How long do pending transactions take to clear?

Pending transactions are charges that have been initiated but not yet fully processed or settled. They can take anywhere from a few hours to five business days to clear, depending on the charge. Restaurants, hotels, and car rental companies often initially list charges as pending until the payment is fully processed.

In this article, we’ll explain what pending transactions are and how they work. We’ll also give you an idea of how long the various types of pending charges take to resolve and what to do if you have an issue with one.

What does “pending transaction” mean?

A pending transaction is a credit card charge that hasn’t been fully processed. These transactions can occur when the money needed for the transaction is still being transferred between accounts. They will not yet be reflected on your checking account balance or available credit.

Several transactions may show up as pending, such as when you use your card to leave a tip at a restaurant or buy gas at the pump. Online shopping can also result in pending transactions until the merchant processes your payment and ships your order.

How long does a transaction stay pending?

If you’ve ever noticed a transaction hitting your credit card a few days later, know that this is normal. The time it takes pending transactions to clear can range from a few hours to several days or more, depending on factors including the merchant's processing time, weekends, holidays, and your credit card provider’s policies.

Other types of pending transactions

Aside from credit card transactions pending, you may come across pending charges when using online banking. Here are some timelines to expect for banking charges to clear based on the type of transaction:

• Direct deposits usually clear by the next business day.
• Check deposits at the bank, ATM, or via banking app usually take up to 2 business days.
• Wire transfers usually take 1 business day, while international wire transfers can take up to 2 weeks.
• ACH payments usually take 1 to 5 business days.

Does pending transaction mean the money has already been taken out?

Pending transactions are not yet deducted from your bank account, despite showing up in your account activity and available current balance.

The purchase amount will be temporarily deducted from your available funds, but the actual deduction will only occur when the transaction is processed. It's important to keep track of your pending transactions—if you don’t have enough money in your account to cover them, you could be hit with overdraft fees or other unexpected charges.

Can a pending transaction be declined?

Yes, pending transactions can be declined even after they initially appear on your account as pending. This may occur for a variety of reasons:

• There are insufficient funds to cover the charge
• Your bank has flagged the transaction as fraudulent
• There’s been a technical or processing error related to the transaction,
• The charge exceeds your credit limit
• The authorization hold expired
• There’s been a merchant finalization delay

What does it mean when a pending transaction says declined?‍

If a pending transaction is declined, the funds that were pending will typically be released back into your account, adjusting your available balance. Whether you rely on paper statements or rely on mobile banking, it’s important to regularly monitor your transaction history to stay informed about the status of any pending transactions and to address any issues promptly with your financial institution.

Why is my charge pending for so long?

Insufficient funds, fraudulent activity, processing errors, merchant delays, and delays due to holidays/weekend processing might result in an extended period of a pending charge.

What causes pending transactions?

Some of the most common reasons for pending credit card transactions include bank holds, debit card holds, credit card holds, merchant holds, and a variety of other reasons.

• Bank holds: Banks may place holds on accounts to monitor for unusual activity or protect against fraud, such as in cases of payment disputes or unusual spending patterns.
• Debit card holds: In instances where you can't use your PIN for a debit card transaction, your debit card issuer will label the transaction as pending for up to 4 business days.
• Credit card holds: Credit card payments take less time to clear than debit card payments. Usually, your credit card issuer will verify that you have sufficient funds, and then clear the transaction within 48 hours.
• Merchant holds: Merchants like hotels and gas stations use authorization holds to verify the card and reserve funds for potential additional charges, causing transactions to show as pending.
• Canceled transactions: If a transaction is canceled after being authorized, it may still appear as pending until fully processed.
• Subscription renewals: When a subscription is due for renewal, a merchant may request authorization from the credit card issuer to ensure the card is still valid and has sufficient funds, resulting in a pending transaction.
• Fraud and anti-fraud authorizations: Unknown pending transactions can indicate potential fraud. Conversely, companies may apply small pending charges as a security measure to confirm card ownership and prevent fraudulent activity.

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How can I stop a pending transaction?

To stop a pending transaction, first contact the merchant directly and request they void the charge. If this fails, or you suspect fraud, contact your bank or credit card issuer. Explain the situation and inquire about their dispute resolution process.

Act promptly, as canceling pending transactions is generally easier than disputing posted charges.

How to cancel a pending transaction

If you want to cancel a pending transaction, you'll need to reach out to the merchant. They can then contact your credit card issuer to cancel the payment.

Factors that affect cancellability

Several factors can impact your ability to cancel a transaction:

• Purchase category: Some merchants, like restaurants and gas stations, will typically place a hold on your card that results in a pending transaction. Travel agents may place a hold that lasts up to 30 days. Be aware that with some categories, your best course of action is simply to wait.
• Delayed shipments: If your charge is pending due to a delayed shipment, contact the seller and ask them to cancel the transaction until they complete the shipment.
• Holidays: During bank holidays, your card purchases may lead to pending transactions. Usually, the pending payment will be finalized during the first business day following the holiday.
• Banking hours: Banking hours are usually 9 am to 5 pm, Monday through Friday. Any credit card charges outside these hours will likely be held as pending payments until at least the next business day. If the charges don't clear by then, consider contacting the merchant to see if they can lift the pending payment.

Common scenarios for canceling a transaction

Here’s how to cancel a pending transaction, broken down by merchant and payment type.

How to cancel a pending transaction on PayPal

To cancel a pending transaction on PayPal, log in to your account and go to the "Activity" section. Find the pending payment, click on it, and then click "Cancel" and "Cancel Payment."

How to cancel a pending transaction on Cash App

Go to the "Activity" tab in your Cash App, and tap on the pending payment you want to cancel. If the option is available, you should see a "Cancel" button. Tap on it to cancel the payment.

How to cancel a pending transaction on debit card

You'll need to contact the merchant directly to cancel a pending debit card transaction. If this fails, contact your bank or credit card issuer to learn what options you can take to void the transaction.

How to cancel a pending transaction on credit card

To cancel a pending credit card transaction, first contact the merchant directly. Clearly explain your reasons for canceling and request that they void the charge. If this approach is unsuccessful—or you suspect fraudulent activity—contact your credit card issuer (the phone number is typically on the back of the card). Explain the situation in detail and learn the steps to their dispute resolution process.

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