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Transaction Scenarios and Handling

This guide explains common transaction scenarios and operational behaviors that may occur during card usage and payment processing.

It is intended to help clients better understand transaction flows, operational edge cases, and related handling mechanisms across different integration modes.

Forced Post Transaction (Merchant-Initiated Debit)

  • Definition
    • Refers to transactions initiated by a merchant or platform without the cardholder's valid authorization, or beyond the originally agreed scope or authorization terms.
  • Common Scenarios
    • A merchant continues charging after the user has cancelled a subscription by using previously saved payment details.
    • A hotel or car rental company charges additional amounts after the customer leaves, citing damages, penalties, or other fees.
    • A platform deducts the original transaction amount again after identifying abnormal refund behavior or suspected abuse.
    • A merchant retries a failed charge after the original payment could not be completed due to insufficient balance.
    • A platform or merchant initiates additional charges that the cardholder believes were not clearly disclosed or authorized in advance.
  • Recommended Actions
    • Cardholders are advised to contact the merchant first to request clarification or a refund.
    • If the issue cannot be resolved directly with the merchant, Interlace may assist in initiating a chargeback dispute.

Unauthorized Transaction (Card Fraud)

  • Definition
    • Refers to transactions where fraudsters illegally obtain and misuse a cardholder's payment card information (such as card number, expiry date, or CVV) to initiate transactions without the cardholder's permission.
  • Recommended Actions
    • Freeze the Card Immediately: Use the Suspend Card API to freeze the card and prevent further fraudulent transactions.
    • Remove the Exposed Card: If sensitive card information has been exposed, use the Delete Card API to remove the card and and create a new one.
    • Configure Merchant Blacklists or Restrictions: Use the Consumption Scenarios API to block or restrict transactions from merchants or scenarios with frequent fraud activity.
    • Contact Interlace for Assistance: Provide suspicious transaction details to your account manager or operations team. Interlace may assist in initiating a chargeback dispute.
  • Prevention Tips
    • Ensure proper system and integration security to reduce the risk of data leakage.
    • Advise cardholders to protect sensitive card information properly.
    • Avoid entering card details on unknown or untrusted websites.
    • Avoid clicking suspicious links or phishing pop-ups.

Negative Card Balance

  • Definition
    • A negative balance occurs when the final debited amount exceeds the available card or budget balance, resulting in a balance below zero.
  • Common Scenarios
    • A force post or additional merchant debit may exceed the available balance at settlement, resulting in a negative balance.
    • The authorized amount may match the available balance, but additional FX or cross-border fees may cause the final settlement amount to exceed the remaining balance.
  • Interlace Handling
    • Interlace does not immediately restrict accounts when a negative balance occurs, provided the outstanding amount is repaid promptly.
    • Interlace performs balance checks on the 1st and 15th of each month. If a negative balance remains outstanding, account restrictions or recovery actions may apply. Long-term unresolved negative balances may result in offboarding procedures.
  • Repayment Methods
    • MoR Mode
      • Customers may manually repay the negative balance by topping up the Infinity Account and transferring funds to the affected card or budget. If repayment is not completed within the required timeframe, Interlace may automatically deduct funds from the Infinity Account.
    • Gateway Mode
      • Currently, negative balances must be repaid manually by transferring funds to the affected card or budget. Automatic repayment is not yet supported.
  • Related APIs

Transaction Adjustment

  • Definition
    • When the authorized amount differs from the final settlement amount, Interlace performs a transaction adjustment to reflect the actual settled amount. This commonly occurs in scenarios such as hotels, gas stations, and restaurants, where the final settlement amount may differ from the original authorization amount.
  • Common Scenarios
    • Final settlement amount exceeds the authorized amount: A hotel pre-authorizes $200, but the final settlement amount is $280 after checkout. An additional adjustment transaction of $80 will be generated.
    • Final settlement amount is lower than the authorized amount: A restaurant pre-authorizes $100 including an estimated tip, but the final settlement amount is $80. A refund adjustment transaction of $20 will be generated.
  • Adjustment Webhook Events
    • Settlement Amount < Authorized Amount
      1. Example: Authorized $100, final settlement $50. The remaining $50 is returned through a refund adjustment transaction.
      2. Original transaction created: CARD_TRANSACTION.CREATED type: 1-Consumption status: PENDING
      3. Refund adjustment transaction generated: CARD_TRANSACTION.UPDATED type: 0-Credit status: CLOSED relatedCardTransactionId references the original transaction businessCodeList includes 1105
      4. Original transaction settled: CARD_TRANSACTION.UPDATED type: 1-Consumption status: CLOSED businessCodeList includes 1005
    • Settlement Amount > Authorized Amount
      1. Example: Authorized $100, final settlement $150. An additional adjustment transaction of $50 will be generated.
      2. Original transaction created: CARD_TRANSACTION.CREATED type: 1-Consumption status: PENDING
      3. Additional consumption adjustment transaction generated: CARD_TRANSACTION.UPDATED type: 1-Consumption status: CLOSED relatedCardTransactionId references the original transaction businessCodeList includes 1103
      4. Original transaction settled: CARD_TRANSACTION.UPDATED type: 1-Consumption status: CLOSED businessCodeList includes 1003
    • Reference

Updated 1 day ago