Finance glossary
Pending Transaction
Also known as: Pending payment, Unsettled transaction
In simple terms
A pending transaction is a payment that has been approved but has not fully left your account yet. The money is set aside, so your available balance drops even though the payment is not final.
On this page
What does pending transaction mean?
A pending transaction is one that your bank has authorised but not yet settled. It shows on your account as reserved, reducing your available balance, but the money has not finally moved and the amount can still change or be cancelled.
You will often see this after paying by card, when a retailer takes a pre-authorisation, or when a payment is waiting to clear over a weekend or bank holiday.
How a pending transaction works
When a payment is authorised, the funds are held while the retailer completes its side. Once it submits the final amount, the transaction settles and moves from “pending” to a normal completed entry, usually within a couple of working days.
Until it settles, a pending amount can be adjusted — for example a fuel or hotel hold may be replaced by the true charge — or dropped entirely if the retailer never claims it, in which case the held money returns to your available balance.
How could this affect me?
Pending transactions explain why your available balance can look lower than you expect. If you bank close to zero, a pending hold can push you towards an overdraft even though the payment is not final.
If a pending payment looks wrong, it is usually best to wait until it settles before disputing it, as the amount may still change. Genuinely unauthorised payments can be challenged once they appear.
Things to watch out for
- A pending payment lowers your available balance before the money has actually gone.
- The final amount can differ from the pending figure, especially with fuel or hotel holds.
- A pending entry that is never claimed will drop off and the money returns to you.
- It is usually best to wait for a payment to settle before disputing it.
Know your rights
- Once a payment settles, any transaction you did not authorise must be refunded under the Payment Services Regulations 2017.
- If your bank handles a disputed payment unfairly, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Understanding your bank balance and pending payments (opens in a new tab). Accessed 22 Aug 2026.
- UK Finance, How card payments settle (opens in a new tab). Accessed 22 Aug 2026.