Pending PreAuth Posted transaction types
A pending transaction is an approved debit transaction that has not been fully processed yet (i.e. has not been posted). On average a transaction may stay in the pending state for 3 - 5 business days. For pre-authorisations (e.g security deposits for hotels or car rentals), this can be up to 31 days. During this time the pending transaction amount is deducted from the ‘available funds,’ while the ‘account balance’ remains as is.
A posted transaction is a debit transaction that has been fully processed. Once a transaction is posted the account balance on the account is also updated.
To give you a better understanding of the process, here is how a typical payment is handled:
Note that in some instances the description that appears for a pending transaction may change once it is posted.
How Penny deals with pending transactions