What is a pending refund?

When a merchant processes a refund for a purchase made using a credit or debit card (selecting credit, contactless payment or online/phone purchase) the bank, upon receiving the refund request, may display the refund as pending. This authorised amount is held and may appear as a pending refund for up to 7 days while the merchant finalises the refund. When fully finalised and processed (settled) by the merchant, the funds are made available to you.