Card Transactions

A transaction, in the Nium Platform, is a record of a debit/credit event that impacted the wallet balance. The platform supports a number of transaction types.

Card Transaction Types

Transaction Type	Description
`Auto_Sweep`	Automatically sweep from one currency to another within a wallet to authorize a transaction if multi-currency auto-sweep is set up.
`Balance_Inquiry`	Balance inquiry transaction responds with a cumulative balance for single as well as multi-currency wallets in the base currency.
`Chargeback_Credit`	Credit transaction in the case of a chargeback.
`Debit`	Card transaction such as POS, ATM, and ECOM.
`Decline_Advice`	Declined transactions. VISA or MasterCard can decline any transaction if the iCVV / CVV / dCVV is invalid or if it is suspected fraud. These declined transactions are reported and logged with the transaction type as `Decline_Advice`.
`Incremental_Auth _Reversal`	Online reversal of an incremental authorized transaction.
`Original_Credit`	Received incoming Original Credit Transfer (OCT) and credited to the wallet (linked to the cardholder's card).
`Original_Credit _Reversal`	Online reversal of a Direct transfer to a card (i.e., reversal of Original_Credit transaction).
`Partial_Reversal`	Online reversal of the partial amount of an earlier Card transaction.
`Reversal`	Online reversal of a transaction.
`Reversal_Advice`	Reversal initiated when a timeout scenario happens. If VISA or MasterCard time-out a card transaction, they will generate a Reversal Advice to roll back the transaction. In the case of Wallet Clients, Nium will apply the reversal advice and provide the credit back to the customer. In the case of RHA clients, Nium will reverse funds on the client prefund account and also forward the reversal advice to the RHA client for crediting funds back to the customer.
`Settlement_Credit`	Funds credited to cardholder's wallet when settlement amount (processed during Clearing) is less than the transaction amount (processed during Authorization).
`Settlement_Debit`	Funds debited from cardholder's wallet when settlement amount (processed during Clearing) is more than the transaction amount (processed during Authorization).
`Settlement_Direct _Debit`	Funds debited from cardholder's wallet for transactions based on settlement file, example: force posting.
`Settlement_Direct _Reversal`	Funds credited to cardholder's wallet for reversal of debited transaction based on settlement file.
`Settlement_Reversal`	Funds credited to cardholder's wallet for reversal of debited transaction.

Examples

Wallet Client

#	Scenario	Transaction record created by the platform
1	Account holder used the card for shopping at a merchant. Merchant’s acquirer submitted the transaction in real time (for authorization).	System will create a Debit transaction record and will capture details about the merchant, transaction amount and currency, and other relevant details.
2	Account holder used the card for shopping at a merchant. Merchant’s acquirer submitted the transaction directly via clearing (forced posting).	System will create a Settlement Direct Debit transaction record and will capture details about the merchant, transaction amount.
3	Account holder returned the previously purchased product to the merchant. Merchant triggered full refund via its acquirer. Nium is able to relate the refund to the original purchase transaction.	System will create a new Settlement Reversal transaction record (credit amount). System will retain the original Debit transaction record (no change to that).

RHA Client

#	Scenario	Transaction record created by the platform
1	Account holder used the card for shopping at a merchant. Merchant’s acquirer submitted the transaction in real time (for authorization).	System will forward the request to client for authorization. On approval from client, System will create a Debit transaction record and will capture details about the merchant, transaction amount and currency, and other relevant details.
2	Account holder used the card for shopping at a merchant. Merchant’s acquirer submitted the transaction directly via clearing (forced posting).	System will create a Settlement Direct Debit transaction record and will capture details about the merchant, transaction amount.
3	Account holder returned the previously purchased product to the merchant. Merchant triggered full refund via its acquirer. Nium is able to relate the refund to the original purchase transaction.	System will create a new Settlement Reversal transaction record (credit amount). System will retain the original Debit transaction record (no change to that).

Card Transaction Lifecycle

In the NIUM ecosystem, the card transaction lifecycle consists of two parts:

Transaction Authorization
Transaction Settlement

Transaction Authorization

When a customer uses a card at a merchant, an authorization request is received by Cards Middleware from the network.

For a Wallet Client

If the auth request passes all the limits and restrictions set for the client/customer/card AND if there is sufficient balance, the transaction is Approved. If not, the transaction is Declined. Details will be explained later in this document.

For an RHA (JIT Funding) Client

If the auth request passes all the limits and restrictions set for the client/customer/card, Cards Middleware shall forward an auth request to the client. Client needs to respond back to Cards Middleware within a default hard limit of 2 seconds, failing which, the authorization would be Declined.

Transaction Settlement

NIUM has a settlement cycle with the schemes where we receive a settlement file [once a day for Visa, for example]. Cards Middleware shall process this file and if any adjustments are to be made on the transaction, they are done based on the data in this file. This file is treated as final.

For a Wallet Client

Settlement process is totally between NIUM and the scheme. Every transaction is settled between NIUM and the scheme. Any difference in the amounts, which may be credit or debit, is passed on to the customer’s wallet.

For an RHA (JIT Funding) Client

Settlement process is still between NIUM and the scheme but a settlement file is also shared by NIUM to the client because the customer ledger is managed by the client. While NIUM settles the transaction with the scheme and any differences are passed on to the client, it is upto the client to manage the customer ledgers.