Provisional Credit
A provisional credit is a temporary credit that a bank or card issuer adds to an account while it investigates a disputed transaction, such as a billing error or an unauthorized charge. It restores the disputed amount so the account holder is not out of pocket during the investigation. If the dispute is upheld, the credit becomes permanent. If the dispute is denied, the issuer reverses the credit.
Last updated: November 2026
How does provisional credit work?
- Dispute: the account holder reports a transaction as an error or as unauthorized.
- Temporary credit: the bank or issuer credits the disputed amount back while it investigates.
- Investigation: the issuer reviews the claim and may ask the merchant for evidence.
- Decision: the credit is made permanent, or it is reversed and the original charge stands.
In the US, consumer debit card and bank transfer disputes fall under Regulation E. If the bank needs more than 10 business days to investigate, it generally has to provide provisional credit and can then take up to 45 days. Consumer credit card disputes fall under separate billing error rules, where the issuer has up to two billing cycles to resolve the dispute and cannot collect the disputed amount in the meantime.
What is a provisional credit reversal?
A reversal happens when the issuer decides the original transaction was valid. The temporary credit is taken back and the charge returns to the account. Issuers normally send notice of the decision and the date of the reversal.
Provisional credit on business and ad spend cards
The consumer rules above do not generally apply to business accounts. Whether a business card gets provisional credit, and how fast, depends on the card agreement and the card network's dispute rules.
Disputes over ad platform charges need extra care. A chargeback filed against an ad platform can lead the platform to restrict the ad account, so most advertisers raise a billing problem with the platform first. Good card controls and regular ad spend reconciliation catch problems early, and ad spend fraud prevention reduces the number of disputes in the first place.
How Opal limits dispute exposure
Opal gives agencies and brands unlimited free virtual cards, with a dedicated card and spending limit for each client or ad platform. A limit caps what an unauthorized charge can reach, and one card can be replaced without touching the others. See how Opal works for agencies.
Frequently asked questions
Not at first. Provisional credit is temporary while the dispute is investigated. It becomes permanent if the issuer rules in the account holder's favor, and it is reversed if the issuer finds the original transaction was valid.
For US consumer debit card and bank transfer disputes, the bank generally has to provide provisional credit if its investigation runs past 10 business days. Timing for credit cards and business accounts depends on the issuer and the account agreement.
Yes. If the investigation concludes that the transaction was authorized or correct, the issuer reverses the provisional credit and the original charge is reinstated. The issuer should notify the account holder before or when it does this.
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