Dynamic Authorization

The Dynamic Authorization model lets you participate in the card authorization transaction decision-making process.

Every time your cardholder swipes the card at a terminal, makes an e-commerce transaction, or withdraws money from an ATM, Nium sends you the authorization request.

Nium honors your transaction after you authorize it. Nium captures and settles it based on the scheme or network settlement file. Nium provides you with the settlement file and the platform settles the overall transaction amount.

Nium supports three transaction authorization models:

• Hosted Model
• Delegated Model
• Extended Model

Hosted Model

The Hosted Model is nearly identical to the Extended Model with regard to Nium maintaining and managing your customer's balance and you being the final decision-maker when it comes to authorizing the transaction. The only difference between the Hosted and Extended models is that for the latter, Nium asks you what you want to do with the funds. With the Hosted Model, Nium makes all the decisions for you and holds all the funds.

Delegated Model

In the Delegated Model, the wallet balance is at your side. You're the final decision-maker when it comes to authorizing your transaction.

Nium performs a card verification and a balance check of your float or funding account during the transaction. Upon a positive result, you're involved in the decision-making process by validating the customer balance against the transaction amount and other rules that you might want to apply or check. If your system approves the transaction, Nium debits the float or funding source and responds to the card network.

Extended Model

In the Extended Model, Nium maintains and manages your customer balance while you're the final decision-maker when it comes to authorizing the transaction.

Nium performs verification of the card and also validates the customer balance during the transaction. Upon a positive result, you're 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 debits the wallet and responds to the card network.

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NOTE

The Nium One platform also lets you fund in multiple currencies. Nium applies its multicurrency authorization logic during the authorization request.

Model comparison — check types

The table below shows who performs the check types between the three models.

Model comparison — transaction types

The table below shows the transaction types that are sent to the client between the three models.

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Note

Transactions aren't sent to clients who opt for the Hosted Model.

Account Validation transactions aren't sent to clients who opt for the Extended Model.