Do Declined Transactions Show as Pending?

It can be perplexing to see a transaction you know was declined still appear on your bank or credit card statement as “pending.” This often leads to confusion about whether funds have been deducted or are at risk. This article explains the nature of pending transactions and why a declined payment might still briefly show up on your account.

What is a Pending Transaction

A pending transaction represents an authorization hold placed on funds or credit, rather than a final charge. When a card is used, the merchant’s payment system sends an authorization request to the issuing bank. This request verifies that the account is valid and has sufficient funds or available credit to cover the intended purchase. Upon approval, the bank places a temporary hold on the specified amount, which effectively reduces the available balance or credit limit. This hold serves as a reservation, ensuring the funds are readily accessible when the merchant later finalizes the transaction.

Why Declined Transactions Show as Pending

The appearance of a declined transaction as pending stems from the two-step process of payment authorization and settlement. When you attempt a purchase, the merchant’s system first seeks authorization from your bank to ensure funds are available. Even if your bank then declines the transaction—due to insufficient funds, a security flag, or incorrect card details—the initial authorization hold might not be immediately released by the merchant’s system or the payment network. This temporary discrepancy can occur due to delays in communication between the merchant’s point-of-sale system, the payment processor, and your bank. The system might have successfully placed the hold before fully processing the decline message, leading to the pending status.

When Pending Declines Clear

Most pending holds, including those from declined transactions, are temporary and will automatically clear from your account. If the transaction is not finalized by the merchant, the bank will release the held funds. This automatic release typically occurs within 24 to 72 hours, though it can sometimes take longer, ranging from three to five business days. For some merchants, like hotels or car rental agencies, authorization holds can last up to several weeks. The exact clearing time varies based on bank policies, merchant practices, and transaction type; if a hold persists beyond a week for a declined transaction, it may warrant further attention.

What to Do About Pending Declines

If you notice a declined transaction still showing as pending, monitor your account activity and check your online banking or mobile app to see if the hold automatically clears within the expected timeframe. Keeping track of the transaction date and amount is helpful. Should the pending status persist beyond a few business days, contact the merchant directly to confirm the transaction was declined and inquire if they can manually release the authorization hold. While not always possible, some merchants may be able to expedite the process. If the hold continues without resolution, contact your bank or credit card issuer, providing them with all relevant details, including the date, amount, and merchant name, to assist their investigation and facilitate the hold’s removal.