Will a Pending Transaction Go Through If Card Is Locked?

It is a common scenario to question what happens to transactions already initiated if a payment card is subsequently locked. Understanding the distinct stages of a card transaction and the specific functionality of card locking features is important for managing personal finances and security. This article clarifies how these elements interact, particularly concerning transactions already in progress.

Understanding Pending Transactions

A pending transaction is a temporary authorization hold placed on funds in a cardholder’s account, indicating a recent purchase that has not yet fully processed. When a card is swiped, inserted, or used online, the merchant’s payment system requests authorization from the cardholder’s bank. This initial step verifies that the account is valid and has sufficient funds or available credit to cover the purchase amount. If approved, the bank places an authorization hold, which temporarily reduces the cardholder’s available balance or credit limit.

The transaction remains pending until the merchant formally settles the charge. This involves the merchant sending authorized transactions to their acquiring bank, usually at the end of the business day. The acquiring bank processes these through the card network to the cardholder’s issuing bank, which deducts the amount and transfers funds to the merchant. This process, from authorization to final settlement, can take a few hours to several business days, commonly around 3 days, depending on processing times.

The Function of Card Locking

Card locking is a security feature offered by most banks and credit card companies that allows cardholders to instantly disable their card for new purchases. This feature is typically accessible through mobile banking applications or online banking portals, providing a convenient way to control card usage.

The primary purpose of locking a card is to prevent unauthorized transactions from occurring after the card has been misplaced, lost, or potentially compromised. When a card is locked, any attempts to initiate new transactions with that card number will generally be declined. This action serves as a temporary safeguard, giving the cardholder time to locate a misplaced card or to assess a potential security breach without immediately canceling the card. Unlike canceling a card, which permanently deactivates the card number and often requires issuing a new one, locking provides a reversible solution for immediate security concerns.

Impact on Pending Transactions

In most cases, a transaction that has already been authorized and is in a “pending” state will still proceed to full settlement even if the card is subsequently locked. This occurs because the authorization hold, which secures the funds for the merchant, was granted before the card was locked. The merchant has already received confirmation from the issuing bank that the funds are available and reserved for that specific transaction.

The card lock feature primarily prevents new authorization requests. Since the pending transaction has already passed authorization, the merchant is simply waiting for the financial institution to process the final transfer of funds based on the initial approval. An already authorized pending transaction will complete its cycle. Recurring payments, such as subscriptions or bill payments, are also typically unaffected by a card lock, as they often rely on pre-established authorization agreements.

Steps After Locking Your Card

After locking a card, it is important to take appropriate steps based on the situation. If a pending transaction that was not intended still goes through, the cardholder may need to contact the merchant first to resolve the issue directly. Many merchants can address discrepancies or process refunds. If direct resolution with the merchant is unsuccessful, or if the charge is fraudulent, the cardholder should dispute the charge with their bank.

Disputing a charge with the bank typically involves contacting customer service, often within 60 days of the charge appearing on the statement, and providing transaction details. Banks investigate claims and may issue a temporary credit during review. If the card was locked to prevent new, unauthorized transactions, any attempts to use it will be declined, and the cardholder may receive an alert. To resume normal card usage, the card can be unlocked through the same mobile app or online banking portal. If the card is truly lost or stolen, report it to the bank and request a new card, ensuring the old card number is permanently deactivated.