Split Transaction Resulting in Additional Pending Payment for Customer

[SecondChance]

A customer today did a split payment--she paid $20 in cash, and $10.84 via debit.  She came back in and showed that her bank is showing both the $10.84 and $20 as pending on the debit card.  However, Square is just showing the $10.84 as going on her card and the $20 as cash.  

Has anyone had a similar issue?  Was the $20 pending with the bank because it was a split transaction, and will go away?

[ryanwanner · Accepted solution]

Aahhhh, the joys of instant access to the consumer bank accounts......

Every now and then, credit card providers will do what's called a "pre-auth" on a customer account. I'm betting this is what happened here. Square reached out to your customer's bank to verify there was enough to cover the $20, then submitted the $10.84. The customer's bank for whatever reason saw both the pre-auth and the actual amount as two separate transactions and recorded it in your customer's account.

Back in the good ol' days where we didn't have access to our account immediately, these type of transactions were cleaned up before we even knew something happened. Nowadays, it leads to people thinking we're double-charging them. UGH.

The $20 transaction will drop off your customer's account by the close of the next banker's business day. What I tell people when that happens to me is to check their account tomorrow: if it is still on there, I will reach out to Square directly for them to get to the bottom of this. Haven't had to call Square yet. 🙂

[SecondChance]

This is super helpful--thank you so much!!

[VaughnS23]

How can I transfer money into paypal account without depositing from bank account

[JustinC]

Thanks for posting in the Community. @VaughnS23 

I'd like to help but not sure what you're asking. Is your question related to the topic of this thread?

[Laidlofr1]

How long does it take for pending transactions on the Square Debit card to fall off and the money be credited back to my account? It has been a week and the transaction is still showing as pending. It is a large amount and I need my money back sooner rather than later. Chat function was no help. Who did I contact? What is the next step?

[TheRealChipA]

@Laidlofr1 Interestingly, I did some research to see if Square mentioned this anywhere in their help articles.  I found lots of information, but not on this subject.  So, in absence of that, I’ll have to revert to the industry standard — pre-authorizations take anywhere from 3-5 business days to be removed.  Some banks can take longer, though.  There seems to be no industry standard, which is weird but unsurprising.  Anyway, try calling Square’s customer success team at (855) 700-6000.  You should get a human who can help you with a better answer than mine.

Best of luck,

[Laidlofr1]

Thank you! You are absolutely right 3-5 days is standard. I bank with USAA & Navy Federal and most times the authorization falls off immediately or within 1-2 days. I have never seen an institution take a week. Today makes 1 week. Budget rental car swiped the card but put the wrong amount. Canceled the transaction and I decided after that to use my Captial One Credit card to get points. But the canceled transaction had already debited my account. Instantly. Budget canceled it instantly and that shows in the transaction log; however, the money they authorized still shows as pending. So $575.00 was the amount. I swiped. Clerk says sorry it is only $500.00. They canceled the $575.00 out but it had already been debited instantly from the Square card. I switch cards.  So a week later the transaction history shows a canceled $575.00 charge and a pending $575.00 charge. And indeed my money in my balance with Square attached to the card is $575.00 short, the pending transaction. I’ve already rented and returned the car last week. Capital One has already refunded the deposit amount and charged the rental. Case closed. But not Square. Thanks for your insight!! I will call them tomorrow. I truly learned a valuable lesson. Frustrated. 

[TheRealChipA]

Ugh. I understand your frustration.  Hopefully they can help at customer service tomorrow.  When you talk to them, it might be worth suggesting that a bullet point on the Square Card FAQs indicating standard hold times would be a good thing for them to add.  Just a thought!

I wish you the best.