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How to do Authorization Reversals?

So as everyone knows, a void and an AVS mismatch can cause funds to get held on a customer's credit card for up to seven days.  I read in the AIM guide there is a response code for x_reversal field but there is no documentation I have found that documents how a reversal works.  Very, very often we have people complain about funds being held and we'd love to have a fix.  Does anyone know if this is available yet, and if so where is documentation on it?  Thanks.

Webguys2
Member
Member
4 REPLIES 4

Hey Webguys2,

 

I'm looking into it, but I'm pretty sure that the "x_reversal" thing quoted in the response code section is an error that will need to be removed. I'll post again to this message once I know for sure, but I'm pretty sure you can disregard that.

 

When we talk about supporting full reversals, we basically mean that you are issuing voids on all unused authorizations in your system. When you issue a void, Authorize.Net sends that void to your processor. In the past, this has been known to take up to seven days as you indicated. But with the MasterCard requirements that came out recently, this functionality is changing. Now, when we send the void to your processor, they will immediately process it if they support full reversals on our system. You can view the table here to see what processors are currently supported and the anticipated dates for the others.

 

So basically, once your processor is listed as supported in that table, then anytime you issue a void, it will be an immediate void, freeing up the available funds on a customer's debit, prepaid or gift card. Additionally, all AVS declines will automatically be voided by Authorize.Net to free up those funds and avoid customer confusion.

 

One important thing to note is that while we are building support for reversals in our system for Visa and American Express, they are not at this time requiring it. That means if a customer pays using one of these cards types, and you issue a void, there may still be a hold time as there is now. Or there may not. It depends on how the bank decides to handle it. Only MasterCard and Discover are requiring the full reversals.

 

Hope that helps. I'll get back to you probably next week on that "x_reversal" thing, but until then, I'm sure you can disregard it.

 

Thanks,

 

Michelle

Developer Community Manager

Michelle
All Star

OK, I got confirmation. "x_reversal" has nothing to do with anything. You can totally disregard it. We'll be removing it from the documentation.

 

Thanks,

 

Michelle

Developer Community Manager

I have implemented the partial auth changes but when testing with various prepaid cards, I have found that the reversal does not actually send the message to the prepaid card card processor immediately. The partial auth approval and balance return to work so i know the functionality is supported by my processor. However, if prepaid card issuer does not support it, isn't it a moot point?  Also, my understanding is the VOIDs are not even sent to the processor real time- they are sent as a flag not to settle a specific auth when the batch is otherwise submitted for settlement- so if the auth reversal is essentially a void, isn't it misleading to say that this is "immediate"? 

For all processors and card types that support partial Authorizations, Authorize.Net also supports Full and Partial Reversals.  These reversals are a signal sent to the processor that indicate that the merchant will not be capturing the Authorization Code and that the card issuing bank can release any hold that they have placed on funds.  Authorize.Net automatically sends a full reversal whenever a transaction is voided, you can tell if a reversal has been sent by looking to see if the Authorization Code is visible in the transaction Details in the online interface.  Once Authorize.Net has sent a reversal, the Authorization Code is removed from view because it is no longer valid.

 

In an ideal world, this would mean that customers would see their funding made available again immediately after a transaction is voided.  Unfortunately, the card processing industry is not ideal and many (if not most) banks still do not release funding holds as soon as an authorization is reversed.  In the case that the the customer's funding is held by the bank after a reversal has been issue, there is simply nothing further that a merchant can do to release the funding hold.