Authorization Hold Times

Mikeyorks

savagej wrote: »

This is a link to courses run by Visa on the processes of authorisation and settlement. http://www.visabs.com/default.aspx?e=247

Excellent. I can now book a day long course on the process of 'authorisation'. But - it doesn't otherwise tell me anything?

You're forgetting a fundamental as regards this thread. This is a stranded / phantom transaction. As far as the retailer is concerned it doesn't exist. At the merchant acquirer level it may or may not exist. It is only at the Bank level that it exists.

So if Visa etc can dump the authorisation - why allow the stranded transaction to happen in the first instance? I'm aware they can void it. But only if someone draws it to attention and they take specific action. It doesn't happen by default - as they're not aware it's an issue. The only way such transactions drop by default - is where the Bank gives up waiting for the debit and restores the cash to available.

I've had 2 such phantom transactions removed over the years. Both where hotels have pre-authorised a value and then erroneously failed to neutralise or re-use the transaction on the final bill. In both cases I've phoned the hotel and forced them to neutralise the pending value via their acquirer. Because it irritates me that untrained staff get it wrong. Had I chosen to wait a few days my bank would have done it. 'Visa' wouldn't .... because it doesn't register as incomplete with them.

Throw away the spade!

savagej

I like digging it is what I do best !!!!! :eek:

I see your point so on this occasion, I might just give up.....

Enjoy the course, I am on commission :beer:

Edit: one point worth making is that sometimes it helps to think of Visa/Mastercard from the point of view of a club you set-up and made the rules and if YOU LET someone join they follow your rules.

These members MUST follow them to the letter (where statue/common law does not take precedence so they are valid contracts), of their membership, or you chuck them out on their ear (or better you fine them and screw more cash out of them!)

savagej

The authorisation hold time is set by Visa and Mastercard, it is not set by the bank.

savagej

ToeJam, where did your post disappear to? Did you change your mind? What factors are involved in the authorisation of a Visa transaction, how does that vary when it come from outside of the country the card was issued? How does it relate to the fraud score for the merchant and the fraud score for the transaction? etc. etc.

The only real reason for a difference for two transactions of exactly the same type with different banks would be due to the coder not writing the algorithm properly that counts down the days to "drop off", or matches the transaction at settlement and more often than not as mike pointed out it is to do with the person operating the machine the transaction has originated from not having read the manual correctly.