When you are working with a customer or business and processing a charge on their account, it can take some time depending upon the type of transaction. There is a time limit to how long a merchant has to charge a credit card, where banks will no longer authorize payments after a period of time has passed. To finalize a transaction, you as a merchant have to make sure the payment was processed correctly.
Time Period Businesses Have For Credit Card Transactions
You should expect your business only to have to wait a short period of time before a transaction shows up. It may not be instant, but as long as the transaction was successful, it will go through.
Credit Card Authorization
These authorizations only last between 1 to 30 days, depending on the policy of the credit card issuer. The charge remains until you clear it. If you don’t clear it, the authorization will eventually drop off the customer’s account. It will expire on its own. For example, the maximum hold time for authorization for Discover is 10 days.
Length Of Time To Finalize Transaction
The amount of time it takes to finalize a transaction can be up to five business days. These policies may vary and is entirely dependent on how you run your operation. This typically occurs by the end of the day at the time your business closes if it is a non-digital payment. If someone paid by check and you don’t deposit it until the next day, then the person won’t see a transaction finalized until one or two days later.
Length Of Pending Transactions
Typically, most transactions take not more than five business days. The average is two to four business days. This is if the payment is successful and is in processing. If it takes longer than that, it may be because of some kind of internal issue or processing error. A pending transaction represents owed funds that haven’t been transferred yet, but the amount will no longer be available to the customer.
Length For Transaction To Appear On Debit Card
In most scenarios, transactions on debit cards happen immediately during business hours. This may be overnight if the transaction occurs after business hours. The client may see the purchase pop up as processing immediately or the next day. It will take between 2 to 3 days for the client to see the transaction on their account. Sometimes this can take longer depending on your industry.
Extended Times for Some Industries
A few industries may take even longer for transactions to process. For example, if you own a gas station, it may take five or more days before their transaction appears. That is because the gas station doesn’t know how much gas the customer used until they have finished filling their tank. If you run a hotel, a certain amount might be tied up because the hotel will place a hold on the guest’s account. This allows the guest to reserve a room or place a down deposit before they appear in person. If you own a restaurant, this will also have a similar result.
Learn More About Business Credit Card Processing
If you have additional questions, you can find out more about the processing of customer transactions. You can learn from a reliable team of experts who know all about B2B payment processing.