Collaborative Card Authorization Model

Overview

As the client, you can participate in the authorization transaction made by the customer and decide whether to approve or decline the transaction. Nium supports 2 models:

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NOTE

Read about the Wallet model - for an alternative approach, where you can get NIUM to keep your customer balances at NIUM's wallet level.

1. Remote Host Authorization (RHA)

In the RHA model, wallet balances will be at your side, and you will be the final decision maker when it comes to authorizing the transaction.

NIUM will perform a card verification and a balance check of your float/funding account during the transaction. Upon a positive result, you will be involved in the decision-making process by validating the customer balances against transaction amount and other rules that you might want to apply/check. If your system approves the transaction, NIUM will debit the float/funding source and respond back to the card networks

2. Extended Authorization (EA)

In the EA model, Nium will maintain and manage your customer balances while you will be the final decision maker when it comes to authorizing the transactions.

NIUM will perform a card verification, a balance check of your float/funding and also validate the customer balance during the transaction. Upon a positive result, you will be involved in the decision-making process by participating in the authorization and applying any rules that you might have. If your system approves the transaction, NIUM will debit the float/funding source & wallet and respond back to the card networks.

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NOTE

NIUM platform also allows you to fund in multi-currency funds, and this is where NIUM's multicurrency authorization logic applies during the authorization requests.

This table below will help you get a better understanding

Type of CheckRemote Host AuthorizationExtended Authorization
Card CHIP Related ChecksNiumNium
Card PIN or CVV2 (if applicable)NiumNium
Velocity LimitsNiumNium
Float or Funding Account CheckNiumNium
Balance CheckClient (you)Nium
Final Authorization DecisionClient (you)Client (you)

The table below explains the types of transactions that are sent depending on the model chosen

Type of TransactionRemote Host AuthorizationExtended Authorization
Authorization (Debit)YesYes
Authorization ReversalYesNo
Original CreditYesNo
Original Credit ReversalYesNo
Reversal AdviceYesNo

The prerequisites and the transactions are common for both the models, explained in subsequent pages