Provisional credits are not always permanent and can later be reversed. For example, if you prematurely spend your provisional credit, you may find a negative account balance should the credit be revoked. Spending provisional credit may be necessary at times, but it can be risky. What happens when you spend a provisional credit? Your account could exceed its credit limit if the charge is deemed legitimate and the provisional credit is withdrawn. You can spend provisional credit just like any other money in your credit card account. Because of this, people may prefer to contact the merchant directly before notifying their bank in the event of a dispute. That said, you can't know for sure which decision your bank will make or how long the investigation might take. Your bank will make the temporary credit permanent if it confirms that the charge was unauthorized or a mistake. How long does provisional credit last?Ī provisional credit should be available to you throughout the investigation extension. Sometimes, these investigations are complex, and the bank needs extra time to resolve the charge. Typically, your bank will correspond with the merchant's bank, and if deemed appropriate, an amount equal to the disputed charge will be applied to your account as a temporary credit.Ī provisional credit is not always applied right away or with every investigation. Typically, this credit is equivalent to the total charge in question. In both cases, the bank may apply a provisional credit to your account.
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