[1] With the single message system, authorization, clearing, and settlement all occur in a single message. The single message system is most commonly used for transactions with a PIN confirmation, such as card-present and ATM transactions. In this arrangement, there is no initial authorization request before the financial settlement is made.
[2] Pre authorization is the practice within the banking industry of verifying electronic transactions initiated with a debit card or credit card and rendering this balance as unavailable until either the merchant clears the transaction, also called settlement, or the hold “falls off.” in the case of debit cards, authorization holds can fall off the account, thus rendering the balance available again, anywhere from one to eight business days after the transaction date, depending on the bank’s policy. In the case of credit cards, holds may last as long as thirty days, depending on the issuing bank. Transactions may be withdrawn but, in most cases, especially with smaller banks will not show up as a deposit on your statement but will instead be directly added to your available balance automatically due to it only being a “temporary charge”.
[3] A Merchant Category Code (MCC) is a four-digit number listed in ISO 18245 for retail financial services. An MCC is used to classify a business by the types of goods or services it provides.
[4] In electronic commerce, a chargeback is a reversal of a credit card transaction, which is usually initiated by the card issuer as requested by the cardholder. … Chargebacks usually occur due to fraudulent activity on the card (real or perceived), due to customer disputes, or from other authorization issues
[5] CBN Circular on Pre–authorization, 2019. The circular takes immediate effect but with deadline of the 21st day of July, 2020 for full compliance after which appropriate sanctions would be imposed for contraventions and noncompliance.
[1] With the single message system, authorization, clearing, and settlement all occur in a single message. The single message system is most commonly used for transactions with a PIN confirmation, such as card-present and ATM transactions. In this arrangement, there is no initial authorization request before the financial settlement is made.
[1] Pre authorization is the practice within the banking industry of verifying electronic transactions initiated with a debit card or credit card and rendering this balance as unavailable until either the merchant clears the transaction, also called settlement, or the hold “falls off.” in the case of debit cards, authorization holds can fall off the account, thus rendering the balance available again, anywhere from one to eight business days after the transaction date, depending on the bank’s policy. In the case of credit cards, holds may last as long as thirty days, depending on the issuing bank. Transactions may be withdrawn but, in most cases, especially with smaller banks will not show up as a deposit on your statement but will instead be directly added to your available balance automatically due to it only being a “temporary charge”.
[1] A Merchant Category Code (MCC) is a four-digit number listed in ISO 18245 for retail financial services. An MCC is used to classify a business by the types of goods or services it provides.
[1] In electronic commerce, a chargeback is a reversal of a credit card transaction, which is usually initiated by the card issuer as requested by the cardholder. … Chargebacks usually occur due to fraudulent activity on the card (real or perceived), due to customer disputes, or from other authorization issues
[1] CBN Circular on Pre–authorization, 2019. The circular takes immediate effect but with deadline of the 21st day of July, 2020 for full compliance after which appropriate sanctions would be imposed for contraventions and noncompliance.
