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Understanding pending transactions and available funds
You tap your card, the money leaves your available balance — but the payment is still “pending”. Here’s exactly what’s happening behind the scenes, and why it matters for managing your finances.
What is a pending transaction?
A pending transaction is a card payment that has been authorised by the merchant but has not yet been fully processed or settled. When you tap, insert, or use your card online, the merchant requests approval from your bank to confirm that sufficient funds are available.
Once approved, the transaction amount is temporarily placed “on hold” and appears as pending in your account. Crucially, this reduces your available balance immediately — even though the payment may not yet appear as fully processed.
Why does the money come out straight away?
The pending hold is designed to ensure the funds are there when the merchant comes to finalise the transaction. Although merchants may take several hours or even days to complete the payment, the funds are reserved immediately to prevent the same money from being spent twice.
| Current balance $1,200 | Pending Hold -$85 | Available Balance $1,115 |
The available balance is the most accurate indicator of how much you can actually spend or withdraw. Your current balance may still show the full amount, but only your available balance reflects the true picture. When in doubt, always check your available balance.
Why are some pending amounts higher than the final charge?
Some merchants place a temporary pre-authorisation hold for an estimated amount before the final purchase is confirmed. This is particularly common in situations where the total isn’t known upfront.
Common examples include:
- Hotels
- Car hire
- Fuel stations
- Restaurants
- Subscriptions
A hotel, for instance, might place a larger hold to cover potential incidentals or minibar charges. A fuel station may hold a set amount before the pump knows exactly how much fuel you’ve taken. Once the merchant finalises the transaction, the pending amount is adjusted or released accordingly.
How long do pending transactions take?
Timing depends on when the merchant processes the payment. Most settle within a few days, but here’s what to expect:
| 1–3 Business Days Most everyday card payments — retail, grocery, online shopping — clear within this window. |
| Up to 5–7 Business Days Some transactions, particularly those involving pre-authorisations, may take a little longer. |
| Beyond 7 Days Certain merchant types may take longer still. If a pending transaction lingers, contact us and we can investigate. |
The bank cannot generally remove a valid pending transaction. The funds remain reserved until the merchant either completes the payment or allows the authorisation to expire.
Why can’t the bank just release the funds?
Once a merchant receives authorisation, the funds are legally reserved for them until they either complete the transaction or allow the authorisation to lapse. This is a standard part of the card payment network and it protects both merchants and customers from payment disputes and duplicate charges.
A common misconception
A pending transaction does not mean money has been taken twice or that funds are missing. It simply means the payment has been authorised and the funds are temporarily held while the merchant completes processing. Always refer to your available balance to understand what you can actually spend.
A note on credit cards
If you have pending transactions when your credit card statement is generated, your closing balance won’t include them because they haven’t been fully processed yet. Keep this in mind when reviewing your statement; any pending charges will appear on the following period once they settle.
If you have a transaction you believe should no longer be pending, don’t hesitate to reach out. We’re here to help.