Transaction Processing

Card Transaction Processing can be configured to work with any compatible processor. Transaction processing manages a series of conditions when determining whether a transaction should be approved or not. The Auth transaction can come in as ISO20022, ISO8583 or JSON.

When a card is used by a customer to transact with a merchant, the transaction details are captured and routed through the chosen payment network to the Issuing bank in order to authorize the payment. This authorization process will validate the card credentials, score the risk level of the transaction, check against card and account limits as applicable and ultimately approve or decline the transaction. Here is a quick decision tree on how this process works within Interlace when receiving an authorization request as Interlace will be holding the customer’s account balance.

Typical decisioning processing flow as an example:

Check the status of the Account. If the account is Restricted, Delinquent, has a Negative Current Balance, or is Pending Closed or Closed, then this transaction should be declined.
Next, is the Card Active? If not, decline.
Then is the transaction amount $0.00? If so this is an account inquiry or balance inquiry. Approve and return result. If the transaction is > $0.00, continue.
The transaction is then routed through our risk-decision model to determine the transaction’s likelihood of fraud.
Then check if this is a Funds Upload. If yes, Approve. If not, move on to next criteria.The following are now all Spend Transactions:
Does the Account go over any Daily or Monthly spending limits? If it does decline the transaction, if not move on to the next criteria.
Is the merchant a Gas Station (based on MCC)? If yes, ensure the Available Account Balance is greater than Automated Fuel Dispenser (AFD) minimum amount. If not, check if the Merchant Approves partial auth., and if so, the account meets the balance criteria then approve, otherwise decline.
If it’s not a Gas Station, then approve the transaction.