"Pending" .... but what is it exactly?

uk1

Good evening all.

It's possible or probable that no banking employee is around to answer this as I'm not seeking opinions but just a factual explanation on something that is defeating me.

Like many I order online from many sources which largely process through my Chase current account.  The issue that confounds me - not helped when I ask Chase to explain is why does "pending" transactions seem to be treated diffrently with almost unlimited variations.

So a few examples.

I order from Ocado at two different addresses.  I always book dates as they open - around 8 weeks in advance with a dummy holding orders to simply secure the chosen date and time.

Ocado #1.  This is their main site and main app.  When I make an initial order, I always make that initial order larger  (4 bottles of Voddy normally does it) than I know the order will turn out to be after subsequent editing because they will take me through to 3D Secure and ask that I approve it at Chase.  I go to chase and approve it.  I go back to Ocado and they have listened and know it's approved.   This transaction does not appear on my Chase account as pending and no harm has been done to anyone.  The cuuning trick means that when I subsequently edit the order, if it is less than it doesn't ask for any more approvals it is happy and content.  If I increase the order, it thinks about it and if it isn't too much it doesn't take me back to 3D Secure but simply accepts the order.  If it's a lot it'll ask me to approve ity. However, no debit appears on my account until after the delivery has  been made and any returned items to the driver and bags are debited and the final charge appears shortly after.  So the debit never appears as either pending or taken but has been approved and only turns up after the delivery driver has left.  Simples.

Ocado #2.  This seems to be a different app for people in the West Country and has a seperate (annual) subscription which Ocado refund to me as I already have the main account but cannot use that for Devon orders.  The main app doesn't like Devon.  When I make this order, it requests the same 3D Secure approval.  Except whenever I change the order, even if I reduce it I have to approve it every time.  I cannot lull it into a false sense of security buy adding 4 bottles of voddy and removing one whenever I add something.  So whenever I make a change it always wants to be reassured by taking me to 3D Secure, and then Chase and then to approve it and then back to Ocado #2 app.  But the charge does not appear on the account and I can still spend away and it only turns up after delivery.

NEW! Iceland.  On Iceland, today.  I made up the order adding stuff I don't need to make the approved amount more and then approved it via 3D Secure.  But here it goes all wierd on me.  Iceloand says it's a pending charge but the charge isn't "Pending" it is taken as a debit and reduces my balance immediately.  If I then reduce the order it promises and immediate credit.  So this "pending transaction" isn't pending but a real debit.  And although  Iceland say that any order reductions will receive a credit that they process immediately "but some banks may take up to 5 days to process" Chase say that credit and debits appear in real time but for some reason that hasn't been so with credits.  So a reserve or pending transaction from Iceland reduces my account byt the whole amount and cannot be spent elsewhere and to me is not “pending".

Amazon.  With Amazon, they seem to like and trust me. They very rarely ask for 3D Secure and never take the amount until they despatch it. Except sometimes.  But when and why I don't understand but I can largely sort things out.

So Iceland was the straw that broke this Camel’s back.  It isn’t a pending charge if it has been taken from my account and I cannot therefore spend it.  Pending doesn’t mean “not-pending  but you use to have this cash to spend today as you wish but Chase are holding it in case Iceland don’t cancel the transaction or it expires but we are not yet passing it to Iceland”  But both Iceland and Chase insist it is a pending charge and I have entered what feels like a twilight zone of virtual reality. Pending should mean something precise and clear that everyone commonly understands and thinks has an identical practical meaning.  It seems to me that it looks like all merchants are using pending in a different way and banks do not impose on merchants any set of strict standards and consistency and rules that is totally across banking is transparent and therefore customers can then understand,  But maybe I have it wrong. 

When I ask Chase to explain, although I'm certain it's a human I had to to give up. The answers got more patronising and started to become increasingly contradictory. To be courteous, I’ve posted a link to this on my Chase chat, in case they wish to help. 

Can anyone authoritatively explain why pending transactions are handled so differently when to my simple mind it should be a standard.

Thanks for the forum's patience and apologies for any typos.

born_again

It's the retailer that requests a pending/holding amount. Nothing to do with bank.

Some retailers will not bother they just check the card is valid & that is enough. Others will request say £1, others will request the full amount.

Amazon do their own thing. They are so different from any other retailer. But that is their choice & risk not to go through secure transactions or CVV.

Marchitiello

Most grocers will have a pending transaction that is only finalised after you have accepted delivery as often they may have substituted products that they will ask you at delivery if you want to accept it, and this will impact the final charges. 

Other retailers will not operate this way, and will simply either fully charge you at point of dispatch or as soon as the transaction has been processed.

as the previous poster mentioned, it is up to the retailer how they wish to process between the order being placed and delivering the order.