If you’ve ever gone into your online banking platform to discover a negative checking account balance, you know the sinking, sweat-inducing sensation that comes with it. It’s even worse when you know you deposited a check the day before, yet you’re still in the negative today. When you make a purchase, the transaction does not take place in real-time; that is; the money is not instantly put in the merchant’s account. The transfer must go through various processes involving several participants: the retailer, the procuring banker, the payment processor, and the card affiliation. You may detect the “pending transaction indicator” on your online account or in a mobile wallet after making purchases with your prepaid debit card.
What exactly is a pending transaction?
Pending transaction meaning are those that have not yet been fully processed. For example, if you use a debit or credit card to make a transaction, it will nearly always appear as pending whether you visit your account online or in a mobile banking app. This is because the merchant that accepted your debit or credit card does an online check before completing your transaction to ensure that the card is legitimate and that you have sufficient funds in your account to cover the purchase. If this is the case, the transaction is allowed, and hold in the amount of the purchase is put on your account. During the one to three business days, it takes for the merchant to deliver their dossier to the bank seeking payment; these transactions are shown as pending. Once the bank pays the money to the merchant, the transaction will no longer display as pending in online or mobile banking, and it will be considered complete or posted.
Debit Cards and Pending Transactions
Using a debit card instead of a credit card for purchases that result in holds might be dangerous. This is because a pending credit card transaction merely reduces your available credit amount. A pending transaction on your debit card, on the other hand, will restrict access to the real funds in your account for the duration of the transaction. This might be inconvenient if you have bills to pay and the withheld amount has not yet been given to you.
Canceling a Pending Credit or Debit Card Transaction
You may wish to terminate a pending transaction as soon as feasible. This is possible if the hold is placed on your debit card and, as a result, your bank account. Unfortunately, it’s not that simple—until the transaction is finished, your card issuer has no authority to cancel or otherwise change it. If you wish to cancel the transaction before then, contact the merchant that charged you. Request that they call your card company and reverse the transaction. The merchant has the option of requesting that the hold be lifted.
Regrettably, cancelling a pending purchase isn’t always easy. If you want to remove a hold or a pending transaction before it posts, you must contact the merchant and request that the permission be removed. However, once your transaction has been completed, you have additional options for reversing the charge. You can challenge any charges you believe are erroneous, and banks are compelled to react in a timely way.