Authorization Process

[moproduwre]

Greetings!

Anyone here could point me to detailed resource (infographic/flowchart would be very nice) on how authorization and validation is processed behind Authorize.Net? For example, I have a basic credit card validation process on my web site that checks for a valid credit card number format, expiration date, and CVV. How does Authorize.Net handle incorrect information like (card is inactive, expiration date on card mismatch, etc.). I'd also like to know which of those process are charged for a fee or when are those fees applied (maybe a sample scenario with steps/flowchart where the fees applies so I may be able to have an idea of what I am entitled to pay for).

I am also interested on how FDS works with CIM? Like how can my web app know that a transaction was flagged suspicous and that the transaction was set on "hold"? Will this apply a per transaction fee as well aside from the monthly fee for using FDS?

Respectfully,

[TJPride]

http://www.authorize.net/support/CNP/helpfiles/Account/Merchant_Profile/Fee_Definitions.htm

Credit Card Transaction Fee -- The fee charged by the payment gateway for each credit card transaction. The credit card transaction types for which the per-transaction fee is charged are: charges, refunds, voids and declines.

As far as I know, the transaction fee is only charged if it makes it past the surface validation and to the point of actually charging against the credit card. The credit card may still decline due to lack of balance, but I don't believe you're charged if the card has expired or the card number is improperly formatted or anything like that.

In answer to your other question, you would get a response code of 4 - held for review. There are of course additional individual response values for AVS, CVV, CAVV, etc. I don't know if you're charged for held transactions.

[Trevor]

Before Authorize.Net attempts to pass a card on to the processor, we verify everything we can to make sure that it has the potential of being approved.  This does go beyond the Luhn algorithm that you mention and includes additional information such as BIN range validation and some additional rules provided to us by each card brand.

TJ is correct that charges from Authorize.Net are only incurred when we actually attempt an Authorization with the card processing network.  This would mean that it has passed all of the previously mentioned checks.  In terms of AFDS, whether or not a transaction fee is incurred depends on which filter action you take.

For most filters, there is no fee charged when you have the action set to Decline or Do not Authorize and Hold for Review. There is a fee charged for Authorize and Hold for Review and Report Triggered filters. The exception to these rules are transactions filtered by the Advanced Address Verification or Advanced Card Code Verification filters. The address and card code details can only be validated by running an Authorization, so there will always be a transaction fee for these transactions.