PayWave processing times

Why do payWave transactions take ages to show up on my transaction history?
I was put into overdraft last month and they said it was because my payWave transactions hadn’t processed. I thought it should just decline if the money isn’t there but this lady said because of the way I pay it can still make me overdrawn. I don’t get it



Some transactions, like the paywave ones, don’t show up immediately because they can go through what is effectively a 2 stage process:

• The 1st stage is the authorisation stage – which is done at the time of purchase. The bank checks if you have sufficient funds for the transaction to be processed – and if so, the transaction gets approved and the bank puts a hold on the funds. The transaction won’t appear in your Transaction History at this stage. We call these “Pending” Transactions. In YouMoney (but not the mobile app) the Available Balance takes into account funds that have a hold put on them.

• The 2nd stage is when the merchant that the transaction was done through “banks” the transaction, and this is when it shows up in your Transaction History. Not all merchants bank their transactions daily, and this is why you might see transactions appear in your Transaction History days after you physically made them. Not all authorisations turn into a banked transaction, though. Some, such as the holds that hotels apply when a customer checks in (to cover minibar and any other incidentals), just drop off once they are no longer valid.

Currently for transactional accounts we only show the “banked” transactions – but we are hoping that by about mid next year we will also be able to display Pending transactions too for these accounts.

You can find more info on Pending Transactions

When an account has pending transactions on it, we do take these into account when authorising later transactions though – so to establish why your account went overdrawn we’d need to look into this a bit more for you. Happy to do this for you if you like, just PM me your access number.




You must ask over draft fees be refunded, as this is not your fault.
You didnot authorise the payment to be taken 3 years later, you authorised it for that instant.
This is an operational risk to the bank, but as they pass on the risk to you and charge an overdraft, they have made it into an opportunity rather than a risk.

This is not an intentional thing on behalf of the banks but an unfortunate side effect of the way the credit card system was developed.

The flipside is pending transactions are not counted towards the account statement full payment amount. If you buy something just before the end of the period and it does not fully post before the end of the period, you don’t have to pay for it until the next statement.

This is how credit cards are designed to work. Unfortunately the logic doesn’t translate so well to Visa debit.

I have noticed some transactions even disappear (with a corresponding increase in available funds) before finally settling. If a purchase was made in this timeframe the bank would allow it but when the transaction settled, an account would go overdrawn if there were not sufficient funds available.

This does present a risk of sorts to the bank because card payments can not be dishonored.

What to do? The obvious answer is keep a track of your expenditure and don’t run so close to the edge. Granted, this is difficult for some people. I have never seen this issue come up with eftpos transactions. I suggest this is a good alternative to Paywave.

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I totally disagree with your logic and COBIT principles would support this. I would say NZ banking system is kept naive for a purpose of making money for the bank.