How long does it take for a credit card transaction to settle?

Asked by: Joaquin Lemke  |  Last update: February 19, 2025
Score: 4.2/5 (53 votes)

The short answer here is, it depends. The vast majority of credit card transactions are finalized within five days. However, there are two parties involved in any pending transaction — the merchant and the credit card issuer.

How long do credit card transactions take to clear?

Credit card purchases: Typically, they will post within 3 days, but may take up to 30 days. Cash deposits into a bank account: Typically, they will post by the next business day. Check transactions: May post the same day but could take two to seven business days.

How long does it take to settle a credit card payment?

In a typical timeline for credit cards, transactions are authorized instantly, batched transactions are sent out at the end of each business day, clearing is completed overnight, settlement is completed within one to three business days after the transaction, and funding is completed within two to three business days ...

How long does a merchant have to finalize a transaction?

They can take anywhere from a few hours to five business days to clear, depending on the charge. Restaurants, hotels, and car rental companies often initially list charges as pending until the payment is fully processed.

How long do card transactions take to settle?

Generally it takes about 3 to 5 business days to process a transaction, although it can take up to 10 business days or longer.

Credit Card Reporting Date and Statement Cycle

27 related questions found

How long does a pending transaction take to clear?

A pending transaction may take a day or two to clear. It should then move from your list of pending payments into your current balance. Sometimes, the process can take a little longer depending on the retailer and transaction type.

How long does it take for a transaction to settle?

How Long Does a Transaction Take to Settle? The time it takes for a payment transaction to settle can vary based on several factors: Type of Payment Method: Credit card transactions typically settle within 1-3 business days, while electronic funds transfers (EFT) may take 2-5 business days.

Why is my transaction still pending after 7 days?

The fastest way to resolve this issue is to contact the merchant directly. If they're able to remove the pending transaction, it should be reflected in your account in about 24 hours. If they're not able to help you, pending transactions will fall off automatically after 7 days.

What is the longest that a merchant should retain payment card receipts?

If you have other documentation that shows records of your financial activity, then keeping receipts isn't absolutely mandatory, but it's certainly best practice and could be very helpful should the IRS come knocking. The IRS recommends that you hold onto receipts for at least three years.

How long does a merchant have to claim a transaction?

Timeframes for acquirers average 10-35 days. Each network has different chargeback dispute rules and timeframes, but the deadline is typically 20 to 45 days after the merchant is notified. The entire chargeback process can take up to 120 days.

What is the difference between a settlement and a payment?

Settling a debt means you have negotiated with the lender and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance."

What is the timeline for credit card settlement?

The timeline for settling your credit card debt with the help of a debt relief program can vary significantly depending on a range of factors. On average, though, it typically takes between 24 to 48 months to complete this type of program.

Why do credit cards take so long to process payments?

They batch payments together and send them for processing all at the same time. This can happen as quickly as twice a day, or as rarely as twice a week. There's another reason for the delay: fraud detection. After the initial verification at checkout, the card issuers can take a day or two to investigate purchases.

How long can a transaction remain pending?

Usually, a pending charge will show on your account until the transaction is processed and the funds are transferred to the merchant. This could typically take up to three days but may stretch longer depending on the merchant and the type of transaction.

Can I spend money that is pending?

A pending transaction can place a hold on your account balance and count toward your credit limit until it is processed. That doesn't necessarily mean you can't use your credit card or bank account. But it can affect your available balance—or the funds you're able to access.

Why are credit card transactions pending for so long?

A pending charge, also known as a 'hold', is an approved transaction that your issuer has yet to post to your account balance. This may be because a merchant wants to check you have enough funds available or you made the transaction outside of your issuer's business hours.

What is the 540 day rule for chargebacks?

Within 120 days from the last date the cardholder expects to receive the goods/services (but no more than 540 days from the transaction date). Within 120 days of the date the cardholder was informed that the goods/services would not be provided (but no more than 540 calendar days from transaction).

What is the longest receipt ever recorded?

The longest receipt in the world

In an attempt to save the store from bankruptcy, the charity bought every single item from the store—costing them over $19,000 and generating a receipt over 57.5 feet long. There were more than 3,000 items listed on the receipt, and the transaction took more than six hours to process!

How many chargebacks are you allowed?

THE INDUSTRY-WIDE CHARGEBACK RATIO MAXIMUM

A 1% chargeback rate is the industry-standard maximum, which equates to one chargeback per 100 successful orders. And that 1% is usually the absolute maximum allowed for direct merchant accounts. Those accounts deal directly with Visa or MasterCard.

How long does it take for a pending transaction to drop off?

Generally, pending transactions clear within one to five business days, but the exact timing depends on the type of transaction, the payment network, and the bank or credit card issuer.

How long do pending transactions take to clear?

When you make a purchase using a credit or debit card (selecting credit, contactless payment or online/phone purchase) the bank will authorise the payment and immediately deduct that amount from your available funds. This authorised amount is held and appears as a “pending” transaction for up to 5 days.

Why hasn t my pending transaction gone through?

Some retailers don't process payments straight away so these will not appear in your pending transactions. The payment will appear when the retailer processes it, usually within a couple of days. Examples of offline payments include payments made on flights, parking, toll roads and market stalls.

How long does a merchant have to settle a transaction?

Since transactions go through the settlement process before you get paid, it's important to understand how long it takes. In most cases, you can expect to receive the money from sales within one to two business days from the time of the transaction. “Day 0” refers to when a transaction is authorized and captured.

Can a pending credit card transaction be declined?

A pending credit card purchase might be declined if another merchant has placed a hold on your credit card. A pending purchase made with your bank account or credit card could be declined if your account doesn't have enough funds or the merchant won't accept payment from your bank.

How long does a pending settlement take?

This process can take a while to complete. Usually, you can expect to receive your compensation within a month. However, some insurance companies may delay issuing settlement checks for whatever reason. Waiting for the insurance company to process and issue a settlement check can be unsettling.