Credit Card Posting

What Is Credit Card Posting?

Credit card posting happens when a cardholder transaction has been settled and recorded with a post date, which is made for a wide range of credit card transactions including purchases, payments, refunds, and chargebacks.

Understanding Credit Card Posting

Credit card posting is part of the clearing and settlement process that happens when a cardholder involves their card for a transaction. Different types of transactions may likewise happen past just standard purchases that will likewise be reported and itemized on a cardholder's account. Non-standard transactions might incorporate refunds or chargebacks.

Generally, all transactions will have a transaction date and a post date. The transaction date is recorded on a cardholder's account at the hour of the transaction. Transactions are reported as pending until they are settled when they will record a post date.

At times, the transaction date and the post date might be the same anyway normally the post date is in many cases a day or more after the transaction date.

The funds associated with a specific transaction will be requires to briefly wait when the transaction happens. The hold influences the cardholder's accessible credit which diminishes to mirror the amount of the transaction. Funds will be on hold from the hour of the transaction to the post date when they are completely confirmed.

Transactions can be voided while in the pending phase which would keep them from continuing to posted. When a transaction is posted it must be switched by refund or chargeback.

Processing a Transaction

There are several parties associated with the processing of any credit card transaction. The three fundamental substances incorporate a acquiring bank, giving bank, and network processor. At the point when a purchase is made with a merchant their securing bank will attempt to work with the transaction. The obtaining bank will contact the processing network associated with the card.

The processor then, at that point, contacts the responsible bank for verification and authorization. When authorized the processor sends the confirmation to the merchant bank who advises the merchant and starts the deposit settlement process in the merchant's account.

When the transaction has been confirmed by the responsible bank and merchant bank it is viewed as authorized and will post as pending.

Transactions, Refunds, and Chargebacks

Generally, a transaction will be pending for one to two days before it is posted to an account. Settlement with the settlement bank as a rule starts the last posting.

Communication on a refund or chargeback can shift from the standard transaction process which happens with an essential transaction. This is on the grounds that either the responsible bank or merchant might start to lead the pack on facilitating the communication.

In the event that a merchant starts a refund for a customer, the transaction cycle is the same anyway the communication attempts to refund a payment as opposed to add it as a charge.

On the off chance that a chargeback is initiated by the responsible bank, the responsible bank attempts to work with the communication and may even interpretation of the liability to give a chargeback to the customer while investigating their claim. This type of chargeback is in many cases initiated by the responsible bank for a fraudulent charge.

Timing Payments

The time that slips by between a transaction and post date is normally not a major concern for a cardholder except if the transaction is for a credit card payment. With a credit card payment, a cardholder should know the specific date that the payment will post on to guarantee that they stay away from any late fees.

Credit card companies give clear disclosure on the credit card posting date for payments. Generally, most credit card companies make some specific memories by which payments must be made every day for same-day posting.

This is generally standard for business days anyway it might contrast for ends of the week and holidays. Discover, for instance, expects cardholders to submit payments by 5:00 pm Eastern Standard Time for the payment to post that day.

Features

• Credit card posting is part of the settlement interaction that happens when a cardholder pays for a transaction with their card.
• While making credit card payments, a credit cardholder needs to know the specific post date that the amount to stay away from any late fees.
• The time that slips by between a transaction and post date is normally not a critical issue for a cardholder except if its a credit card payment.
• Credit card posting happens when a cardholder transaction is recorded with a post date.