What’s a pending transaction and how is it useful?
Last updated 25 August 2017
Some card transactions will appear as pending on your account until the payment is fully processed. Generally it takes about 3 to 5 business days to process a transaction, although it can take up to 10 business days. For pre-authorisations (e.g security deposits for hotels or car rentals), this can be up to 31 days. During this time the pending transaction amount is deducted from your ‘available funds,’ while your ‘account balance’ remains as it is.
- You use your card to buy goods/services from a merchant
- There’s an online check to make sure your card is valid and you have enough money to pay
- We authorise your transaction and the amount is deducted from your available funds. The transaction shows as ‘pending’ on your account
- The merchant sends us their transaction file for settlement, and we send the merchant your transaction payment
- Your transaction is no longer pending and your account balance reduces by the transaction amount
Pending transactions are useful as you get to see in real-time when you have made a payment or withdrawal. This means you don’t have to wait up to 10 business days for payments or up to 31 days for pre-authorisations to be processed to see what you’ve spent and you can avoid any surprises such as accidentally overdrawing your account.
Here's an example: