The rise of overdraft fees has led to cause for concern for many consumers who might not realize the methods through which banks process transactions. A common question presented by banking customers is whether or not pending transactions affect an available balance inside an account, and whether they can lead to more overdraft fees.

What is a Pending Transaction?

A transaction might be flagged as pending if you use your card for a purchase but the funds have not yet transferred over. This can occur if the merchant hasn’t yet completed their transactions yet or if the purchase is quite large. This can also occur if the transaction is made late in the day, such as after 8:30 p.m. While the full amount of the transaction might appear, the charge could also show up as a small amount like one dollar.

According to fiscaltiger.com, if you find one of these smaller pending charges on your balance but know that you didn’t complete any transaction with that party, you might need to dispute the charges. This can be confusing for a consumer who has a lot of transactions going on in their bank account who might not see some of these smaller charges.

Do These Pending Charges Count Against My Available Balance?

These charges are not counted as part of the outstanding balance in your account, but do count against your available credit or bank balance. If this is a credit card, the pending charge won’t get factor into your balance, so it is not considered a debt yet.

How Long Does a Pending Transaction Take to Process?

If you have a pending transaction on your account because the merchant has not yet completed their transactions, it could take up to five days for a total clearing of the charge. However, pending transactions could affect available credit right away even if it hasn’t fully processed yet.

What Does “Funds Available” Mean?

When this shows up in your bank account online or your mobile app, this means funds that can be withdrawn from your account at that point in time. A low available balance could mean that you have deposits that have not yet clear yet or that there are numerous authorizations or withdrawals currently held against your account.

Funds that are not yet available show up most often when you have made a checking or other deposit that has not fully cleared yet. This is because the bank might not yet know if the deposit is legitimate and will therefore not allow you to use the money yet.

Are There Other Balances in My Bank Account?

According to The Balance, you might also notice that your balance is affected by payments you’ve scheduled through somewhere else. Future authorizations can reduce your available balance. You might also notice that you have an “account balance” or a “running balance.” This means that all of your funds are included in the balance presented, including those that are being held and those already in the account.

How Do Overdraft Charges Affect Your Balance?

When a charge is made against your available balance, this could push your account into the negative. Some financial institutions might be charging these overdraft fees inappropriately. Consumers with different institutions, including First Republic Bank, should monitor their accounts over mobile app to notice charges right away.

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf.

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This article is not legal advice. It is presented
for informational purposes only.