New Hold Adjustment Rule Type Available in the Auth Rules API

Overview

The Auth Rules API now supports a new conditional rule type that dynamically adjusts the hold amount on an authorization when its conditions are met. Common use cases include padding holds by a percentage for merchant categories where tips are added after the initial authorization (such as bars, restaurants, and taxis), replacing the hold with a fixed amount for automated fuel dispensers where a $1 authorization allows significantly more fuel to be pumped, and adding a fixed amount to cover program-assessed fees (such as ATM fees or foreign transaction fees) so that those fees do not push balances negative.

Details

A new variant has been added to the auth-rule-parameters schema on the /v2/auth_rules endpoints. The variant is titled Conditional Adjustment (Authorization) Parameters and contains two top-level fields: adjustment, which defines how the hold amount is modified, and conditions, which defines when the adjustment applies. The conditions array uses the same attribute, operation, and value structure as other conditional Auth Rule types.

Adjustment Fields

• adjustment.type - The type of adjustment. Currently the only supported value is HOLD_ADJUSTMENT.
• adjustment.mode - Determines how adjustment.value is interpreted. See the values below.
• adjustment.value - The integer used for the adjustment, interpreted based on mode.

Adjustment Modes

• REPLACE_WITH_AMOUNT - value is the approved hold amount in cents and replaces the original hold amount.
• ADD_PERCENTAGE - value adjusts the hold amount by a percentage, where 1000 represents a 10% increase and 0 represents no change.
• ADD_AMOUNT - value is added to the hold amount in cents.

Example Requests

Pad restaurant and bar holds by 20% to cover tips using ADD_PERCENTAGE:

POST /v2/auth_rules

{
  "name": "Pad holds for tip-based MCCs",
  "parameters": {
    "adjustment": {
      "type": "HOLD_ADJUSTMENT",
      "mode": "ADD_PERCENTAGE",
      "value": 2000
    },
    "conditions": [
      {
        "attribute": "MCC",
        "operation": "IS_ONE_OF",
        "value": ["5812", "5813", "5814", "4121"]
      }
    ]
  }
}

Replace AFD holds with a fixed $175 amount using REPLACE_WITH_AMOUNT:

POST /v2/auth_rules

{
  "name": "Set fixed hold for fuel dispensers",
  "parameters": {
    "adjustment": {
      "type": "HOLD_ADJUSTMENT",
      "mode": "REPLACE_WITH_AMOUNT",
      "value": 17500
    },
    "conditions": [
      {
        "attribute": "MCC",
        "operation": "IS_ONE_OF",
        "value": ["5542"]
      }
    ]
  }
}

Add a fixed $3 buffer to ATM withdrawals to cover program-assessed fees using ADD_AMOUNT:

POST /v2/auth_rules

{
  "name": "Buffer ATM withdrawals for fees",
  "parameters": {
    "adjustment": {
      "type": "HOLD_ADJUSTMENT",
      "mode": "ADD_AMOUNT",
      "value": 300
    },
    "conditions": [
      {
        "attribute": "MCC",
        "operation": "IS_ONE_OF",
        "value": ["6011"]
      }
    ]
  }
}

Release Timeline

Available now

User Impact

This change is additive only. Existing integrations will continue to function without modification.

Updated Documentation

For more information on conditional Auth Rule types, visit our Authorization Rules guide.

If you have any questions or concerns, please contact us via the HELP link in your Lithic Dashboard.

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