Understanding Pending, Authorized, and Cleared Transactions
Zena card statements often display transactions in various states: Pending, Authorized, and Cleared. Understanding the differences between these states will help you keep track of your spending and maintain financial stability.
Pending Transactions
What is a Pending Transaction?
A pending transaction is an authorization request initiated by a merchant when you make a purchase with your Zena card. When you use your card for a transaction, the merchant requests approval from your card issuer to ensure you have enough available credit. This initial request is known as a "pending transaction."
Key Characteristics of Pending Transactions:
- Temporary Hold: The pending transaction temporarily reduces your available credit limit by the purchase amount. However, the actual deduction from your account hasn't occurred yet.
- Processing Time: Pending transactions can take a few business days to clear. During this period, the merchant's request is verified, and the transaction either moves to the "authorized" or "cleared" status.
- Adjustments and Cancellations: Pending transactions can be adjusted or canceled by the merchant before they move to the "authorized" or "cleared" status. If you notice any discrepancies or issues, contact the merchant promptly.
Authorized Transactions
What is an Authorized Transaction?
An authorized transaction is a pending transaction that has been approved by your credit card issuer. Once the issuer confirms the validity of the transaction, it becomes "authorized." In some cases, merchants might authorize the card for $0.01 while your purchase is being completed, as often seen with gas stations. Some authorized transactions will stay in this state for up to 8 business days.
Key Characteristics of Authorized Transactions:
- Reduction in Available Credit: An authorized transaction still reduces your available credit limit, just like a pending transaction. However, it's one step closer to being deducted from your account.
- Transaction Details: Authorized transactions will often show additional details, such as a transaction date and merchant name, to help you identify the purchase.
Cleared Transactions
What is a Cleared Transaction?
A cleared transaction is one that has been fully processed and deducted from your available credit limit. It represents a completed purchase on your Zena card.
Key Characteristics of Cleared Transactions:
- Deduction from Account: Cleared transactions result in an actual deduction from your balance.
- Statement Inclusion: Cleared transactions appear on your credit card statement, typically with a transaction date and a description of the purchase.