[Fwd: Re: Re: Cancelling authorization transactions] - Mailing list pgsql-patches

More information on authorization charges.

-------- Original Message --------
Subject: Re: Re: Cancelling authorization transactions
Date: Thu, 8 Apr 2004 07:13:22 -0700 (PDT)
From: VeriSign Payment Support <vps-support@verisign.com>
To: chriskl@familyhealth.com.au <chriskl@familyhealth.com.au>

Hello,

Thanks for writing to VeriSign Payment Services.

An Authorization transaction, if successful, creates a hold-to-buy or
reservation on the card for the specified dollar amount. The hold-to-buy is
not an actual charge, but it does count against the card's credit limit.
The hold usually drops off the credit card within 5 to 7 days, depending
upon the card issuing bank's policies.

Even after the hold has dropped from the card, the bank may still allow the
authorization to be captured and submitted for payment up to 30 days after
the original Authorization transaction was issued.  However it is possible
an authorization could be accepted later than this but most banks will
charge a penalty fee.  Please consult your merchant bank for more
information.

Even if a transaction is voided the funds are not released as a void only
stops settlement of the transaction.

Even though a customer cancels an order, a delay capture is not generated
or the authorization is voided, the authorization will still be valid until
the cardholder's bank deems it long enough to release it which could be
from 7 to 30 days.  Normally this would not be a concern; however, due to
customers using debt cards this become an issue as the funds being held are
being deducted from their checking accounts.

Option available should a customer cancel their order and request an
authorization to be released:

1) Contact the customer to obtain the name and phone number of the issuing
bank (the number can usually be found on the back of the credit card).
2) Contact the issuing bank and provide the account number and
authorization code of the transaction in question and request that the
funds be released (the transaction and authorization are to be voided).
3) Once the funds are released the authorization code given will be voided
and cannot be used. Releasing the funds is dependant on each bank and is
not guaranteed that the cardholder's bank will do so.


Please feel free to reply to this mail or call us at 888-883-9770, if you
need any more information or clarification.


Regards,
Elizabeth
VeriSign Payment Services


Thanks for using VeriSign Payment Services.  Please try Search Support, the
next generation of on-line customer support:
http://searchsupport.verisign.com/


REF Number: 395013.00000


Message from chriskl@familyhealth.com.au
----------------------------------------------------------------------------


Hi Michael,

I have to admin that if this is genuinely true then it really boggles
the mind.  How is it possible for a bank to act like that?  Are you sure
this is a possibility?  How can we possibly operate a business under
these conditions?

Chris

VeriSign Payment Support wrote:

> Hello,
>
> Thanks for writing to VeriSign Payment Services.
>
> If they actually have been billed, it is the fault of the card holders
bank
> by not doing their job and seeing what kind of transaction was requested.
> Most likely the banks think these are card sipe machine type transactions
> where they are not. As long as you have not delay captured the
> transactionsyou should have no issue with that.