What is Provision?
Anyone who uses a credit card has probably come across the word provision while examining their account activities. But if you haven't come across this word before or don't know what it means, we've shared all the details you need to know about down-provisioning.
What is Provision?
A pre-approval process takes place after a purchase you make with your credit card. This pre-approval process is called provisioning. After this pre-approval process, your bank approves your transaction and the expenditure is reflected on your card transactions.
What is Pending Provision?
The pending provision is the period between the completion of the bank's approval process after the shopping you have paid with your credit card. Although this period may vary from bank to bank, the approval process usually takes place within 24 hours. If there is no problem, your bank approves the spending you made on your credit card and reflects it on your credit card statement.
What is Provision Cancellation?
After the payment is withdrawn from your credit card, you can cancel the provisioned transaction by contacting your bank. However, this is not an easy process and you must have an important reason to cancel the provision.
For example, if the transaction made on your credit card was not made by you, you can cancel the provision.
Why Provision is Applied in Payment Systems?
Provision is a method used to ensure the security of credit card users. In this way, the provision system that keeps both the buyer and the seller safe, ensures that you remain safe if the transaction was not made by you.
Provision also secures the other side of the transaction by checking if the shopper has enough credit on their credit card. In this way, the sellers do not suffer.
In summary, we can say that provision plays a vital role to avoid such problems.
What are the Advantages of Provision Application?
The most important advantage of provision is , of course, to provide security. For example, let's say you dropped your credit card. Your bank will likely send you an SMS when the cardholder makes a payment via contactless transaction. When you see this SMS, you need to contact your bank immediately, as you did not perform the transaction. In this way, you can cancel a pending transaction belonging to a purchase made without your knowledge by calling your bank.
When Does the Transaction in Provision Appear in Expenditures?
The answer to this question differs from bank to bank, but the purchases you make with your credit card are removed from the provision in an average of 30 minutes and appear in the expenditures section of your credit card. Of course, this period is not always this short. System failures or problems arising from different situations may cause the duration to be extended. It may take 24 hours or even 2 days for the transaction in the provision to appear in the expenditures.
