What is 'Credit Card Posting'

Credit card posting occurs when a cardholder transaction has been settled and recorded with a post date. A post date is created for all types of credit card transactions including purchases, payments, refunds and chargebacks.

BREAKING DOWN 'Credit Card Posting'

Credit card posting is part of the clearing and settlement process that occurs when a cardholder uses their card for a transaction. Other types of transactions may also occur beyond just standard purchases that will also be reported and itemized on a cardholder’s account. Non-standard transactions may include 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 time of transaction. Transactions are reported as pending until they are settled at which time they will record a post date. In some cases the transaction date and the post date may be the same however usually the post date is often a day or more after the transaction date.

The funds associated with a specific transaction will be placed on a hold when the transaction occurs. The hold affects the cardholder’s available credit which decreases to reflect the amount of the transaction. Funds will be on hold from the time of the transaction to the post date when they are fully confirmed. Transactions can be voided while in the pending phase which would keep them from proceeding to posted. Once a transaction is posted it can only be reversed by refund or chargeback.

Processing a Transaction

There are several parties involved in the processing of any credit card transaction. The three main entities include an acquiring bank, issuing bank and network processor. When a purchase is made with a merchant their acquiring bank will work to facilitate the transaction. The acquiring bank will contact the processing network associated with the card. The processor then contacts the issuing bank for verification and authorization. Once authorized the processor sends the confirmation to the merchant bank who notifies the merchant and begins the deposit settlement process in the merchant’s account.

Once the transaction has been confirmed by the issuing bank and merchant bank it is considered authorized and will post as pending. Generally a transaction will be pending for one to two days before it is posted to an account. Settlement with the settlement bank usually initiates the final posting.

Communication on a refund or chargeback can vary from the standard transaction process which occurs with a basic transaction. This is because either the issuing bank or merchant may take the lead on facilitating the communication. If a merchant initiates a refund for a customer, the transaction cycle is the same however the communication works to refund a payment rather than add it as a charge. If a chargeback is initiated by the issuing bank, then the issuing bank works to facilitate the communication and may even take on the liability to provide a chargeback to the customer while researching their claim. This type of chargeback is often initiated by the issuing bank for a fraudulent charge.

Timing Payments

The time that elapses between a transaction and post date is usually not a major concern for a cardholder unless the transaction is for a credit card payment. With a credit card payment a cardholder will need to know the exact date that the payment will post on in order to ensure that they avoid any late fees. Credit card companies provide clear disclosure on the credit card posting date for payments. Generally most credit card companies have a specific time by which payments must be made each day for same day posting. This is usually standard for business days however it may differ for weekends and holidays. Discover, for example, requires cardholders to submit payments by 5:00 pm Eastern Standard Time for the payment to post that day.

RELATED TERMS
  1. Chargeback Period

    A chargeback period is the time frame during which a credit card ...
  2. Credit Card Authentication

    Credit card authentication is the process of confirming a customer’s ...
  3. Billing Statement

    A billing statement is a monthly report that credit card companies ...
  4. New Balance

    The new balance is the sum of the previous balance, payments, ...
  5. Transaction Date

    A transaction date in the date upon which a trade takes place ...
  6. Credit Card

    Issued by a financial company giving the holder an option to ...
Related Articles
  1. Tech

    Bitcoin Transactions Vs. Credit Card Transactions

    We provide an overview of the differences between bitcoin and credit card transactions, and the advantages of using one over the other.
  2. Tech

    How Much Cheaper are Bitcoin Fees than Credit Card Fees?

    Bitcoin transaction fees are starting to rise as the network gets backlogged due to more usage, but are still much lower than typical credit card fees.
  3. Personal Finance

    Which Are The Best Credit Cards To Take To China? (DFS)

    Credit cards are now much more widely accepted in China – and one issuer leads the pack, due to its deal with China UnionPay, the Chinese bankcard network.
  4. Personal Finance

    Univision MasterCard Prepaid Card: What You Need to Know (MGI, WU)

    The Univision MasterCard prepaid card markets itself as a safe alternative to cash, but competing cards may offer better value for consumers.
  5. Personal Finance

    10 Considerations For Using Your Credit Card Abroad

    Credit cards can be the best item you pack when traveling, just make sure that you are taking the right card that suits your needs.
  6. Personal Finance

    What happens when your credit card expires?

    Find out why it's a good idea to change and update your credit card once in a while. Learn about other cards that may better suit your needs.
  7. Personal Finance

    3 New Types Of Credit Cards To Look For

    These three types of credit cards are becoming popular with customers looking to pay less fees and build up their credit scores.
  8. Personal Finance

    Credit Card Review: Blue Cash Everyday Amex (AXP, KSS)

    Read about the Blue Cash Everyday Amex card, and learn how it saves cardholders money on groceries, gas and other household purchases throughout the year.
RELATED FAQS
  1. Can you pay off your Best Buy credit card in store?

    Learn how you can pay your BestBuy credit card in stores using cash or check. You can also pay by mail, online or over the ... Read Answer >>
  2. How is the minimum payment on a credit card calculated?

    Even when minimum payments are low, consumers should still aim to pay off credit card balances every month. Read Answer >>
  3. What do T+1, T+2 and T+3 mean?

    For security transactions, T+1, T+2, and T+3 refer to settlement dates which occur on a transaction date plus one, two and ... Read Answer >>
Trading Center