Card payment authorization
Understand the end-to-end lifecycle of a card payment, including both financial and non-financial transactions. This guide provides a high-level overview of how card activity is processed, from authorization to final settlement.
Authorizations
Online messages received by the platform as part of processing transactions for cardholder accounts issued in the system
There are two(2) types of transaction authorizations:
Non-financial Transactions
Non-financial transactions are a type of transaction that originates from the card network/payment institutions or merchants. This is a part of the transaction processing lifecycle, which does not have any impact on the customer balances.
Financial Transactions
Financial transactions are a type of transaction initiated when a cardholder tries to execute and confirm a payment with a merchant or any other payment institution. These transactions, when authorized, will have an impact on the customer balances.
Non-financial Transactions Types
These are the current non-financial transactions that will be exposed by the platform to you as a platform consumer
Account Verification
This message is used to verify the status of an account, including whether it is active, inactive, or has any restrictions. It can be initiated by merchants during a transaction or by financial institutions for administrative purposes.
Financial Transactions Types
As part of card transactions, the system will receive the following types of transactions, which will be shown to the end user.
ATM Transactions
These are transactions conducted at ATMs. 1. Cash Withdrawals: Withdrawing cash from an ATM using a debit or credit card. 2. Balance Inquiries: Checking the balance of an account using a card.
Card Present Transactions
These occur when the physical card is present at the point of sale (POS). 1. Swipe Transactions: The card is swiped through a magnetic stripe reader. 2. Chip-and-PIN (EMV) Transactions: The card’s chip is inserted into a reader, and the cardholder enters a PIN. 3. Contactless (Tap) Transactions: The card is tapped near a contactless reader (using NFC technology).
Mobile Wallet Transactions
These involve the use of digital wallets on mobile devices. 1. In-Store Mobile Wallet Payments: Using apps like Apple Pay, Google Pay, or Samsung Pay to pay at a POS terminal. 2. In-App Mobile Wallet Payments: Paying for goods or services within a mobile app using stored card details.
Card Not Present Transaction
These occur when the card is not physically present. 1. Online Transactions: The card details are entered on an e-commerce website. 2. Recurring Transactions: Payments are automatically deducted at regular intervals (e.g., subscriptions).
Contactless Payments with Wearables
Payments that are made using devices like smartwatches or fitness trackers with contactless payment capabilities.
Purchase in Different Currencies
As long as the regulatory construct allows your card can be used to transact worldwide across all supported merchants by the network, irrespective of where it was issued. Purchases made in currencies/locations different from the country of issuance are classified as cross-border transactions. The MatchMove platform leverages the conversion rates provided by the network to convert the amount into the equivalent currency of your account and do a corresponding balance deduction. This conversion incurs a charge from the network, which is reflected as a separate fee transaction posted to your customer's account.
To learn more about the transaction authorization process, refer to the Transactions Authorizations section.
Settlements
The process of receiving settlement data from networks and reconciling it to compare with authorization data, correcting mismatch entries, and posting the same to cardholders to settle with networks
Stages of the Settlement Process
Card transactions can be further bifurcated based on the settlement stage that there are in:
- Clearing
- Reconciliation
- Posting
Partners can go to the Transaction Settlements section to learn more about the transaction settlement process.
Funding Models
The MatchMove platform offers different types of funding models that can affect the way a card authorization is processed.
Card Authorization Modes
The platform gives partners the flexibility to choose the role they want to play in the authorization process.
Platform-managed Authorization
The MatchMove platform is responsible for end-to-end transaction authorization processing
Shared Authorization
MatchMove API consumers can configure a synchronous webhook to handle authorization requests, allowing partners to control the final decision before a transaction gets authorized.
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