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Have you ever checked your credit card account to see your credit card balance or purchase amount, only to find that the transaction still shows as “pending” days or even weeks later? When you use your credit card, it’s normal for the charge to be left hanging as a pending transaction, especially for big-ticket items, restaurant bills, hotel stays, etc., but for how long?
If there’s a problem and a charge is still pending, what happens if you want to cancel the charge? Let’s find out when pending charges will be cleared and what to do if you run into a problem.
What does a transaction pending mean?
When you swipe your credit card to make a purchase, the merchant’s acquiring bank, which processes the merchant’s payment, contacts the card issuer to verify that you have an active account with sufficient funds for the purchase. The funds are deducted from your available credit line as a pending transaction, but not yet paid to the merchant.
It’s common practice in the hotel industry to place a hold on your credit card when you check in to a room, so the hotel can cover any damages you cause to the room or any incidentals you may have, such as snacks or drinks. Rental car companies may also place a hold on your credit card to cover incidentals, which will show up as an outstanding charge.
In the restaurant industry, your first payment will likely be a pending payment until the bill is finalized, since your final bill will likely include the customary tip. Even at gas stations, the owner may place a small hold on your card to ensure that funds are not insufficient.
How long will it take for a pending claim to be settled?
A pending charge will typically appear in your account until the transaction has been processed and the funds have been released to the merchant, which typically takes up to 3 days but may take longer depending on the merchant and type of transaction.
For example, in the hotel industry, miscellaneous charges that show up as pending charges are released immediately after you pay the hotel bill for the actual charges incurred at checkout. However, if you use a different payment method like cash or a debit card (or if you pay the bill with a different credit card than the one that originally placed the hold), it may take some time for the hold to be released by the card issuer. So while using a credit card to book a hotel can have many benefits if you use the right card, keep in mind that you’ll have to deal with pending charges that can be delayed if something goes wrong.
In the meantime, pending charges will reduce the available balance on your card, so keep that in mind when using your card.
What to do if you have a problem with a pending transaction
What if there’s a problem with a pending transaction? Sometimes merchants may double-charge you. For example, online merchants may check your card when you make a purchase and then authorize it when you’re actually going to take payment (usually after the merchant ships your order). Such holds may appear twice in your pending transactions, but you will only be charged once.
Card issuers will not attempt to resolve issues with pending transactions because the amount is not yet finalized and the actual payment amount may vary. Therefore, you must contact the merchant to resolve any issues with pending transactions. If you want to cancel a pending transaction, the merchant must contact your card issuer and ask them to cancel the transaction.
So what if the merchant won’t try to resolve the issue with the pending transaction? You probably won’t even be able to get through to someone to resolve the issue. Unfortunately, you can’t dispute a pending transaction with your card issuer. You have to wait until the transaction is actually posted to resolve the issue. Then you can use the protections provided by the Fair Credit Billing Act to dispute the charge with your card issuer.
Conclusion
Credit card charges typically appear as a pending transaction on your account until the transaction has been processed or the hold has been removed. This process can take several days. If you encounter any issues while the transaction is on hold, you’ll need to resolve it with the merchant. You can’t dispute a pending charge with your card issuer, so you’ll need to wait until the charge has actually appeared.
