Transactions made with your credit or debit cards are processed in a different way, much different than you think. For instance, when you make a hotel reservation with your card, the funds doesn’t leave your account immediately. The transfer will only take place when the merchant tenders a batch of transaction to the bank. This, sometimes, may result in you trying to halt the payment for one reason or another. However, is this possible? Can you halt your credit card payments?
You can’t suspend your credit card payment without a reasonable reason. If you’d like to put such payment on hold, you’ll need to contact your bank (if the merchant isn’t corporative) and present a good reason to halt the payment.
Not all online transactions always go as planned. Sometimes, the service you paid for may not be satisfactory, leaving you to consider putting the payment for the rendered service on hold pending a reversal. In the case of a product, a dent or a crack on the purchased product may prompt you to suspend the payment. All these are good reasons to halt a payment made from a credit card. However, before you journey down this route, you need to know if this move is possible.
Can You Put Your Credit Card Payment On Hold?
Transactions, especially those made with your credit or debit card work in a simple way with the aim of protecting the merchant, and probably you. When you initiate a transaction with your debit or credit card, the funds are not transferred immediately. Rather, it is placed on what is regarded as an authorization hold. During this period, the merchant verifies your card details and checks if you have sufficient funds to complete the transaction.
The authorization hold period usually defers; this means that, there isn’t a definite authorization hold period. For some merchants, it may take 48hrs while for some, it can take as long as 7 days, or even more. The pending period usually depend on the merchant (retailer) or the transaction type. After the merchant has conducted the necessary checks and received the money owed from your bank, the transaction will be marked as complete.
In the event that a transaction goes wrong, what do you do? Is it possible to suspend the payment? Well, it actually depends on your reason. If you present a good reason to your merchant (who should be the first person you should contact based on the Federal Credit Billing Act) the merchant may decide to help you suspend the transaction until the issue is resolved. If the merchant isn’t corporative, you can take the next step by contacting your bank.
For instance, if you book for a hotel using your card and discovered that the room, facilities, and services rendered doesn’t sit well with you, you will definitely want to suspend the credit card payment you made at the front desk. Or if you bought a freezer that is faulty, you’d be looking at suspending the pending payment made to the merchant. In the two cases, you can suspend the payment by contacting the merchant or your bank (if the merchant isn’t willing to cooperate). If things play out well, you’ll get a refund eventually. However, always pay attention to merchants refund policies.
Below are some reasons that may warrant the merchant to suspend the payment and issue a reversal:
- If the transaction wasn’t authorized by you
- A fraudulent transaction
- Duplicate charges
- If you made a transaction and canceled it within the cancellation period provided by the merchant
If by chance, your card was used to carry out fraudulent transactions, the best way to suspend the payment is by contacting your bank. After contacting your bank, your bank will place the transaction on hold and carry out their investigation to determine if the transaction is indeed a fraud.
What Happens When a Credit Card Payment Is on Hold?
For instance, you wake up one beautiful morning to discover that your credit or debit card has been somehow used to purchase a gadget or book for an expensive hotel room. In your confused state, you decide to call a trusted friend who advise you to call your bank so that they can suspend the payment. You eventually end the call, sweating profusely as you try to wrap your head around the situation. That is when you begin to ask yourself what happens when the card payment is suspended?
When a payment from a credit card is on hold, the funds will be restricted. That is, the fund will remain with the bank pending investigation, in the case of fraudulent transaction. At this point the money wouldn’t be released to the merchant until the necessary review has been conducted.
Aside from fraud, a credit card payment can be suspended for other reasons. Some of the other reasons are when a customer isn’t satisfied with a rendered service, when a customer doesn’t receive a purchased item as agreed even after making payment, or when the purchased item doesn’t arrive in good condition. Provided the transaction is still pending and you present a good reason to your bank, the payment can be suspending until all is resolved.
It is always advised to contact the merchant first if you have any issues before you proceed to contact your bank. Only contact your bank when efforts made to contact the merchant is futile. Also remember that you cannot stop a pending transaction from your end, your bank and the merchant are the two likely people that can make that move.
Conclusion:
There are approximately 5.11 million credit card users in America. In fact, as at 2019, there were 39.6 billion combined purchase transaction. Without being a soothsayer, I can guess that not all of those transactions went as planned for the card owners. And that is where the ability to suspend a card payment comes in.
Provided you have a good reason to suspend a card payment, your wish should be granted. Contact your merchant and then your bank if the former isn’t accommodating. Also, remember to have some proof to solidify your claim.
