It takes time to transfer money – and this time exists in both directions.
When you pay for something, a **hold** is placed on your account for that amount. This way, the retailer is ensured you have the funds to pay for the product, and your bank ensures you don’t spend more money than you have while the transactions are clearing. In a few days when the transaction clears, the hold is replaced with the actual charge – you just don’t notice it.
The same process happens in reverse when a refund is issued. The retailer has a hold placed on their account, and in a few days when the refund processes, that hold is replaced with the executed refund.
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