If I Lock My Credit Card Will It Stop a Pending Payment?

When a credit card transaction appears as “pending,” it can cause concern, especially if the purchase was unintended or fraudulent. Many consider locking their credit card to prevent the transaction from processing. This article explains whether locking your card stops a pending payment and outlines the appropriate steps to take for unwanted transactions.

Understanding Pending Transactions

A pending transaction represents an authorization hold placed on your credit card by the issuer, indicating that a merchant has requested and received approval for a specific amount. This is the initial phase where funds are reserved from your available credit limit, but the final charge has not yet posted to your account. The distinction lies between authorization, which confirms fund availability and reserves them, and settlement, which is the final transfer of funds to the merchant. During this pending period, the authorized amount is generally unavailable for other purchases.

The Purpose of Card Locking

Card locking features are designed as a security measure. This function allows cardholders to immediately prevent new authorization requests from being approved on their account. It provides a quick way to safeguard against unauthorized spending if a card is misplaced or stolen. While it blocks new purchases, it permits pre-authorized charges, such as recurring bill payments or credit adjustments like returns, to process.

How Locking Affects Pending Transactions

Locking a credit card does not halt a payment that is already in a pending state. This is because the transaction has already passed the authorization stage; the card issuer has approved the charge and placed a hold on the funds. The card lock feature is designed to prevent new authorization requests from being approved. It does not reverse or intervene with transactions awaiting final settlement by the merchant.

Steps to Address Unwanted Transactions

Since locking your card will not stop an already pending payment, direct action is required to address unwanted transactions. The initial step is to contact the merchant directly to request a cancellation or refund, especially for transactions still in the pending phase. Providing the merchant with transaction details, such as the date, amount, and last four digits of the card, can facilitate this process.

If contacting the merchant is unsuccessful or inappropriate, the next course of action involves reaching out to your credit card issuer. For unauthorized transactions, such as fraudulent charges, federal regulations like the Fair Credit Billing Act (FCBA) provide protections, limiting cardholder liability to $50 if reported promptly. For disputes over goods or services received, such as an incorrect charge or non-delivery, the issuer can initiate a formal dispute process, which requires submitting details within 60 days of the statement date on which the charge first appeared. The card issuer will then investigate the claim, which can take several weeks to resolve.