Does the Bank have to authorise a transaction and what is a pending transaction?

See all Credit cards FAQs

Last updated 01 October 2015

In most cases, we have to approve (authorise) a transaction before it goes ahead. Usually we authorise transactions as long as they are within your credit limit. We reserve the right though not to authorise a transaction in some circumstances, for example, if we suspect a fraudulent transaction or if we are experiencing technical difficulties with our  systems.

In some instances, we may authorise a transaction but the merchant may not process the transaction immediately, or the amount processed to your card may be different to the amount of the authorisation. This is called an outstanding authorisation and will appear in your pending transactions in NetBank. 

For example, a hotel may get authorisation for the cost of one night’s accommodation as a security measure when you check in. Or, the amount of the hotel bill later processed to your card might be different to the amount of the authorisation.

An outstanding authorisation (which is a pending transaction) reduces your available credit, but does not affect the balance owing on the card. The available credit on your card account will be reduced by that amount for up to 5 business days if the transaction:

  • Is not completed
  • Is completed but the actual amount is different from the authorisation.

If an outstanding authorisation is preventing your use of your card, it can be removed more quickly if you ask the merchant to send a formal request by fax, including the following information:

  • On a company letter head
  • Merchant name
  • The account number (your credit card number)
  • The amount that was authorised by the merchant
  • The date the Authorisation was obtained by the merchant
  • The authorisation number
  • Hand signed by a company representative.

Please fax these details to 02 8251 5650.

Unable to find what you're looking for?

Search for more popular topics