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Transaction Flow

Learn about the transaction flow.

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While many transactions follow a basic flow consisting of an initial authorization and a subsequent clearing message to settle funds, at times more complicated lifecycles occur.

Example Flow: Authorizing and ClearingExample Flow: Authorizing and Clearing

Example Flow: Authorizing and Clearing

  1. Network transmits ISO-8583 MTI 0100 message to Lithic.
  2. Lithic converts the ISO-8583 message to transaction model JSON and sends an ASA request to the client.
  3. The client responds with HTTP 200 ASA JSON response body with result APPROVED. *HTTP 200 & ASA response required.
  4. Lithic converts the ASA response body to ISO-8583 response and returns to the network.
  5. Acquirer initiates completion of the transactions and Lithic receives ISO-8583 MTI 0220 advice from the network.
  6. Lithic processes the ISO-8583 message and responds with an approved response back to the network.
  7. Lithic converts the ISO-8583 message to a JSON transaction model with status SETTLED and sends a Clearing message to the client. Step 6 & 7 are processed concurrently.
  8. The client responds with HTTP response code 200 to acknowledge. *HTTP 200 required.

Transaction Sequence

SequenceDescriptionIndicator
Authorization ReversalAcquirer initiates reversal of pending authorization. Authorization expires after 7 days or after the authorization lifecycle, whichever comes lastThe transaction model in step 7 contains status VOIDED. The most recent event contains event type VOID
Authorization TimeoutIssuer has exceeded the authorization maximum response time and the network has issued a decline to the acquirer on behalf of the issuerThe transaction model in step 7 contains status VOIDED. The most recent event contains event type AUTH_ADVICE
Force PostThe acquirer may initiate a forced clearing transaction with no prior authorization. These transactions are subject to chargeback upon cardholder disputeSteps 1-4 are omitted. Transaction model in step 7 contains status SETTLED
Financial AuthorizationA single-message (SMS) transaction. The effective date is immediate upon approval. No additional clearing message will be sentFINANCIAL_AUTHORIZATION status indicates SMS flow. Steps 5-8 are omitted
Financial Authorization ReversalA financial authorization may be reversed. This is similar to a refund except that the financial reversal will be associated with the original authorization (refunds are always separate transactions)FINANCIAL_AUTHORIZATION webhook will contain status SETTLED. Upon financial reversal, the new status of the transaction will be VOIDED
Multiple CompletionMultiple permutations of partial completion and partial reversal may follow an approved authorizationAdvice messages replacing step 7 with type CLEARING or VOID with respective amount and settled_amount indicators.

In the case of partial capture (e.g., e-commerce use case where merchant authorizes amount for total order, but “captures” in smaller amounts if order is shipped in multiple parts), Lithic will generate VOID events under the transaction to release any uncaptured amounts left from the authorization after a period of time
Authorization AdviceAdvice may adjust the authorization to a higher or lower amountAdvice message between steps 2 and 7 with event type AUTH_ADVICE including the new amount. The total of subsequent CLEARING event transactions will be for the amount indicated in the advice message

Updated 3 months ago

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