ABSTRACT

As previously discussed, bankcard networks have authorization servers that filter abusive transactions according to precise criteria, such as if an expense ceiling is reached or if an excessive number of transactions are conducted in a given interval. Thus, before authorizing a bankcard transaction, the merchant has to query the authorization servers of the card scheme. Later in the settlement phase, the merchant is paid the amount that corresponds to the goods or services. However, various bankcard systems require that financial settlement be made only after shipment of the acquired goods. It is only then that the merchant sends the bank a clearance request to recover the outstanding debts; this request is then forwarded through the banking networks to the issuer bank. Note that in some bankcard systems, the authorization and settlement requests can be combined in the same operation for each transaction. Other systems allow the grouping of transactions, so that several authorization and settlement requests can be sent at the same time, for example, at the end of the workday. If the merchant is to reimburse the buyer, either because the product was returned or was defective, the merchant gives its bank instructions to credit the client’s account.