# A payment moves through different states.

Canonical page: https://finanzer.ai/learn/understanding-balances

> A pending authorisation, a settled transaction and a refund affect the account at different points. Read the status before treating money as available.

A pending authorisation, a settled transaction and a refund affect the account at different points. Read the status before treating money as available.

## Follow the transaction, not just the balance.

These are account concepts. Product-specific rules determine when funds become available.

### Authorisation

A pending card payment may reserve funds before the merchant completes the transaction.

### Settlement

The completed payment is recorded as a posted transaction. Its relationship to the reservation must be reconciled.

### Reversal or refund

A released authorisation differs from a refund of a settled payment. Check the status of the original transaction.

## Available credit is borrowing capacity.

It is separate from money held in an account. Spending against a credit facility creates a repayment obligation under its agreement.

## Common questions

### Can a pending payment change what I can spend?

A payment authorisation can reserve funds or credit before it is posted. The applicable account or facility terms determine the effect.

### Is available credit my own money?

No. It is capacity to borrow within the agreed facility. Using it creates an obligation to repay.

## Read the terms behind the balance.

Ask how authorisations, settlement and repayment will be recorded in the proposed product.

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