How to Cancel a Pending Transaction On Your Credit Card, Debit Card, or PayPal Account

If you've ever paid for something with a credit or debit card, you've probably seen that your account shows a pending transaction. These charges will almost always be found at the very top of your most current statements. Although they may or may not be permanent, they will have an impact on the overall amount of money that is available to you. You may also be able to locate pending transactions in your PayPal account; the location of these transactions will vary according to the preferences of the person you are paying. Seeing all of those pending transactions can come as a bit of a surprise, particularly if you weren't anticipating seeing them in the first place. Find out more about pending transactions, such as how to cancel one and how to dispute a transaction that has already been completed.

Key Takeaways

This status means that a transaction is "pending." This means that your card issuer has approved a payment, but it has not yet been made. The amount of credit or money you can use right now will be affected by a transaction that is still pending. To stop a charge that has already been made, you usually need to get in touch with the business that made the charge. If you want to dispute a transaction that has already been posted, you should call your bank or the company that issued your card.

What Exactly Is a Transaction That Is Pending?

When you swipe your debit or credit card at a retailer's terminal, the business will put a charge on that card. After that, the charge is put through a process that involves multiple parties, including payment networks, your bank, and the actual merchant. The processing and clearing of each of these phases take some time. The status of your transaction is currently listed as "pending" while it is being processed by the system. The transaction will be considered complete and will be posted to your account as soon as the card issuer has sent the funds to the merchant on your behalf. Because it is such a well-oiled machine, the vast majority of the time there won't be any unanticipated charges waiting to be processed in your account.

Charges for Prior Authorization

You may notice that a pending transaction on your account is for a greater amount than a purchase that you have recently made (or intend to make). This might take place whenever you fill up your petrol tank or book a stay at a hotel, for example. In order to handle a very large fill-up, gas stations may post a significant pending transaction on your account. When the transaction is processed, the amount of gasoline that you actually purchased will be deducted from your bank account. Hotels typically require a deposit to be paid at the time of check-in to cover any incidental charges or damage that may occur to the guest room. When you check out of the hotel, you will receive a return of your deposit, minus any additional fees that you incurred during your stay. The entire transaction that is still outstanding will be cancelled without further action on your part if there are no further charges. A number of states in the United States have made efforts to establish safeguards against potentially extremely large transactions. For example, in the state of Tennessee, retailers are required to notify customers whenever they make a debit card charge that exceeds 25% of the value of the actual purchase, or $50.

Transactions That Are Still Pending and Debit Cards

When making purchases that result in holds being placed on your account, it can be a dangerous proposition to use a debit card rather than a credit card. This is due to the fact that a transaction that is still being processed on a credit card will merely reduce the amount of available credit. However, if there is a transaction that is still in the process of being processed on your debit card, you will not be able to access the actual money that is in your account until the transaction is completed. This could be an issue for you if you have outstanding expenses to pay and the amount that was withheld from you has not yet been returned to you.

Transactions That Are Still Pending, Along with PayPal

In the same way that pending transactions can happen with debit or credit cards, they can also happen with PayPal. However, in addition to handling financial transactions, PayPal also allows users to send payments through its platform. It's possible that the transaction you just made will show up as "pending" in your PayPal account, even if you sent it to a friend or a business. You may be able to make adjustments to, or even cancel, the payment before it is received, depending on the circumstances.

How to stop a transaction on your credit card or debit card that is already being processed

It's probable that you'll wish to call off a pending transaction as soon as you possibly can at some point. It's possible that this will occur if a hold is placed on your debit card and, consequently, your bank account. Your card issuer has no authority to cancel or otherwise alter the transaction in any way until it has been finished, so this is unfortunately not something that can be done very easily. If you want to cancel the transaction before the deadline, get in touch with the business that first processed the charge. Request that they get in touch with the company that issued your card and cancels the transaction. The merchant is allowed to ask for the hold to be taken off the account. Get in touch with your card's issuer as soon as possible if you discover a pending transaction that you are certain you did not conduct, such as a fraudulent purchase. They are able to collaborate with you to monitor the transaction, protect your privacy, and lessen your culpability in the event that the charge is ultimately processed.

How to Put a Stop Payment on an Upcoming PayPal Transaction

There are two possible explanations for why a pending transaction would appear in your account after you have already transferred money to another person. To begin with, it's possible that you transferred funds to a recipient whose phone number or email address isn't affiliated with a PayPal account that's been validated. If this happens, you can stop your payment by going to the "Activity" section of your account. On the other hand, it's possible that you transferred money to a retailer that doesn't automatically take payments. This merely indicates that the retailer is required to decide whether or not to accept your payment. You won't be able to back out of this transaction once the funds have been paid to this kind of retailer, even if you change your mind later.

How to Challenge a Purchase That Has Already Been Made with Your Credit or Debit Card

Do not be concerned in the event that an erroneous pending charge that you have noticed eventually posts as a transaction. A transaction that has already been posted can be disputed more easily than one that is still pending. In accordance with the Fair Credit Billing Act (FCBA), financial institutions are expected to recognize a contested transaction no later than thirty days after receiving your formal complaint regarding the transaction in question. After that, they have to address the problem within two billing cycles, which cannot be longer than 90 days from the day you filed your complaint. The good news is that many financial institutions will provide you with the opportunity to contest a charge online, which is sometimes a more convenient option than writing a letter of protest.

The Crux of the Matter

Regrettably, it's not always easy to back out of a transaction that's still in progress. If you want to cancel a hold or a transaction that is still pending before it is posted, you will need to get in touch with the merchant and ask them to cancel the authorization on your behalf. After the completion of the transaction, you will have more control over whether or not the charge is reversed. The Fair Credit Billing Act (FCBA) gives you the right to dispute any charges that you think are wrong, and banks are required to respond to your dispute in a timely manner.

Questions That Are Typically Asked (FAQs)

How long does it take for a transaction that is pending to actually post?

When a transaction is processed by the merchant, the merchant determines how long it takes for the transaction to be posted to the customer's account. The posting of transactions typically takes three days but can take up to five days or even longer.

Is it possible to cancel an online transaction that is still pending?

Typically, the answer is no. If you have not used PayPal to send money to an unknown email address or phone number, you will need to get in touch with the retailer in order to have them cancel the transaction that is currently being processed.