Refunds -pending transactions

BrownTrout

Does anyone know why refunds show up as outstanding authorisation or a pending transaction, given an auth code is given for a refund. Its not a problem or anything just curious

jonnygee2

Where do they show up as this for you, our of interest? All refunds or just one?

Refunds are not generally authorised, most terminals just present them. Although, very occasionally, I have seen POSs that authorise a refund. I think this might be something they do when the card number has been manually keyed in, to check the card is active and they are refunding to the right card.

If they do authorise, it will show up as pending until it clears. It should obviously show up as a pending positive payment!

BrownTrout

They never show up until the refund hits the account

badger09

I've just presented my M&S debit card in store for a refund of £22.50 and a few minutes later spent contactless £6 in store. In the app, the £6 has been deducted from the available balance but the refund doesn't feature at all.

Can't say I'm surprised by any of that. What were you expecting?

phillw

BrownTrout wrote: »

Does anyone know why refunds show up as outstanding authorisation or a pending transaction, given an auth code is given for a refund. Its not a problem or anything just curious

I assume for the same reason that purchases show up as pending transactions even though you paid for it and have left the shop.

The usual reason given is that banks use overnight batch processing. The pending transactions can be fished out from the batch by the millennial web/app developers but their sworn mortal enemies in the bronze age mainframes refuse to change their methods as they have been doing fine for the last 40 years.