The account balance that includes pending transactions is the "available balance."
Explanation of Balances
- The available balance accounts for pending transactions, meaning it reflects the current balance adjusted for any transactions that have been authorized but not yet fully processed. This balance gives a more accurate picture of the money that can actually be spent or withdrawn as it deducts pending debits and adds pending credits to the account balance.
- The current balance or "posted balance" typically does not include pending transactions. It only shows transactions that have been fully processed and settled in the account.
How Pending Transactions Affect Balances
- Pending transactions are those that have been authorized but not fully processed by the bank. For example, a debit card purchase that has been approved but not yet finalized by the merchant will show as pending.
- Banks update the available balance to reflect these pending transactions so users can see the real amount accessible despite the pending status.
- The available balance may be lower than the current balance due to pending debits or higher if there are pending deposits in process.
In summary, the available balance is the account balance that includes pending transactions, giving the most precise picture of available funds.
