So Starling is being an absolute God-send when it comes to seeing transactions reflected immediately in my account balance; but how exactly does it deal with pending transactions?
Let me give you an overview of something I’m going through with my legacy bank at the moment (with some fabricated figures) - and see if Starling would handle things any differently:
On Thursday, I placed an order with an online retailer for £540 - this immediately shows as a pending transaction and my available balance is £460
I cancelled the order 30 minutes later due to an issue with the item I ordered - my available balance remains at £460
I want to re-place the order ASAP so I ask the retailer to release the money - they say that they haven’t physically taken it and it’s my bank that is holding it (a process I am familiar with)
I ask the bank to release the funds who process the request but say it can take 24 hours - my balance is back up to £1000 after this
So my question is this: is the whole ‘waiting 24 hours’ a legacy bank ‘thing’ and something that could be done immediately using Starling’s house-built full stack bank, or is it just industry standard?
TL;DR: Can Starling release the funds from a pending transaction (when the money won’t be taken) faster than my legacy bank?