Credit/Debit Card Transaction Process

Credit/Debit cards Handling in POS Application Software's used : Pincomm & Saftor API : API provided by ISD Corporation to interact with Payment Switch Hardware devices : Pinpad device, Cherry keyboard In POS application we are accepting cards in two ways which were swiped and keyed transactions respectively. In swiped transactions Guest has to swipe his card in pin pad device or through cherry keyboard. In manual/keyed transactions Guest has to provide his card details like credit card number, cvv, expiry date, address, zip code by entering all these details in POS application store user can complete the transaction. Keywords in the document: Pinpad Device: A device which is having slot to swipe the card, if the swiped card is debit card needs to enter the pin number also so it will have keys to enter numbers also. Cherry Keyboard: A keyboard which will have a slot to swipe the cards. Java Switch/Cobol Switch: Is a Linux machine and we will place the settlement file in the specified location from there some processes will pick the file and sent the file to the banks in order to process the amounts. Mod 10 Check (LUHN Algorithm): Is an Algorithm and every card number should follow this algorithm, so whenever user enters the card number we will validate the card number against this algorithm. Bin Range: For each card type either visa/master/American express etc some bin ranges specified, so every card type should fall under these Bin Ranges. For example Visa card numbers should start with 4 and it should contain 16 digits in length, Master card numbers should start with 5 and it should contain 16 digits in length etc.

High Level Architecture:

Credit/Debit Card Transaction Process

Different message types which we are supporting in POS Application 1. 2. 3. 4. 5. 6. 7. CCP: Credit card purchase DCP: Debit card purchase CPV: Credit card purchase void CCR: Credit card return CCK: Credit card keyed (manual) DCReversal: Debit card reversal CK : Check request

CCP: Credit card purchase which is swiped transaction by selecting credit option in pin debit device. In this transaction guest need not provide any information related to his credit card. After guest swipes his card and confirms the amount we will check whether guest swiped correct credit card against the payment type, for example if he selects Visa payment type in this case we will check whether he swiped Visa card or not based on the Bin Ranges. If not we will throw an error message to the guest to swipe the correct credit card. If guest swipes correct card then built the request and send to payment switch, based on response from payment switch we will treat the transaction as success or failed transaction. DCP: Debit card purchase which is swiped transaction by selecting debit option in pin debit device. In this transaction guest need not provide any information related to his debit card. After guest swipes his card he needs to enter pin number of the debit card after confirming the amount we will check whether guest swiped correct debit card against the payment type, for example if he selects Visa payment type in this case we will check whether he swiped Visa card or not based on the Bin Ranges. If not we will throw an error message to the guest to swipe the correct debit card. If guest swipes correct card against the payment type then we will built a request and send to payment switch based on response from payment switch we will treat the transaction as success or failed transaction. CPV: Credit card purchase void, if guest wants to return the transaction on the same day we will built the request by using original credit card details, original request details used in the original transaction and sent to payment switch as void request. Based on the response from payment switch we will treat the transaction as success or failed transaction. If the

Credit/Debit Card Transaction Process

sale and return was happened on the same day with same amounts we will not load the sale amount into settlement file. If the sale and return was happened on the same day with different amounts we will load the entry into settlement file with the difference amount. CCR: Credit card return, if the transaction is returning on different day other than sale day we will treat that as credit card return. In this case based on the given account number we will return the money to the account. Guest can provide the account number in both ways by swiping his card and providing the card details in the application directly without swiping his card. CCK: Credit card keyed or manual which is keyed transaction means guest has to provide his card details like credit card number, cvv, expiry date, address, zip code in the application. Once guest enters the credit card number we will check whether he entered correct account number against payment type using Bin Ranges, if not we will throw an error message. If guest enter his correct card against the payment type then we will check whether the credit card number is valid or not by using mod10 check (LUHN Algorithm). Every card number should follow this mod 10 check. If entered card number is not valid we will throw an error message otherwise we will build the request and send to payment switch. Based on the response from payment switch we will treat the transaction as success or failed transaction. DCReversal: Debit card reversal, if we receive timeout response when we are processing debit cards then SAFTOR (Store and Forward Time Out Reversal) system sends the reversal request automatically to the payment switch. When debit card request hits the payment switch immediately it holds the money and not available in guests account to use it, so when we receive timeout response SAFTOR sends the reversal request and releases the money back to guest account. In all the above cases if the payment switch is down we will do the transactions in offline mode which means store users call to the bank and get Authorization code, then store users enters the authorization code in the system and completes the transaction in offline mode without hitting the payment switch. Different card types which we are supporting in POS Application 1. 2. 3. 4. 5. Visa Master Card American Express Novus (Discover, Diners Club) In-House

We are supporting Check payments also in POS Application

General Procedure in cards processing POS Application accepts the cards in 2 ways which were swiped and keyed/manual

Credit/Debit Card Transaction Process

transactions.

1. We will decide whether the transactions are swiped or keyed transaction based on

2.

3.

4.

5.

the provided information. If guest is not providing his card details in the application then the transaction is swiped transaction, if guest provided all the card details (card number, expiry date, cvv, address, zip code) then it is keyed/manual transaction. In swiped transactions store user will provide card type (visa/master/American express/novus/in-house) and payment amount. After submitting the transaction first request goes to the pinpad device waits for the guest input (to swipe the card), once guest swipes the card pinpad device asks whether the card is Debit or Credit if he presses Debit card then it asks for pin number of the debit card then it gives the confirmation box with the payment amount, if guest selects credit card then displays the amount confirmation box. If guest selects yes then request goes to payment switch, based on the response from payment switch we will process the transaction either as success transaction or treats the transaction as failed transaction. If guest selects no button in amount confirmation box then we will display the user with error message like transaction failed because of user cancellation. In Keyed transactions guest provides all the card details like credit card number, cvv, expiry date, address, zip code. By default all the keyed transactions will be treated as credit card transactions. By using all the information provided by guest we will send a request to payment switch based on the response from payment switch we will process the transactions as either success transaction or failed transaction. In both swiped transactions and keyed transaction if we get proper response from payment switch (APPROVAL) we will receive authorization code as well from payment switch. Every day night Store users will generate settlement file for all the successful transactions which were done on that particular day and the settlement process will upload the file to Java switch or COBOL switch. All the transactions which were not InHouse card type transactions will be uploaded to java switch (Visa, Master Card, American Express, Novus card transactions). All Inhouse card type transactions data will be loaded into COBOL Switch.

Credit/Debit Card Transaction Process

Process flow in swiped transactions Vs keyed transactions

Card transactions using cherry keyboard: If pin pad devices are not working at the stores then store users will do the transactions using cherry keyboard which will have slot to swipe the card, when user swipes the card, automatically credit card number and expiry date will be placed into respective fields in the application. Then users will complete the transaction as swiped transaction.