What Is a Pending Transaction?

Pending transactions are debits or credits to a bank or credit card account that have been approved but not yet processed. They affect the amount of money that’s available in the account — yet consumers are sometimes confused about how pending transactions work.

This article will explain what is a pending transaction and how it works, as well as answer some commonly asked questions.

What Is a Pending Transaction?

A pending transaction occurs when you initiate a purchase, but the merchant has not yet finished collecting the funds.

This could happen for various reasons, such as the merchant needing time to confirm the transaction details or your bank conducting a security check. A transaction may also be pending due to a temporary hold placed on certain types of transactions until the merchant determines the final charge.

Pending transactions aren’t limited to debits or money going out of the account. Sometimes, incoming credits — such as a check deposit or credit card merchandise return — may also take time to officially reach your account.

Pending transactions act as placeholders in your account, reflecting the anticipated debit or credit. They show up almost immediately after a purchase is made, but they haven't fully "posted" to your account until the merchant processes them on their end.

For this reason, pending transactions can change or even be removed before they post, depending on how the merchant handles the final billing.

Common Examples of Pending Transactions

Pending transactions are common in everyday financial activities. Here are a few examples:

• Card purchases: When you swipe your debit or credit card at a store, the charge often appears as pending until the merchant finalizes it.
• Gas station holds: Gas stations frequently place a pending hold on a higher amount (e.g., $100) when you pay at the pump, even though your final purchase might only be $50.
• Hotel bookings: Hotels typically place a hold on your card for incidentals at check-in, which may stay as a pending transaction until you check out and the final bill is processed.
• Online purchases: E-commerce transactions usually appear as pending until the seller ships the item and processes the payment.
• Check deposits: When you deposit a check into your bank account, your bank may need to verify it and ensure that the funds are available from the issuing bank.
• Credit card returns: When you return an item purchased with a credit card, the refund may initially appear as a pending credit before being officially posted to the account.

How Pending Transactions Affect Your Account Balance

Pending transactions affect your available balance even though the funds haven't officially been debited or credited to your account.

For example, if you have $1,000 in a checking account and make a $200 purchase with a debit card, the available balance might immediately drop to $800 even though the transaction is still pending.

This is important because it prevents you from accidentally spending money already committed to pending transactions — helping avoid overdrafts and returned item or insufficient fund fees for checking accounts.

However, it's crucial to keep in mind that pending transactions may change. If the final charge for a service ends up less — or, in some cases, more — than the pending hold, your balance will be adjusted accordingly once the transaction posts.

For credit card users, pending transactions also affect your available credit. The pending charge reduces your remaining credit limit.

Pending Transactions vs. Posted Transactions: What’s The Difference?

The primary difference between a pending transaction and a posted transaction lies in their status:

• Pending transaction: A temporary hold placed on your account that has not yet been finalized. It reflects the authorization of the charge but not the actual completion.
• Posted transaction: A finalized transaction that has been processed by the merchant and your bank. It officially appears in your account history, and the funds or credit have been permanently adjusted.

Pending transactions can change, such as being canceled or altered in amount, while posted transactions are permanent and reflect the final amount charged.

Because pending transactions are not yet completed, they don't appear in your official transaction history or your monthly bank statement. Only posted transactions show up in your bank statements or credit card bills, which means pending transactions are more like placeholders than final records.

For those keeping close track of their spending, it's important to differentiate between pending and posted transactions, especially if the pending amount is higher than the final bill.

How Long Do Pending Transactions Take?

Typically, pending transactions take one to five business days to process.^[1] This timeframe varies depending on the type of transaction and the merchant's processing times.

For example, debit card transactions at a retail store may post the next day, while hotel and car rental holds may take a few days to clear — particularly if there’s a delay in finalizing the amount due.

Factors That Can Influence Transaction Timelines

Several factors can affect how long a pending transaction remains on your account:

• Merchant type: Some merchants, such as gas stations and hotels, often use temporary holds until the final transaction is completed and posted.
• Bank processing times: Banks often hold pending transactions for security checks, which may prolong the pending period.
• Business hours: Transactions initiated outside of regular business hours or on weekends may take longer to process.

Frequently Asked Questions About Pending Transactions

Does a Pending Transaction Mean It Went Through?

Not necessarily. A pending transaction means that the merchant has authorized the charge but hasn't completed it. In some cases, pending transactions may not go through if the merchant cancels the order, fails to finalize the payment, or adjusts the amount. Until the final transaction posts, it’s possible that the charge could change or even disappear.

Do Pending Transactions Still Take Money Out?

Pending transactions don't officially withdraw money from your account, but they affect your available balance. The funds associated with the pending charge are "reserved," so they aren't available for other transactions. Once the transaction posts, the amount is fully deducted from your account or charged to the credit card.

Can You Cancel a Pending Transaction?

Canceling a pending transaction can be difficult because the payment is already in progress. In many cases, the only way to cancel a pending transaction is by contacting the merchant directly.

If the merchant agrees to cancel the charge, the pending transaction should eventually disappear from your account without posting. However, if the transaction posts before the cancellation is processed, you may need to file a dispute with your bank or credit card company to reverse the charge.

The Bottom Line

Pending transactions can be a bit confusing, but they play an essential role in ensuring that your purchases are properly authorized before the funds are finalized.

Understanding how pending transactions work, how they affect your account balance, and how to handle them may help you avoid surprises and maintain better control over your money.