If you are used to running cashless transactions, then a pending transaction is probably not alien to you. Even though such a charge is not permanent and signifies a waiting transaction, it can be pretty uncomfortable. The reason is that pending charges only affect your available balance until the funds go through. As a result, your chances of having them increase with more credit/debit card purchases. In addition, your PayPal account can have a pending transaction which depends on the preferred method of receiving funds for the person being paid.
In this blog post, you will get to understand better what a pending transaction is. Additionally, you will also learn how to cancel a credit card, a debit card, or a PayPal. And whether or not it is necessary to withdraw them, keep reading to learn more.
What is a pending transaction?
A pending transaction is any payment that has not been fully processed even though the merchant has accepted payment. Essentially, pending charges are familiar with cashless transactions like credit or debit card payments. When you make a payment with either your credit or debit card, the merchant charges your account. However, the issued charge may take a while to enable the complete transfer of funds to the recipient. The reason is that the payment has to go through specific third-party processes-payment networks (merchant’s bank and your bank), within which your transaction becomes pending. But the pending charges clear up the moment your card issuer successfully transfers the funds to the merchant for you.
Possible reasons that can delay an exchange.
A little exposure to some examples of possible reasons that can keep your transaction pending helps take the edge off. Here are a few reasons why your transaction might be pending.
Payments outside of business hours.
Due to the wide availability of online financial transactions, you notice that you can make payments whenever you like. However, you will see that your trade stands out as pending for those payments you make outside of the conventional working hours, like the weekends or late at night. But they clear up immediately once the regular working hours are in operation.
Company or merchant operational protocol
Different strokes for different folks. Therefore, some merchants will not accept your payment until what you ordered is shipped already. For example, merchant companies like amazon will keep your payment pending until they have shipped your order out. After which, they will automatically charge your card and transfer the funds.
When you make a large purchase
Often you notice a pending transaction when you make a large purchase. The reason is that making large purchases on credit puts the merchant at considerable financial risk. And to insulate themselves against losses, the merchant may leave your payment as pending.
Tip giving at restaurants.
Because workers at restaurants attend to loads of customers who tip them, it might be difficult for them to enter the tips as they come. Therefore most workers usually wait till the end of their shift to enter their tips, and until then, your payment will be a pending transaction.
How a pending transaction is related to credit and debit card operations
When you swipe your credit card or make certain online transactions, the approved payment fails to reflect on your available balance, such as a pending credit card transaction. Usually, these pending charges do not last longer than 5 to 7 days before they clear up. And the duration for which the amount remains pending depends on the time you initiated the transaction and the time it takes your merchant to complete the transaction.
On the other hand, while the effect of a pending transaction seems easier with credit cards, it is somewhat different with debit cards. The reason is that credit cards only affect your available credit balance. But on your debit card, it limits your actual funds until the hold clears up. As a result, it cripples your access to real funds, which can be unpleasant, especially when you have bills to pay or other urgent financial responsibility.
How a pending transaction relates to PayPal
You can also experience a pending transaction on your PayPal because it is also a cashless marketing method. However, what differentiates it from credit or debit cards is sending payments through the PayPal payment system. As a result, you may be able to change or even cancel your pending payment depending on the dominant factors.
Should you cancel a pending transaction?
Sometimes, while your exchange is still waiting, you may decide that you are no longer interested in the item you paid. Then comes the question of canceling or not canceling the exchange while it is waiting. Since a pending transaction remains in the interim within which both banks (your bank and the merchant’s bank) communicate before transferring funds over to the merchant, the process must be complete. Therefore it might not be possible to issue a cancelation of the pending transaction directly. Such is only possible when the purchase is a duplicate of the same transaction, which might be an error. As a result, it is always safer to contact your card issuer or the merchant, explaining why you want a cancellation. However, this is only possible after the funds have been posted to the merchant. If the merchant refuses a refund, you may have to dispute it with your bank with justifiable reasons before it goes through.
How to cancel on a credit or debit card pending transaction
Suppose you have made a purchase or payment with your credit or debit card and want to cancel. Then you need to contact the merchant and your card issuer with reasons why you wish to cancel. The reason is that you can only withdraw a pending transaction after it has been posted. As a result, only the merchant can authorize a refund from their bank.
However, it would help if you were careful with asking for refunds. The severe charges the merchant insures can cause him to block your card and prevent future purchases in situations where you do not have a solid claim as to why you need a refund.
How to cancel a pending PayPal transaction
Canceling a pending PayPal transaction is only possible when you send the payment to someone whose email or phone number is not linked to a verified PayPal account. But, if you make payment to a merchant that has not automated his payment acceptance, then your funds are left to the merchant to accept or decline. Once the merchant accepts the payment, then there isn’t much you can do about it.
How paystubsnow can help you keep track of your financial transactions?
Although paystubsnow may not precisely keep you from getting a pending transaction on your account, however, as an online paystub generator, it can help you keep track of your financial transactions. With paystubsnow, you can track your purchases and budget your finances by generating free online invoices. You can also create online paystubs for your employees and 1099 forms, among other things.
FAQS: What is a pending transaction?
What is a pending transaction?
It is an approved payment that is not fully processed even though the merchant has accepted your payment. The reason is usually due to making large purchases on credit or transacting outside standard work or business hours.
How long can a transaction be pending?
Depending on when you made your exchange and the duration within which your merchant can process payment, a charge can be pending on your account for five to seven days. The reason is that the period during which the amount is pending is that it takes both banks (your bank and the merchant’s bank) to communicate before the funds are transferred completely.
Can I stop a pending transaction?
Unfortunately, stopping a pending transaction doesn’t rest in your hands. Instead, you should call the merchant and request that he contact the card issuer and cancel the order. Alternatively, you can also request a refund from the merchant. But you need to be careful and make sure you have undeniable reasons for requesting a refund.