Pending transactions: What are they and how do they work?

A pending transaction is a transaction that’s been approved but is still being processed. Because the transaction hasn’t fully posted, you may see it listed in your account along with your balance, recent transactions and upcoming payments. 

Learn more about pending transactions, how long they can take to post and how they affect your current balance and available credit.

What you’ll learn:

• Deposits, payments and purchases are different types of pending transactions.

• Transactions may be listed as pending as a temporary hold or until a merchant finalizes a purchase.

• Depending on the financial institution, some pending transactions could take up to 30 days to post, but most post within three to five days.

• Pending transactions can affect your available balance or available credit.

A pending transaction is an approved debit or credit to your account that hasn’t been processed yet. Essentially, it means the money is still in transition from one bank to another. Once a pending transaction is processed, it might be referred to as posted, cleared or settled. 

In addition to purchases or returns you make with a debit card or credit card, pending transactions can also include deposits to your bank account, electronic funds transfers (EFTs) or monthly payments on a credit card account.

The difference between a pending and a posted transaction is its processing status. Pending transactions are posted once your bank or credit card issuer fully processes them.

After a transaction is posted, it’s considered final and is reflected in your balance and monthly statement. Pending transactions, on the other hand, aren’t yet final and can therefore change.

Here are a few common reasons for transactions to be pending:

• The merchant hasn’t finalized the transaction. The payment may have already gone through on your card issuer’s side, but the merchant hasn’t finalized the purchase with their payment processing company. Sometimes, merchants may wait until the end of the business day to authorize all of their credit card transactions at once—known as batch processing.

• The transaction is a temporary hold. Some merchants place holds on your account for security to ensure you can cover a cost before actually charging you. For example, rental car companies or hotels may apply a temporary hold for potential damages. Restaurants may temporarily charge the amount of the bill before you’ve added in your tip on the receipt. And gas stations may do a temporary pending charge while you’re at the pump.

• A check hasn’t cleared. If you wrote someone a check or deposited a check into your account, it will show as a pending transaction until the check clears.

A pending transaction can put a hold on your account balance and affect your available balance until it clears. This doesn’t necessarily mean you can’t use your credit card or bank account, but it may mean there is less available credit or money. 

Pending transactions might not be reflected in your current balance, so the amount shown may differ from the available balance. To stay on top of your finances, consider keeping personal records, like a checkbook register or a budget spreadsheet.

Transactions usually take three to five business days to post, though some can take as long as 14 days. The timing can depend on factors like payment network, bank, or credit card issuer and type of transaction.

Here are some examples of how long pending transactions can typically take to post:

• Cash deposits are often settled by the next business day.

• Check deposits typically post within two business days.

• EFTs through the Automated Clearing House (ACH) network may settle the same day or within one to two business days.

• Domestic wire transfers are usually processed within the same day, while international wire transfers can take up to five business days.

• Credit card purchases generally post in three days, but in some cases may take up to 30 days.

• Payments to your credit card account might be reflected the same day or could take up to seven business days.

Banks and credit card issuers can’t usually cancel pending transactions. But you may be able to work directly with merchants. There’s no guarantee they will cancel a pending transaction. But they may be able to offer a refund or accept a return once the transaction posts to your account.

If you don’t recognize a transaction and you suspect fraud, contact your bank or card issuer as soon as possible. Depending on the circumstances, they may recommend you file a dispute.

Banks and credit card issuers may decline pending transactions, especially if the amount exceeds your available funds. It’s helpful to keep track of your account activity to avoid overdraft fees and penalties some issuers have. Capital One eliminated overdraft fees and insufficient funds fees for consumers in 2021.

Learn more about pending transactions with these frequently asked questions.

Purchases, deposits and payments are the most common pending transactions. Most will post within five days, though the time depends on the financial institution and the type of transaction. Knowing how pending transactions work and how they affect your balance or credit is helpful in managing your accounts. 

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