Monday, January 10, 2011

Credit Card Transaction

Auth
Authorization
Capture
Pre-authorization/Post-authorization
Sale
Description Preauthorizes and postauthorizes in one step. In the U.S., an Auth is typically used for credit card purchases that do not require physical shipment of goods or for check purchases in which the processor requires an Auth transaction. For credit card transactions, an approved Auth places a hold on the account holder's “open-to-buy” balance and the purchase is immediately ready to be settled.
What You Need to Know In an Auth transaction, a PreAuth and a PostAuth are performed simultaneously. In the U.S., purchases of hard goods (that is, goods that must be shipped) must go through a PreAuth and a PostAuth in two separate steps. If you must meet this requirement, use the Auth transaction type only when you transfer products electronically, that is when you deliver soft goods. Use a PreAuth and a PostAuth for purchases of hard goods.
No funds are transferred during a Sale. Funds are transferred when a batch is settled.
ref:secure-epayments.hsbc.com
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