Transaction , or transaction ( English bank transaction , from the Latin. Transactio - agreement, contract) - in general, any transaction using a bank account. There are online transactions that are performed in real time between all interested parties and offline transactions.
As a final part of a banking operation, a transaction can be initiated by submitting a written order to the bank, by electronic order through Internet banking systems or other communication systems, as well as with the help of some payment instrument.
Content
Conducting a transaction [1]
The most common case is a bank transaction for payment by a bank card in a trade and service enterprise. Such a transaction begins when the cardholder decides to pay for a product or service, and transfers the card (or pays for it himself) to the cash worker.
Through the POS terminal, in order to authenticate the holder, the card information from the terminal is transmitted to the acquirer bank servicing this terminal and having an agreement with the owner of the outlet. Depending on the agreements, the outlet pays the bank a fee for its participation in processing the transaction. [2]
Then the acquiring bank transfers information to the payment system that serves this card. There, the data gets to the operations center to which the banks participating in the payment system are connected. This center is checked for the presence or absence of payment card data in the stop list and, depending on the result, it refuses the transaction or it is approved with a further referral to the issuing bank that issued the card and servicing the bank account / accounts attached to it customer
Here it goes to the processing and authorization center , where advanced checks are carried out on the legality of the processed transaction. If you suspect fraud or violation of the terms of service is given a refusal. Depending on the card type ( debit or credit ) and the authorization priority set by the bank, this can check the available balance of funds in the account or the payment limit, as well as verify the holder's PIN . If all checks are satisfied, the issuer approves the operation and within the framework of the transaction, also through the payment system, the answer is given to the point of sale.
By mutual settlements with the payment system, the issuer transfers to the acquirer the amount of funds requested in the transaction, as well as the payment system commission for processing the transaction. [2] [3]
In turn, the bank deducts from the client's account the amount of money paid and confirmed by the client for payment (for debit cards) or reduces the available payment limit, thereby reserving part of the funds for subsequent debit (for credit cards). The transaction is completed at the time of receipt back to the sales point of response with approval or refusal.
Examples of similar transactions can be a set of actions when instructing a bank to transfer money from one account to another or cash withdrawal at an ATM (both with and without a bank card).
In an offline transaction, an operation can be carried out without contacting the acquiring bank and the follow-up verification measures. This is valid for card accounts where the bank’s available balance is pre-booked by the bank and information on the payment amount and card details remain in the memory of the POS terminal. Within the balance available to the card, funds are approved for debiting, but it happens much later after the terminal is connected to the communication channel and the accumulated information is transferred to the serving bank. In Russia, this payment method was available on the cards of the payment system SBERKART .
See also
- Secure electronic transaction
- ATM transaction
Notes
- ↑ On the example of the international payment system MasterCard
- ↑ 1 2 Rules and tariffs depending on the transaction Documents on MasterCard.com (Tested April 20, 2013)
- ↑ Tariffs and operating rules Archived May 23, 2013. "Integrated Settlement System" (Verified April 20, 2013)
Links and Sources
- “How does the transaction occur?” Description on MasterCard.com (verified April 20, 2013)