Transaction messages can generally be separated along two dimensions: financial vs. non-financial messages, and requests vs. advice.
|Requests||Message that requires a response but does not move money (e.g., authorization)||Message that requires a response and moves money (e.g., financial authorization)|
|Advice||Informational message that does not move money (e.g., auth advice)||Informational message that moves money (e.g., clearing)|
Financial messages prompt movement of funds between accounts (e.g., a clearing message that prompts an ACH debit from the user's connected account), while non-financial messages don’t prompt movement of funds (e.g., an authorization request that induces a hold on funds but doesn’t trigger a payment to the merchant until the transaction is settled). Authorization holds should be temporary, as transactions that are subsequently declined will have the associated funds returned to the end-user for future use.
On the other axis, requests are messages that require a response (i.e., approval or decline) to Lithic, while advice messages don’t require a response other than a notification that the advice was received.
Updated about 2 months ago