TabaPay Partial Authorization Service

COMING SOON

Overview

While prepaid and debit cards are used for instant pull payments, what happens if they do not have enough funds to cover the full transaction amount? TabaPay’s Partial Authorization Service provides an alternative to declining a transaction when the card’s available balance is not sufficient to approve a transaction in full. Participating issuers return an authorization response with an approval for a portion of the original amount requested, enabling the remainder of the transaction amount to be paid by other means using split-tender functionality.

Within the money movement space, when it comes to instant payments, prepaid and debit cards are popular payment methods. But what happens if they do not have enough funds to cover the full transaction amount? TabaPay's Partial Authorization Service provides an alternative to declining a transaction when the card’s available balance is not sufficient to approve a transaction in full. Participating issuers return an authorization response with an approval for a portion of the original amount requested, enabling the remainder of the transaction amount to be paid by other means.

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Supported Card Brands

At the moment, Partial Authorization Service is only available on Visa Cards.

Benefits

For Fintechs
• Complete more sales
• Reduce authorization declines
• Keep customers happy by allowing them to use their desired payment method
For your consumers
• Use all available funds on their prepaid or debit card
• Complete a purchase seamlessly by using another form of payment to supplement available funds
• Avoid the discontentment of being declined when they’re unsure of their
remaining balance

How it works

  1. TabaPay client's Customer presents a card to be used for the "pull" transaction. Initates a transaction of $100.
  2. TabaPay client sends out the Create Transaction Request which includes the Partial
    Authorization indicator.
  3. TabaPay sends the transaction to card network with the partial authentication indicator turned ON for the transaction.
  4. Card network conducts transaction verification and forwards the transaction to the issuer.
  5. Issuer evaluates the transaction and approves the available balance of the cardholder. When the card’s balance is less than the purchase amount, TabaPay sends back an authorization response with a unique response code and the available balance as a partial amount approved.
  6. Card network informs TabaPay of the partially approved amount
  7. TabaPay shares the results of the partial approval to the TabaPay client
  8. TabaPay client identifies the unique response code, subtracts the partially approved amount from the total transaction amount (and optionally requests another form of payment, using split-tender functionality. TabaPay Client's Customer pays the remaining amount of purchase with another form of payment, ...upto TabaPay Client's policies and capabilities)

Note: This ensures TabaPay Client's Customer is satisfied with a seamless process. If the customer does not wish to complete the sale, the merchant should initiate an authorization reversal.

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Things to remember

  • Partial authorization works the same way as regular transactions: upon receipt of a partial approval, present your customers with an option to pay for the balance with another form of payment.
  • Ensure customer-facing pages clearly communicate why there is an outstanding balance and what amount will be charged to the additional form of payment.
  • Clearing transactions will only be for the amount partially approved—this is the maximum amount of issuer liability, and there is no 15% tolerance allowed on partial authorizations.

Post Transaction Choices

  • TabaPay Clients can identify the unique network response code, subtracts the partially approved amount from the total transaction amount, and requests another form of payment, using split-tender functionality.
  • Customer pays the remaining amount of purchase with another form of payment, depending upon
    the TabaPay Client's policies and user experience/capabilities.
  • TabaPay Client completes the sale and prints a receipt showing each payment amount.

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Reversal Request

If the customer does not wish to complete the sale, TabaPay Client should initiate an authorization reversal.

Best Practices

  • Alternate Payment Methods for Remainder: Partial authorization works the same way as face-to-face transactions: Upon receipt of a partial approval, present the customer with an option to pay for the balance with another form of payment.
  • Customer Education: Ensure customer-facing pages clearly communicate why there is an outstanding balance and what amount will be charged to the additional form of payment.

FAQ

How will merchants know how much remainder amount is unauthorized?

In the Create Transaction API Response, TabaPay will include a network response code of 10 to specify the authorization was only partially approved, and will contain both the partially approved amount as well as the originally requested full authorized amount.

For e.g. if the Create Transaction API was requested with Partial Authorization and if the original transaction amount was $100 and only $40 was partially authorized, then the Create Transaction API Response includes a network response code of 10, the original amount of $100, and the partially approved amount of $40. The difference between the two amounts will indicate the remaining unauthorized amount.

Are all card brands supported for partial authorization service?

Currently only Visa prepaid and debit cards are supported for partial authorization service.

Do all issuers support partial authorization?

All Visa prepaid issuers and all acquirers are required to support partial authorization, and an increasing number of debit issuers support the service as well.

Let's say a TabaPay Client initiates a Visa transaction for $100 worth of merchandise but only has a balance of $80 available. What happens when partial authorization is supported?

Create Transaction API Request: Includes transaction amount of $100 and the partial authorization indicator is ON.

Create Transaction API Response: Includes a network response code of 10, and both the partially authorized amount of $80 and the original transaction amount of $100 is returned back in the response.

When do TabaPay Clients reverse Partially Approved transactions?

Here are a few examples:

  • When the customer does not offer additional funds to complete the transaction amount and the sale is canceled.
  • The customer abandons a sale.
  • The transaction is subsequently voided or cancelled for various reasons.