What Are Pending Charges on a Credit Card?

What is a pending transaction ?

A pending transaction is any payment that has not been fully processed even though the merchant has accepted payment. Essentially, pending charges are familiar with cashless transactions like credit or debit card payments. When you make a payment with either your credit or debit card, the merchant charges your account. However, the issued charge may take a while to enable the complete transfer of funds to the recipient. The reason is that the payment has to go through specific third-party processes-payment networks (merchant’s bank and your bank), within which your transaction becomes pending. But the pending charges clear up the moment your card issuer successfully transfers the funds to the merchant for you.  

How long does a pending transaction take to post?

The amount of time it takes for a transaction to post depends on when the merchant processes its account. Transactions usually post within three days but can take five days or longer. 

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How do I dispute a pending charge on cash App?

How do I File a Dispute?

  1. Tap the Activity tab on your Cash App home screen.
  2. Select the transaction in question and tap the … in the top right corner of the screen.
  3. Select Need Help & Cash App Support.
  4. Tap Dispute this Transaction.

How Long Do Pending Transactions Take?

When you have a pending transaction because the merchant or retailer hasn’t completed their transactions yet, it could take up to five days to clear. 

If you simply made a payment or purchase outside of standard working hours, the pending transaction will generally only last till the next day. If your purchase or payment requires pre-authorization, the pending transaction period will typically only last 24 hours. 

There are certain things you should keep in mind about pending transactions. While pending transactions usually reflect a purchase, making a credit card payment outside of standard working hours on the day your bill is due will result in a pending transaction that won’t clear until the following day. 

This could result in a late payment penalty if your payment is held up due to a pending transaction, so it’s best to pay your bill as early as possible.

Can I dispute a debit card charge that I willingly paid for?

Disputing a credit card charge. Consumers can dispute fraudulent charges on their bill by calling their issuer. … You also have the right to dispute a credit card charge for a purchase you willingly made. This can be done for a number of reasons, including services not rendered or dissatisfaction with services rendered.

How to cancel on a credit or debit card pending transaction

Suppose you have made a purchase or payment with your credit or debit card and want to cancel. Then you need to contact the merchant and your card issuer with reasons why you wish to cancel. The reason is that you can only withdraw a pending transaction after it has been posted. As a result, only the merchant can authorize a refund from their bank.

However, it would help if you were careful with asking for refunds. The severe charges the merchant insures can cause him to block your card and prevent future purchases in situations where you do not have a solid claim as to why you need a refund.

$1 Charges on Your Credit Card

Have you noticed a random charge on your statement? It usually shows up mixed in your pending transactions. These charges could result from a merchant verifying funds for purchased goods, or it could be credit card fraud.

Usually, these $1 charges are nothing to worry about. They come from gas stations, hotels, and rental car companies. They are used as temporary preauthorization from your credit card company. The $1 charge keeps merchants from having to place a larger hold against your account.

The charge will disappear when the final amount of your transaction is no longer pending. The dollar is never taken from your account. However, if these random $1 charges don’t disappear or start popping up on your final credit card statement, contact your card issuer immediately and find out what’s going on.

How To Dispute a Posted Credit Card or Debit Transaction

If an erroneous pending charge you’ve noticed eventually posts as a transaction, don’t worry. It’s easier to dispute a posted transaction than a pending one. As a part of the Fair Credit Billing Act (FCBA), banks are required to acknowledge a disputed transaction no more than 30 days after they receive your complaint. They must then resolve it within two billing cycles, which may not exceed 90 days from the date of your complaint.

Fortunately, many banks will allow you to dispute a charge online, which can be simpler than sending a complaint letter. 

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.

Bottom line

If you have a pending charge on your credit card that you suspect to be fraudulent, first verify that it is indeed unauthorized activity. After confirming that, see if the merchant can reverse the charge for you. Even if the merchant gives you a credit, you should immediately follow up with your card issuer to notify it about the fraud and exercise your rights.

Contact me at pthangavelu@redventures.com with your credit card-related questions.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

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