When a transaction is made with a debit card using contactless payments (e.g, MasterCard® PayPass™, Visa payWave and Westpac PayTag®) or overseas by selecting the credit button on a terminal, the transaction is processed via the MasterCard or VISA network. Before the transaction can be processed, it needs to be authorised by MasterCard or VISA. Here’s what happens:

• A transaction is made and while it’s being authorised it will show in your account, along with the transaction amount and the current day’s date, as either “Money Out (ELECTRONIC)” or “Money Out (EFTPOS TRANSACTION).”

• The benefit of this is that while the transaction is being authorised, you know your true account balance, which should help prevent you from spending money you don’t actually have.

• This “hold” will stay in place for five working days, with the date being updated each day.

• Within this five day period, the merchant (where the transaction was made) will process their banking, at which point the hold will be replaced with the actual transaction.

It is rare, but still possible, that the merchant may not process their banking within the five working days of your transaction. In this case, the “hold” will be released and the money will look like it is available to draw on. Once the merchant does process their banking, the transaction will appear in your account.