Can I Cancel a Pending Charge on My Credit Card?
Understand your options for credit card authorizations. Learn why stopping a transaction before it posts is complex and what steps you can take.
A pending charge on a credit card statement represents a temporary hold on funds. It indicates a purchase has been initiated but not yet finalized or posted to the account.
Understanding Pending Charges
A pending charge differs from a posted charge because funds are reserved, not yet transferred to the merchant. This temporary hold reduces available credit. Common scenarios include gas station pre-authorizations, hotel or car rental deposits, and online purchases authorized before shipping.
Merchants use authorizations to confirm available credit before providing a service, especially when the final amount might vary. For instance, a gas station may hold a higher amount than your actual fuel purchase. Hotels often pre-authorize an estimated stay cost plus incidentals.
Pending charge duration varies, from a few hours to several business days. Most credit card authorizations expire within one to seven days. Some, particularly for hotels or car rentals, can remain for up to 30 days. The hold automatically drops if the merchant does not finalize the transaction within this timeframe.
Direct Cardholder Cancellation
A credit card holder cannot directly cancel a pending charge through their bank or card issuer. This is because a pending charge is an authorization between the merchant and the credit card network, not a final charge the bank can reverse. The bank’s role is primarily to confirm fund availability and apply the temporary hold.
Credit card issuers lack the authority to remove a pending authorization without the merchant’s initiation. Until a charge formally posts, the financial institution cannot unilaterally intervene. The bank’s ability to act on a transaction begins once it becomes a finalized, posted charge, which then opens formal dispute processes.
Merchant’s Role in Resolution
The merchant is the only entity capable of releasing or finalizing a pending authorization. To resolve a pending charge, contacting the merchant directly is the most effective first step. Reach out to their customer service or billing department, explaining the situation and providing transaction details.
Merchants can void a transaction, release an authorization hold, or process a refund if the charge has already posted. This approach is effective for accidental double charges, mistaken orders, or unrendered services. Document all communication with the merchant, including dates, times, and any reference numbers provided. Maintaining clear records supports your case should further action become necessary.
Addressing Posted Charges
Once a charge transitions from pending to posted on your credit card statement, direct cancellation is no longer an option. The transaction is considered final. If you believe the charge is erroneous or unauthorized, you can initiate a formal dispute process, or chargeback, with your credit card issuer. This process is governed by the Fair Credit Billing Act (FCBA).
To begin a dispute, contact your credit card issuer promptly and provide all relevant details and supporting evidence. This evidence might include receipts, order confirmations, communication records with the merchant, or proof of non-delivery. Under the FCBA, you have 60 days from receiving the statement with the error to notify your card issuer in writing.
Common reasons for disputing a posted charge include unauthorized transactions, billing errors, services not rendered, or merchandise not received or significantly different from its description. The card issuer must acknowledge your dispute within 30 days and investigate the claim within two billing cycles, not exceeding 90 days. If the merchant agrees to a return after a charge posts, they will process a refund, which appears as a credit.