What Is Credit Card Post Date?

The post date on a credit card account can affect the interest charged in a particular statement period. That’s because the card company recognizes that balances are paid off sooner. The credit card post date is the date a transaction is applied to your account balance. In other words, it’s when the card personal financial statement template issuer has processed the transaction and recorded it on your account. Posting is part of the clearing and settlement process in credit card transactions. Settlement refers to the stage when the merchant gets their payment from the card issuer, while clearing involves all of the steps leading up to that.

• However, U.S. government securities have a regular way settlement of T+1.
• The posting date indicates the time when the transaction was entered into the card issuer’s system.
• For credit and debit cards, the posted date is the specific day, month, and year on which a card issuer posts a transaction and adds it to the account balance of the cardholder.
• After all, missing your due date could result in a late fee as well as your being charged a penalty APR.
• The balance transfer or other introductory offer rate must stay in effect for at least six months, unless you’re more than 60 days late in paying your bill.

The account holder’s available funds will be reduced as a result of a debit card transaction. The account holder will often see the transaction displayed as a “pending transaction” for both debit and credit card accounts. The post date will be used by most issuing banks as the last date on an account holder’s monthly statement. Finally, a few days later, your credit card issuer finishes processing the transaction and posts it to your account. It could take several days for online purchases to post to your account. Some transactions won’t post to your account until the item you purchased is shipped.You won’t accrue interest on transactions that are pending and haven’t been posted yet.

Credit card posting date vs transaction date

If you never received the product or service, or if it was unsatisfactory, you can request a chargeback with your card issuer. Electronic payments often require communication with multiple entities, which can affect a transaction’s post date. Banks have systems in place that help an account holder to manage the balance on their account during the floating time period between when the transaction occurs and when it is posted or settled. Your credit card payment due date is the most important date to remember, because you’ll face consequences if you forget.

Each credit card issuer has different rules about when a payment will be posted based on when it is received. For credit and debit cards, the posted date is the specific day, month, and year on which a card issuer posts a transaction and adds it to the account balance of the cardholder. For a bank, it is the day on which money is taken out of or deposited into a bank account. The posted date, also known as the settlement date, can be the same day as the transaction date.

• The status of the document changes during the workflow and available statuses depend on the document type, user role, and process phase.
• These fees are automatically charged to your account and may be based on cardholder benefits you receive, which could include travel perks, annual credits, insurance products and more.
• Banks have systems in place that help an account holder to manage the balance on their account during the floating time period between when the transaction occurs and when it is posted or settled.
• Similarly, bank A will have the transaction marked as “pending” initially.
• The clock often starts when your application is approved, not when you actually receive your card.

You don’t typically receive a grace period for balance transfers or cash advances. The simplification comes from assuming transactions take no time to transfer from one account to another, and are instantly available after that. Your book-keeping software probably books using this simpler basis for your personal finances. Regular way transactions settle on the second business day after the trade date, which is referred to as T+2. Most securities, including stocks and corporate bonds, settle this way.

The credit card billing cycle is the length of time transactions are counted toward a single monthly bill. This period typically ranges from 28 to 31 days, and it can depend on the issuer. A journal entry that is used for posting accrued expense or income in one accounting period and that will be reversed in a future accounting period.

Annual Fee Due Dates

Big Blue became a moniker for IBM in the popular and financial press in the early 1980s. However, it is widely considered to relate to the blue color of the machines’ casings. Whatever the origin, the moniker was affectionately embraced by IBM.

Which date to record for a transaction?

The transaction date is the date when you make a purchase or a cash withdrawal. The posting date is when the transaction is received to your account. Similarly, bank A will have the transaction marked as “pending” initially. Bank B won’t have a corresponding transaction at all, until later; they’ll have it “pending” too, until they confirm the transfer. Then (probably at different times from each other) the banks will each mark the corresponding transactions “cleared”. A transaction date is a date upon which a trade takes place for a security or other financial instrument.

accrual journal

The day that a particular transaction is posted is known as the post date or settlement date. Once a transaction has been authorized, the issuing bank will typically place the funds on hold. For a credit card transaction, this will reduce the available credit balance by the purchase amount. For a debit card transaction, the account holder will see a reduction in their available funds. The issuing bank will normally place funds on hold once a transaction has been approved. This will reduce the available credit balance by the purchase amount for a credit card transaction.

According to the large credit card issuer Capitol One, “your online or mobile banking app may not include pending transactions in the current balance, so it might not match your available balance.” Unlike payments and purchases, which post in a few days, a balance transfer can take several weeks to post to your account. Because of this, it’s wise to keep making payments on the pending transaction until the date the transfer is completed and posted. For instance, if you purchase groceries on October 8, you’ll see a pending or pre-authorized charge in your online transaction history right away. The credit card issuer has already received some information about the transaction for authorization, but is still waiting for the merchant to submit the transaction for payment.

Charges that have been approved by the issuer may show up right away as “pending,” but not be included in your balance. On the other hand, some credit card issuers do show your balance adjusted for pending transactions. Either way, if the transaction doesn’t have a post date, it’s still processing. After your current credit card statement closing date takes place, you’ll have what is known as a “grace period” to pay your credit card balance in full without any interest charges. For example, you may have 25 days from the statement date, depending on your card issuer.

Credit card posting is the point at which a particular transaction is “posted” to a cardholder’s account and money is either added to or subtracted from the account balance. Posting occurs once a transaction has been fully processed, which may be immediately following the transaction or after some brief interval of time. Posting is part of all types of credit card transactions, including purchases, payments, refunds, and chargebacks.