In a notorious 1997 chess tournament, IBM’s chess-playing computer, Deep Blue, challenged and finally defeated grandmaster Garry Kasparov. An unnamed IBM enthusiast is credited with the first known published reference to the Big Blue nickname, which appeared in the June 8, 1981, edition of Businessweek magazine. Other speculators have linked IBM’s Big Blue moniker to the company’s logo and old dress code. Another speculation has to do with the company’s long history with blue-chip stocks. If I take the date of the paper receipt, this might be different to the date on my bank statement.
- Whatever the origin, the moniker was affectionately embraced by IBM.
- In the meantime, you may see a pending charge on your credit card account right away.
- The posting date indicates the time when the transaction was entered into the card issuer’s system.
- Specifically, since your payment history is the most important factor that makes up your FICO score at 35%, paying your bill after this date could result in damage to your credit.
- But in case of Moving average you can use the option for Transaction time.
As a cardholder and responsible steward of credit, you’ll also need to keep track of an array of important credit card debts, some more important than others. There are other accounting rules that require you to not record your income until a certain event happens after you receive the actual income. You can see this in company financial reports where they discuss the timing differences between receiving funds and recognizing income. In that case, you’ll want to follow the law and record the later date. The transaction date is the date when you make a purchase or a cash withdrawal. The posting date is when the transaction is received to your account.
Up Next: IBM – The Company Known as Big Blue
Put another way, credit card post date is when your credit issuer has processed your transaction and it is recorded on your credit card account. Your post date can be the same day as the day that you make the transaction, but it can vary. For credit and debit cards, the posted date is the specific day, month, and year on which a card issuer posts a transaction and adds it to the account balance of the cardholder.
- Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
- Credit card lenders are required by federal law to tell you 45 days in advance if they plan to raise your interest rate or fees, which they can’t do during the first year.
- Here are the most important dates to know and understand, and what each one means.
- That’s because sometimes the merchant, card processors, and credit card company sorts out their transactions at the end of the day.
That date is known as the settlement date and typically occurs a few days after the transaction date. In addition, your credit card issuer may credit a payment to your account before it has been posted, but your available credit may not increase until after the payment is posted. You don’t typically receive a grace period for balance transfers or cash advances. Also, which date should I use when transferring money from one bank account to another? The problem being that the two banks processed the transaction on different days. Between the transaction date and the post date, the card issuer will put a hold on the cardholder’s credit line for that sum of money.
Why is there a ‘Purchase order year-end process’ in the General Ledger ‘Period close’ tasks in D365FO (or AX)?
A transaction date is a date upon which a trade takes place for a security or other financial instrument. The transaction date represents the time at which ownership officially transfers. In banking, the date a transaction appears in the account is also referred to as the transaction date, although it is not necessarily the date on which the bank clears the transaction and deposits or withdraws funds. So I’m having an issue with my Wells Fargo credit card and charges being carried over past the posted date. Often, transaction dates are listed in chronological order on a monthly statement. When you select the option ‘Posting date’ in the report setup, the data in the report will be presented based on the used posting dates.
Posted date vs transaction date
Pending transactions also won’t affect your outstanding credit card balance. The credit card post date can, however, affect the amount of interest you pay, particularly when your card issuer uses your daily balance to calculate your finance charge. You may not owe interest on new purchases if you pay in full before the grace period ends. The issuing bank will normally place funds on hold once a transaction has been approved. This will reduce the available credit balance by the purchase amount for a credit card transaction.
Annual Fee Due Dates
The credit line will still be reduced to reflect that charge until the cardholder pays their balance off. Credit card lenders are required by federal law to tell you 45 days in advance if they plan to raise your interest rate or fees, which they can’t do during the first year. You must receive your credit card bill at least 21 days before the payment due date, too. The balance transfer or other introductory offer rate must stay in effect for at least six months, unless you’re more than 60 days late in paying your bill.
If the transaction is still in the pending phase, you can try to ask the merchant to cancel it. However, you need to act quickly, as the interval between the time a transaction occurs and when it is posted can be brief. After a transaction posts to your account, you can return the merchandise and ask the merchant for a refund. If you never received the product or service, or if it was purpose of corporate bylaws unsatisfactory, you can request a chargeback with your card issuer. Electronic payments often require communication with multiple entities, which can affect a transaction’s post date. Banks have systems in place that help an account holder to manage the balance on their account during the floating time period between when the transaction occurs and when it is posted or settled.
Especially the ending date is important to be able to present the data related to an ‘as of’ date. Your bank is maintaining different states for transactions, and changing the state depending on real-world events and the passage of time. IBM (International Business Machines) is the company known as Big Blue. The name may have come from the deep blue color of the company’s logo or the blue tint of its early computer displays. Big Blue became a moniker for IBM in the popular and financial press in the early 1980s. However, it is widely considered to relate to the blue color of the machines’ casings.
Banks have procedures in place to assist account holders in managing their account balances between the time when a transaction occurs and when it is posted or settled. If you have concerns about a purchase—for example, you were charged the wrong amount—you have a small window of time to have the business void the transaction and correct it. Otherwise, you’ll have to wait until it’s posted to your account to dispute it with your credit card issuer.
Your credit card issuer receives some information about the purchase right away but may still have to wait for the merchant to submit your order for payment. In the meantime, you may see a pending charge on your credit card account right away. Once the transaction is sent to the credit card issuer for payment to the merchant, the transaction posts to your account.
For example, some balance transfer credit cards waive balance transfer fees for the first 60 days after account opening. At 60 days, you’ll have to pay a balance transfer fee if you choose to transfer a balance. You might also get an introductory offer for 0% APR for any length of time, say 15 months. Once those 15 months are up, your credit card balance will begin accruing interest at the regular variable rate. Credit card payments may be posted the same or next day, depending on the timing of your payment and your card issuer’s policies.