Thread Options
#1252333 - 09/17/09 07:26 PM Authorization vs. Transaction Process DebitCard
dkd1959 Offline
New Poster
dkd1959
Joined: Sep 2003
Posts: 23
Missouri
My recollection is, if a merchant does not send through a matching transaaction for a pre-authorization timely the financial institution has chargeback rights. I thought that the merchant had 4 days to send through the matching charge. Is that correct?
_________________________
Denise DeRousse, AAP, CTP

Return to Top
eBanking / Technology
#1252540 - 09/17/09 10:29 PM Re: Authorization vs. Transaction Process DebitCard dkd1959
C_Groat Offline
Member
Joined: Mar 2006
Posts: 70
Salt Lake City, UT
Under Visa, the auth number is good for up to 180 days. For chargeback rights, review RC 74 - Late Presentment - on the provisions for chargebacks. Have been out of the MC loop for a bit and do not recall the specific timeframe, but it is also well beyond 4 days.

The time you set on your system to have an unmatched auth fall off is up to you, but the longer you go the greater the customer impact. I would say around 3 days is industry average. Most merchants want to get their funds ASAP so it is not a big deal as they settle as quickly as possible but your biggest risks with the auth falling off in 3-4 days will be with hotels and car rentals that are allowed to continue to get auths from day 1 up until the rental or stay has been exhausted. They are allowed to obtain an auth daily and post the lump sum amount using the original auth code.

Return to Top

Moderator:  Andy_Z