Exploring Pending Transactions

Understand the meaning of pending transactions and discover the reasons they occur along with effective solutions.
SET UP UPI
Exploring Pending Transactions
SET UP UPI
5 mins
15 Nov 2024

What is a pending transaction

A pending transaction is a temporary status that occurs when a transaction is authorised but not yet fully processed. This means that while the merchant has confirmed your card is valid and there are sufficient funds in your account, the actual transfer of funds has not been completed. During this period, the transaction amount is deducted from your available funds but does not yet affect your overall account balance. Common examples include payments for hotel bookings or car rentals, where the merchant may place a hold on funds until the service is rendered or completed1

. The pending status can lead to confusion, as it may appear that a payment has not gone through or that you have been charged multiple times. Understanding this concept is crucial for managing your finances effectively and ensuring that you are aware of all transactions currently in process.

Common causes of pending transactions

Pending transactions can be a source of frustration and confusion for many. Understanding the common causes can help you manage and resolve these issues more effectively.

Here are some typical reasons why transactions may remain pending:

  1. Insufficient funds: One of the most common reasons for a pending transaction is insufficient funds in the account. If there is not enough money to cover the transaction, it may remain pending until funds are available or the transaction is canceled.
  2. Bank processing delays: Banks often take time to process transactions, especially during weekends, holidays, or high-volume periods. This can result in transactions remaining in a pending state until the bank completes the processing.
  3. Merchant delays: Sometimes, the delay is on the merchant’s end. Merchants may take time to process payments, especially for large transactions or during busy periods. This can cause the transaction to remain pending until the merchant finalizes it.
  4. Verification and security checks: Transactions may be flagged for additional verification or security checks, especially if they are unusual or large. This can cause a delay as the bank or payment processor verifies the transaction details.
  5. Technical issues: Technical glitches or system outages at the bank, payment processor, or merchant can cause transactions to remain pending. These issues are usually resolved once the systems are back online and functioning properly.
  6. Pre-Authorisation Holds: For certain types of transactions, such as hotel bookings or car rentals, merchants may place a pre-authorisation hold on your account. This hold can appear as a pending transaction until the final amount is confirmed and processed.
  7. Incorrect or incomplete information: If there are errors in the transaction details, such as incorrect account numbers or incomplete information, the transaction may remain pending until the issues are resolved.
  8. International transactions: Transactions involving currency conversion or international transfers may take longer to process due to additional steps and checks required by banks and payment processors.
  9. User actions: Sometimes, users may inadvertently cause delays by not completing necessary steps, such as confirming a transaction or providing additional information requested by the bank or merchant.

Where is a pending transaction deducted from?

Pending transactions are deducted from your available funds, which represent the amount of money you can spend at any given moment. This is different from your total account balance, which includes both available and pending amounts. When you check your account, it's essential to look at the available funds to understand how much money you can actually use for purchases or withdrawals. For instance, if you have $500 in your account but $100 is pending due to an authorisation for a recent purchase, your available funds would only show $400.

. This distinction helps prevent overspending and ensures that you have a clear picture of your financial situation at any time.

How long do pending transactions take to clear?

Pending transactions typically take between 3 to 5 business days to process fully. However, some transactions may take longer, extending up to 10 business days depending on various factors such as the merchant's processing times and the type of transaction involved.

. For example, if you've made a pre-authorised payment for services like hotel accommodations or car rentals, it might take up to 7 days for those funds to be credited back after cancellation or completion of the service. Understanding this timeframe can help you manage your finances better and anticipate when funds will be available again.

Pending and complete transactions

Pending transactions differ from complete transactions in that they have not yet finalized in your account. When a merchant requests authorization for a payment, it appears as pending until they process it completely. For instance, if you order multiple items and only one is ready for delivery, the total amount may initially show as pending until each item’s payment is processed separately.

. In such cases, you might see part of the total amount deducted from your balance while other portions remain pending. This distinction can lead to confusion if you're not aware of how merchants handle authorisations and completions.

Can I stop or cancel a transaction while it's pending?

Once a transaction appears as pending in your account, it cannot be stopped or canceled directly. If you realise that you do not recognise a transaction or believe it was unauthorised, you can raise a dispute with your bank or financial institution.

. However, this investigation can only begin once the transaction has fully processed and is no longer in pending status. It’s crucial to keep an eye on pending transactions and act promptly if something seems amiss.

Expired or cancelled transaction

Sometimes, a pending transaction may disappear from your account history without any action taken by you. This typically indicates that the transaction has either expired or been canceled by the merchant before processing.

. In such cases, the amount will be returned to your available balance. It's advisable to monitor your account regularly for any unauthorised transactions and contact your bank if discrepancies arise.

What to do if you don't recognise a transaction

If you notice a UPI transaction on your account that you don’t recognise, take immediate action. First, check your recent transactions to ensure it’s not a purchase you made or a subscription service. Sometimes, transactions appear under different names.

Next, contact your bank right away. Use the customer service number provided on their website or your bank statement. Be prepared to give details like the transaction amount, date, and any other relevant information. This helps them investigate effectively.

You can also block your debit or credit card to prevent further unauthorised transactions. Most banks offer options to block cards through their mobile apps or online banking platforms.

If the transaction is fraudulent, file a complaint with your bank. They will guide you through the process of disputing the charge. Additionally, consider reporting the incident to local authorities or cybercrime units for further assistance.

Lastly, monitor your account closely for any new unauthorised transactions. Keeping an eye on your finances helps catch issues early and ensures your financial security.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

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Frequently asked questions

What does it mean when a transaction is pending?
When a transaction is pending, it means that the transaction has been authorised but not yet fully processed. The funds are in transition between accounts. During this time, the transaction affects your available balance, which may lead to confusion regarding how much money you can spend until it is finalised.

Where will the funds for a pending transaction be taken from?
Funds for a pending transaction are deducted from your available balance. This balance reflects the amount of money you can use for purchases or withdrawals at any given time. It is important to monitor your available balance to avoid overdrafts or declined transactions while the pending transaction is still in process.

How long does it usually take for a pending transaction to complete?
Pending transactions typically take 2 to 3 business days to complete but can sometimes take longer, depending on the merchant and transaction type. In some cases, they may post immediately or take up to 30 days. Factors like weekends and holidays can also affect processing times.

Is it possible to cancel a transaction while it is still pending?
It is possible to cancel a pending transaction, but this usually requires contacting the merchant directly. If you act quickly and the order hasn't shipped, they may be able to cancel it. However, banks generally cannot cancel pending transactions on their own.

What are the common reasons for delays in pending transactions?
Common reasons for delays in pending transactions include merchant processing times, which can vary significantly based on their internal systems. Additionally, bank holds may occur for security checks, especially for large amounts. Weekends and holidays can further extend processing times as banks typically do not operate during these periods.

How can I cancel a pending transaction?

Cancelling a pending transaction depends on the type of transaction and the policies of your bank or payment processor.

Here are some general steps you can follow:

  1. Contact your bank or payment processor:

    • Reach out to your bank’s customer service or the payment processor’s support team as soon as possible.

    • Provide them with the details of the transaction you wish to cancel, such as the transaction ID, amount, and date.

  2. Check the merchant’s cancellation policy:

    • If the transaction involves a purchase from a merchant, check their cancellation policy. Some merchants allow you to cancel pending transactions directly through their customer service.

  3. Use online banking or mobile app:

    • Some banks and payment processors offer the option to cancel pending transactions through their online banking portal or mobile app. Look for a “Cancel” or “Dispute” option next to the pending transaction.

  4. Act quickly:

    • Pending transactions can sometimes be processed quickly, so it is important to act as soon as you realise you need to cancel the transaction.

Why is my transaction still pending after several days?

There are several reasons why a transaction might remain pending for an extended period:

  1. Bank processing delays:

    • Banks may take longer to process transactions during weekends, holidays, or high-volume periods. This can result in transactions remaining pending for several days.

  2. Merchant delays:

    • The merchant may take time to process the payment, especially for large transactions or during busy periods. This can cause the transaction to remain pending until the merchant finalise it.

  3. Verification and security checks:

    • Transactions flagged for additional verification or security checks may take longer to process. This is common for unusual or large transactions.

  4. Technical issues:

    • Technical glitches or system outages at the bank, payment processor, or merchant can cause transactions to remain pending. These issues are usually resolved once the systems are back online.

  5. Pre-authorization holds:

    • For certain types of transactions, such as hotel bookings or car rentals, merchants may place a pre-authorisation hold on your account. This hold can appear as a pending transaction until the final amount is confirmed and processed.

  6. International transactions:

    • Transactions involving currency conversion or international transfers may take longer to process due to additional steps and checks required by banks and payment processors.

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