A credit card is a payment instrument that, after the bank evaluates the customer against certain criteria, opens a set limit and allows the customer to borrow up to that limit.
Transactions made on a customer's card are first recorded in the card's current-period transactions. On the statement date set for the account, these transactions are posted and charged to the customer as debt.
Once a transaction is made with a credit card, it is charged to the customer as debt unless something unusual happens (such as the transaction not coming through in clearing, etc.).
So what happens if the card is closed while there is a pending authorization?
Closing a credit card while there is a pending authorization does not cause the authorization to be cancelled (voided). Transactions made during the current period and installments are charged to the card on the statement covering the period in which the card was closed. It helps avoid misunderstandings if bank representatives inform the cardholder of the current debt balance when deactivating the card.
Do all of the installment transactions I made on my card appear on the statement issued after the card is closed?
This varies from bank to bank. Generally, banks do not change their existing process even if the card is closed. The relevant installment amount is posted gradually, to whichever statement period it falls due in. Some banks collect all pending installments at the moment the card is closed and post them all on the next statement.
In short, every transaction we make on our card is a debt we must pay, regardless of the card's status.
