In the restaurant industry, your final tab will likely include a customary tip and so your initial payment will be a pending payment until the bill is finalized. At gas stations, too, proprietors will likely place a small hold on your card to ensure you have funds.
You may have seen a charge on your credit card account that says “pending” and wondered how long it will stick on your account. And what if you have an issue and want to cancel a charge while it is still pending? Let’s take a look at when a pending charge should clear and what to do if you run into an issue.
When will a pending charge be cleared?
Usually, a pending charge will show on your account until the transaction is processed and the funds are transferred to the merchant. This could typically take up to three days but may stretch longer depending on the merchant and the type of transaction.
In the hotel industry, for instance, a hold for incidentals that appears as a pending charge will be cleared soon after you pay the hotel bill for the charges you actually incurred when you check out. If you use a different payment type such as cash or debit card though (or even a different credit card to pay your bill than the one that has the initial hold on it), it could take a while for the hold to clear with your card issuer.
In the meantime, the pending charges will reduce the amount of credit you have available on your card, so make sure to take that into account when you use your card.
Issue with a pending transaction
What if you have an issue with a pending transaction? In some cases, a merchant may duplicate a charge. For instance, an online merchant could verify your card when you make the purchase and then authorize your card when you are actually due to make the payment (typically after the merchant ships your order). While this sort of hold could appear twice in your pending transactions, you will only be billed once.
Card issuers are not inclined to resolve issues with pending transactions, considering that the amount is not yet finalized and the actual payment due may differ. That’s why you should contact the merchant to sort out any issues you have with pending transactions. If you want to cancel a pending transaction, the merchant would have to contact your card issuer and ask it to cancel the transaction.
And what if the merchant is not willing to sort out an issue with a pending transaction? Perhaps you can’t even reach a representative to sort out your issue. Unfortunately, you can’t dispute a pending transaction with your card issuer. You will have to wait until a transaction actually posts to resolve the matter. You could then avail of the protections that the Fair Credit Billing Act offers to file a dispute about the charge with your card issuer.
The bottom line
Credit card charges typically show up as pending transactions on your account until the transaction is processed or a hold is removed. This could stretch out several days. If you have an issue while a transaction is pending, you will have to resolve it with the merchant. You can’t dispute a pending charge with a card issuer and will have to wait for it to actually post.
FAQs
The bottom line. Credit card charges typically show up as pending transactions on your account until the transaction is processed or a hold is removed. This could stretch out several days. If you have an issue while a transaction is pending, you will have to resolve it with the merchant.
What happens if a charge is pending for too long? ›
If a transaction remains pending longer than normal, it may be from a technical issue or a delay from the merchant's end. Likewise, a quick phone call to the company may resolve it.
What is the maximum time for a pending transaction? ›
How Long Do Pending Transactions Take to Post? Although pending transactions typically post within two to three business days, they may post immediately in some cases or take up to 30 days in others. It depends on the type of transaction; when it takes place; and the merchant, bank or credit card issuer's policies.
How long does a merchant have to finalize a transaction? ›
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.
Why is my credit card charge stuck on pending? ›
This happens when the credit card issuer has confirmed that you have the available balance to pay for the purchase but has not fully processed it yet. There are multiple transactions that might appear as pending, such as after using your card to purchase gas at a pump or adding a tip at a restaurant.
What's the longest a transaction can be pending? ›
Usually, a pending charge will show on your account until the transaction is processed and the funds are transferred to the merchant. This could typically take up to three days but may stretch longer depending on the merchant and the type of transaction.
Can a transaction stay pending forever? ›
Pending transactions are temporary and a normal part of making purchases with a credit card. These charges will eventually resolve on your statement once they have been fully processed by the merchant and your credit card issuer.
How long can a transaction sit in pending for? ›
How long will a transaction remain in pending? Generally it takes about 3 to 5 business days to process a transaction, although it can take up to 10 business days or longer.
What happens when a pending transaction doesn't go through? ›
The pending transaction will no longer show in your account and your available balance will go back. For current accounts, it's a good idea to keep enough money in your account to cover the payment. That's because some can take up to 180 days to go through. So, the money could still be taken at a later date.
What if my payment is pending for more than 48 hours? ›
The receiver bank should not take more than 48 hours to deposit the money. What if the deposit does not happen in 48 hours? We keep checking the status with the receiver bank for all pending payments. In case the payment does not get completed in 48 hours, we will escalate this with senior banking management.
Generally speaking, credit card issuers don't have a time limit for charging a customer's credit card. The issuing banks, however, will often impose a limit on merchants for charging. These limits can range anywhere from three to 30 days.
Can a company charge you a year later? ›
Technically, there's a time limit on how late you can write an invoice for a customer. But the grace period for collecting outstanding debt is usually very long. In some jurisdictions, you may be able to bill clients even after several years.
Can I spend money that is pending? ›
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.
How long can a charge stay pending on a credit card? ›
A charge can be pending on your account for up to five days.
Why do credit card transactions stay pending? ›
A pending transaction is a transaction that has been authorized but not yet posted to your account. This means the money you've spent is no longer available to you, but is not yet reflected in your current balance. Most transactions can take up to 5 days to post. I don't recognize one of my “pending transactions”.
Is a pending transaction already paid? ›
2. What's a pending transaction? Pending transactions are transactions that haven't been fully processed yet. For example, if you make a purchase with a debit card or credit card, it will almost always show as pending immediately when you view your account online or in a mobile banking app.
How do I fight a pending charge? ›
To cancel a pending transaction, call the merchant or retailer on your statement. If you suspect fraud, call your issuer or bank immediately. To avoid transaction errors and fraud, regularly review your statement and shop only with secure websites, among taking other precautions.
Can you stop a pending charge from going through? ›
How do I stop a pending debit transaction? You can stop a pending debit card transaction by contacting the merchant and canceling the purchase. Or you can try contacting your bank if you don't recognize the transaction, you suspect fraud is involved, or the merchant is unresponsive.
