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.

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:

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 is my transaction “Effective Dated”?

There are a number of factors that can cause a transaction to be effective dated. These could include:

• The time and date a transaction is made
• Transactions received after banks schedule their systems to run key processes (usually in the evening or early morning)
• Transactions held and released by Fraud programs or issues arising with payment processing
• The type of transaction and how it’s treated by merchants I.e. Visa versus EFTPOS (remember too that if Merchant Choice Routing is in play, you may not know how the transaction gets routed thus contributing to whether it is effective dated or not)
• When other banks settle or run their processes to settle payments. E.g. NAB or ANZ may not settle their transactions at the same time of day
• Transaction being held by network providers, such as Visa or Cuscal, which holds the transaction for a period of time before it gets released to our Core Banking System. 

It’s important to acknowledge that banks are not able to control these factors.

Why are some transactions not effective dated?

It depends on the date and time the transaction is made, combined with the type of transaction it is. For example, the earlier in the day the transaction occurs, the more likely it may be to be posted that same day (no effective dating required).

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 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.