Nationwide Building Society has issued a reminder to its customers about a standard banking rule that can see money tied up for a week. The clarification came after a frustrated account holder took to social media to query why a refund was taking so long to clear.
Customer Frustration Over Delayed Refund
The issue was raised publicly on X, formerly known as Twitter, when one Nationwide customer detailed their experience. They explained that a payment was taken from their account on January 4, but they cancelled the order the very next day.
Despite the swift cancellation, the funds remained unavailable. "Still pending on my account," the customer wrote. "Why should the consumer lose the said amount for over a week for no goods?"
Nationwide's Explanation of the 'Pending' Rule
Responding directly on the platform, a Nationwide spokesperson provided a detailed explanation. They stated that a card payment will typically show as pending for seven days. This period allows time for the merchant's clearing file to be received and matched with the pending transaction.
The spokesperson emphasised that this is a standard industry timeframe. They added: "The refund will be returned to the account as soon as it is received from the merchant. Merchants' typical time frame quoted is five to seven days."
How Pending Transactions Work
On its official website, Nationwide elaborates further on the process. When you use a debit card, it immediately reduces your available balance. Conversely, a credit card payment increases your available credit. This action reserves the money, making it ready for the company to collect.
The building society notes a crucial safety net: If a pending transaction hasn't been taken by the company after 7 days, the reservation is lifted. The money becomes available again, and the pending note disappears from your account.
However, Nationwide also offers an important warning for current account holders. They advise keeping enough funds to cover the payment, as some transactions can take up to 180 days to finally process. "So, the money could still be taken at a later date," the guidance states.
For customers who believe a charge is mistaken or a pending payment is incorrect, the bank confirms it can offer assistance to resolve the issue.
