If you’ve ever made a Credit Card Purchase for buying something, you might have noticed a “pending transaction” on your account.
These transactions typically show up at the top of your recent statements and, while not yet finalized, they do temporarily reduce your available balance.
Pending transactions can also appear in your PayPal account, depending on how the person you paid prefers to receive funds.
In this post, we’ll discuss the tips to cancel a credit card purchase.
What Is a Pending Transaction?
A pending transaction is a purchase that has been approved but is still being processed by your bank or card issuer.
While it’s pending, the transaction can affect your available balance (the amount you can still spend), but it won’t yet be part of your outstanding balance, and it won’t incur interest.
Once the transaction is finalized, it will either be added to your current balance (if it’s a credit card) or deducted from your bank account (if it’s a debit card).
Pending transactions usually settle within a few days, but in some cases, they can take longer.
Delays might occur if the merchant is waiting to ship the item or if a hold is placed on your card for services not yet completed, like a hotel stay.
Can You Cancel a Pending Credit Card Transaction?
Typically, you can’t cancel or dispute a pending transaction with your card issuer.
Banks and credit card companies usually handle disputes only after a transaction has been posted to your account because the final amount could change (such as when a tip is added to a restaurant bill).
Instead, the best approach is to contact the merchant directly and ask them to resolve the issue. The merchant might be able to cancel the pending transaction before it’s finalized.
How to Cancel a Pending Credit or Debit Card Transaction?
If you want to cancel a pending transaction, here’s what you can do:
Step 1
Contact the Merchant Reach out to the merchant—the store or vendor you purchased from—as soon as possible, ideally within a day or two.
They are the only ones who can help cancel the pending charge.
Step 2
Ask the Merchant to Release the Hold Request the merchant to contact your card issuer and ask them to release the hold.
If successful, this will free up the funds in your account.
How to Dispute a Posted Credit Card or Debit Card Transaction?
If a pending charge eventually posts and you believe it’s incorrect, you can dispute it more easily once it’s finalized.
Step 1
Write to the Bank Under the Fair Credit Billing Act (FCBA), you have the right to dispute a charge. You can write to your bank to notify them of the issue.
Banks are required to acknowledge your dispute within 30 days and must resolve it within two billing cycles (up to 90 days).
Many banks also allow you to dispute charges online, which can be faster and more convenient.
Step 2
Continue Paying the Undisputed Portion of Your Bill While your dispute is being resolved, you can withhold payment for the disputed amount.
However, you should still pay the rest of your bill as usual to avoid late fees or interest on the undisputed portion.
The Bottom Line
Cancelling a Credit Card Purchase can be tricky and isn’t always straightforward.
If you need to remove a hold or a pending transaction, your best bet is to contact the merchant directly and ask them to cancel the authorization.
Once the transaction has been finalized, you have more control over disputing any incorrect charges, and banks are required to respond to your concerns promptly.
Frequently Asked Questions
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How long does a pending transaction take to post?
Pending transactions usually post within three days, but it can take up to five days or longer depending on the merchant’s processing time.
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Can you cancel a pending transaction online?
In most cases, no. To cancel a pending transaction, you’ll need to contact the merchant directly unless it’s a PayPal payment to an unrecognized email or phone number.
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Why can’t a pending transaction be cancelled?
Pending transactions are temporary and can change before they are finalized. Because of this, they can’t be altered until they post to your account.
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Can I cancel a card purchase if I change my mind?
No, you can’t Credit Card Purchase or transaction after you’ve authorized it. If you change your mind, you’ll need to contact the seller directly to discuss returns or refunds.
