All About Pending Payments and What Has Changed from August 2025

From August 1, 2025, the NPCI has introduced new UPI rules that directly affect pending transactions on Paytm, Google Pay and PhonePe.

Users can check balances up to 50 times and view accounts 25 times a day. Status checks for pending payments are limited to 3 attempts with a 90-second gap between each.

These updates aim to reduce delays, prevent failures and make every payment smooth and secure. All changes apply automatically, so users need not take any extra steps.

Quick Overview 

• A pending payment is an authorised, unsettled transaction.
• It could be a result of technical errors, low funds and merchant processing time.
• Most pending payments clear within 1–5 business days.
• Users can manage such transactions through their bank or merchant support.
• The new NPCI rules limit pending payment status checks to 3 attempts per day.

Understanding Pending Payment

A pending payment means a transaction has started but is not yet complete. It means the retailer or merchant has authorised the payment, yet the actual transfer of funds is still in progress. The amount is reflected as deducted from your available balance but not from the total account balance.

Common Causes of a Pending Payment

The 2 prevalent reasons are system or network errors and incorrect transaction details. They often delay payments temporarily until systems or information issues are fixed.

The other key reasons behind a pending payment are as follows:

1. Temporary Authorisation Holds: When you use your card, the merchant asks your bank to confirm your balance. The bank then locks that amount until the payment is final. This hold appears as a pending payment until the transaction clears.
2. Low Account Balance: If your account lacks enough funds, the payment may pause in a pending state. It will only move forward once you add money or the merchant cancels the transaction.
3. Merchant Delays: Some businesses, such as hotels and car rentals, keep funds on hold for an estimated amount. The payment stays pending until they finalise the actual charge after service completion.
4. Security and Fraud Checks: Banks often pause payments that appear suspicious. They review such transactions to ensure safety before releasing the funds.
5. Non-Business Days: Payments made on weekends or public holidays usually process on the next working day.

How Long Does It Take to Process Pending Payments?

The time for a pending payment to clear depends on the payment method and the merchant's process. Most transactions are completed within 1-5 business days.

1. Credit Cards: Usually clear within 3 business days, but may take up to 5.
2. Debit Cards: Often settle faster, within 24 hours, though sometimes up to 3 days.
3. ACH Transfers: Take around 2-3 business days since they process in batches.
4. Cheques: Need the longest time, usually between 2-11 business days. It depends on bank policies.

Checking and Managing Pending Payments

Both merchants and customers share responsibility in handling pending payments. Merchants must ensure a smooth process, while customers should track their accounts closely. Attention from both sides helps prevent errors and delays.

For Merchants

Merchants should maintain transparency about their payment timelines, especially when temporary holds apply. Quick settlement of transactions reduces confusion and improves trust.

Clear transaction labels on statements prevent disputes. Keep communication lines open and update contact details to ensure the payment processor can reach you when needed.

For Customers

Customers should review their accounts frequently to detect any unfamiliar entries. Include pending payments when you plan your daily spending.

If a payment seems unusual, reach out to the merchant for clarity. Give a short window for transactions to complete before filing a dispute. Inform your bank immediately if any suspicious activity appears.

What to Do If You Do Not Recognise a Pending Payment Transaction?

If you notice a pending payment that you do not recognise, act quickly to protect your account. Follow these steps:

1. Check the Details: Review the date, amount and merchant name carefully. Sometimes, the description differs from the actual seller.
2. Contact the Merchant: If the transaction still looks unfamiliar, reach out to the merchant for clarification or confirmation.
3. Inform Your Bank: Call your bank’s helpline right away to block your card or UPI. Send an SMS or email with full transaction details.
4. File a Complaint: Submit a written complaint at your bank branch if the issue remains unresolved.
5. Escalate if Needed: If the refund takes more than 10 working days, contact the RBI Ombudsman.

For UPI frauds, you can report the issue through the NPCI portal or call the cybercrime helpline 1930.

Options to Stop or Cancel Pending Transactions for Top 4 Payment Apps

You usually cannot cancel a pending transaction instantly. Contact the merchant, wait for posting or inform your bank to review and resolve the issue. Here is how the popular payment app works for pending payments:

1. PhonePe: A PhonePe money transfer pending may occur due to technical delays. Banks usually settle such payments within 48 hours. If the transfer fails, you receive a full refund in 3-5 days. Avoid resending the payment until the status updates.
2. Paytm: Orders are confirmed within 30 minutes or cancelled automatically. If funds are deducted, Paytm refunds the amount to your bank once the order fails.
3. PayPal: If a payment on PayPal stays pending, the recipient may not have verified their account. For this, navigate to the 'Activity' section and choose 'Cancel'. PayPal automatically cancels unclaimed payments within 30 days and processes the refund.
4. Google Pay: A Google Pay pending transaction means your bank has not completed the transfer. You cannot cancel it yourself. Banks usually reverse such amounts within 3 business days or mark the payment as failed and the funds are automatically returned.

Final Word

A pending payment is not a cause for worry but a normal part of digital transactions. It simply means the money is on hold until the transfer completes.

With the NPCI’s new UPI rules, payment checks, refunds and status updates now follow a clearer structure. These changes improve reliability, reduce errors and make apps like Paytm, Google Pay and PhonePe more efficient.

Staying aware of these updates helps users manage payments with confidence and ease.