Why does it take 3-10 days to reverse a credit card transaction?

Inspired by an incident which happened to me with Uber Eats just now. When I placed the order my credit card was charged instantly, of course; but when Uber Eats cancelled the order (a story in itself) they inform me it will take 3-10 days to refund the charge. But why? If payments can run instantly, why not refunds?

A suspicious mind might say it’s so that the bank or someone can hold on to my money and earn interest on it for a few days. But of course it’s not really my money, it’s a credit card so it’s the bank’s money they’re lending to me. So what’s the deal?

IME credits from most fully computerized vendors usually happen (nearly) instantly too. But they might not.

I read that more as CYA than float-gaming.

Indeed the pending transaction has now disappeared from my bank account in only a couple of hours, despite them explicitly saying 3-10 days. Which goes to support your theory that it’s CYA.

You’re lucky; we’re still trying to resolve a dispute with Walmart that began August 30th. Our credit union took 10 business days (holidays excluded) to file the complaint and Walmart has 45 business days (holidays excluded - that’s nine weeks!) to counter. No amount of phone calls has helped - no one knows nothing!