Online Card Authorisation

Overview

An Online Card Authorisation transaction is a vital payment processing tool used primarily in situations where the final transaction amount is not known upfront. This type of transaction temporarily holds funds on a customer’s credit or debit card, ensuring that the customer has sufficient funds for the intended purchase, but does not actually transfer the funds until the transaction is finalized. Commonly seen in the hotel industry for incidentals, car rental services for security deposits, or in situations where the final bill might vary, like at a gas station or in a restaurant, authorisations provide businesses with a financial assurance.

During an authorisation transaction, a merchant can verify the validity of the card and reserve a specific amount of money. This amount is 'frozen' on the customer's card for a predetermined period, ensuring that the merchant can later capture the exact or a lesser amount. It's important to note that since the funds are not transferred immediately, the actual charge may occur several days later, with the initial Authorisation eventually turning into a full charge or being released back to the customer’s account if not captured.

For businesses, authorisation transactions are beneficial as they reduce the risk of payment declines after a service has been rendered. They also offer customers the convenience of not being charged immediately, giving flexibility, especially in scenarios where the total cost is variable. However, merchants need to clearly communicate with customers about the pre-authorisation process to avoid confusion about temporary account holds. Additionally, understanding the time limits for capturing the authorized amount is crucial, as failing to do so within the specified timeframe results in the release of the hold on the funds.

In essence, authorisation transactions are a strategic tool for managing payments in uncertain or variable billing contexts, balancing financial assurance for the merchant with flexibility for the customer.

Online Card Authorisation: Key Field Descriptions

Here are the key fields required for an authorisation request and their descriptions:

• transactionMethod: Details the method of the transaction:
• intent: Specifies the purpose of the transaction, here set to Authorisation .
• entryType: Indicates the transaction's entry mode, which is Ecom for online transactions.
• fundingType: Identifies the funding source, in this case, Card .
• card: Contains the cardholder's information:
  • number: The card number, here represented as '4111111111111111'.
  • expiryMonth: The expiration date of the card, provided as month ('03').
  • expiryYear: The expiration date of the card, provided as year ('2025').
  • holderName: The name of the cardholder, here 'Mr John Doe'.
  • cvc: The Card Verification Code, '123' in this instance.

Webhook

The standard notification mechanism is used for notifying the merchant in the background (asynchronously) about transaction state changes.

Void an Online Card Authorisation

To void a authorisation, use the 'Transaction Modification' API call.