Financial transaction

Card scheme transactions

A financial transaction is generated by the merchant after a successful authorisation. Financial transactions are used to settle the debt between the merchant and the issuer. The parties in the financial transaction flow are the same as in the authorisation flow. The merchant generates a batch of transactions that is sent to the merchant’s acquirer, who in turn forwards it to the card scheme (Visa or Mastercard) from where it is sent to the issuer or issuer’s processor.

The issuer will process the transactions and post them to the card accounts. In order to settle the debt, the issuer pays the needed funds to the card schemes that route the funds to the acquirer who in turns distributes them to the merchants.

Card scheme transaction processing at Enfuce

The card scheme transaction processing is a batch process that happens 0-6 times/day, depending on the card scheme. Visa sends files 1-2 times per day (depending on region) and Mastercard sends files 4-6 times per day (excluding Sundays). The card schemes have indicative schedules for the delivery but the exact times are unknown. As soon as the card scheme sends the file, Enfuce automatically starts processing the file. The processing includes:

Routing and posting each transaction to the correct card account
Posting transaction-related fees (when applicable)
Adjusting the available balance on the account

As soon as the processing is completed, all transactions will be visible through the Transaction API. Transactions will also be reflected in the Data export file the following day.

Card scheme transaction types

There are 12 different transaction types from the card scheme:

Transaction type	Description	Code in API (original/reversal)	Code Data Export Transaction file (original/reversal/adjustment)
Retail	Retail transaction	R1	R1-P / R1-R / R1-J
Credit	1. Purchase returns	K1	K1-P / K1-R / K1-J
	2. Original credit type transactions. A transaction that is crediting the cardholder’s card but there is no corresponding debiting amount.
Unique	Purchase (Unique MCC) – 4829 (Money Transfer) – 6050 (Quasi Cash Financial Institution) – 6051 (Quasi Cash–Merchant) – 7801 (Internet Gambling) – 7802 (Government Licensed Horse/Dog Racing) – 7995 (Gambling Transactions)	U1	U1-P / U1-R / U1-J
Cardholder Payment	Used in person to person money transfers – this is the crediting transaction, i.e. cardholder receives money.	T0	T0-P / T0-R / T0-J
Cardholder Debit	Used in person-to-person money transfers – this is the debiting transaction, i.e. cardholder sends money. For Visa, it is called Account Founding. (Proc Code = 10). For Mastercard, is called Funding Transaction (Proc Code = 00 (like Retail) but with specific MCC)	TA	TA-P / TA-R / TA-J
ATM	ATM withdrawal	A1	A1-P / A1-R / A1-J
Cash	Other type of cash withdrawal except ATM	C1	C1-P / C1-R / C1-J
Retail with cashback	Retail transaction with embedded cashback	B1	B1-P / B1-R / B1-J
Balance Inquiry	Balance inquiry from an ATM.	BQ	n/a
Change PIN at ATM	Change PIN request from an ATM	CHANGE_PIN	n/a
Cardholder Credit	Deposit Cardholder Account Credits	DP	DP-P / DP-R
Cash Dispense	Cash Dispense (Cardless) Debit	CB	CB-P / CB-R

Transaction-based fees

Enfuce supports the following transaction-related fees that the issuer can choose to charge. If set up, these fees are posted automatically by the system at the same time as the financial transaction is posted.

Fee	Description	Code in API (original/reversal)	Code Data Export Transaction file (original/reversal/adjustment)
Mark-up	Mark-up is a fee that is charged when the transaction currency is not the same as the card currency, a type of currency exchange fee. The fee is defined as a percentage of the transaction amount. Mark-up can be calculated for the following transaction types: Retail, ATM, Cash, Unique, CH Debit, Retail with Cashback. Mark-up is not calculated for CH Payment or Credit transaction types as those are crediting in nature.	MUP	MUP
Late fee	If the minimum amount of loan payment is not made by due date, late payment fee is charged.	LPF	LPF
ATM fee	ATM fee is a fee that is charged for each ATM transaction. The fee is a percentage and/or fixed fee.	A1F	A1F
Cash fee	Cash fee is a fee that is charged for each Cash transaction. The fee is a percentage and/or fixed fee.	C1F	C1F

Dispute transactions

During the dispute process, there are transaction types that are used to reimburse and re-charge transactions to your customer.

Transaction type	Description	Direction	Code in API	Code Data Export Transaction file (original/reversal)
Retail Reimbursement	Reimbursement is completed for the cardholder. It’s done as soon as the claim has been received and deemed valid. Each card scheme transaction type has a corresponding reimbursement transaction type. These transaction types are not used for any other type of reimbursement. Reimbursement is reversed if: – The cardholder revokes their claim. – If the cardholder is deemed responsible during the investigation. – The merchant credits the purchase after the reimbursement has been posted.	Credit	W1	W1-P / W1-R
Credit Reimbursement		Debit	W5	W5-P / W5-R
Unique Reimbursement		Credit	W4	W4-P / W4-R
Cardholder Payment Reimbursement		Debit	W0	W0-P / W0-R
Cardholder Debit Reimbursement		Credit	WC	WC-P / WC-R
ATM Reimbursement		Credit	W3	W3-P / W3-R
Cash Reimbursement		Credit	W2	W2-P / W2-R
Retail with cashback Reimbursement		Credit	WD	WD-P / WD-R
Write-off	Used when the customer claim is deemed valid, but initiating a card scheme dispute case is not economical or there is no chargeback right according to scheme rules. For example, disputes with low-value transactions where the chargeback costs more than the purchase amount to be reimbursed or if regulation like PSD2 deems the issuer responsible and there is no justification to request the merchant to reimburse.	Credit	WO	WO-P

API-triggered transactions

In addition to transactions from card schemes, Enfuce also supports triggering predefined transactions via the API. The transaction types available via API are:

Transaction	Description	Code in API (original/reversal)	Code Data Export Transaction file (original/reversal)
Top-Up	The top-up transaction is used to pre-load balance to the account. The API will first trigger an authorisation and then a financial transaction. Spend controls can prevent posting. Reversing a top-up is not allowed via the API. Erroneous transactions should be fixed by posting a Refund positive balance transaction.	TP	TP-P / TP-R
Refund positive balance	The Refund positive balance transaction is used when balance is returned to the customer. Example: When there is excess prepaid balance, the API first triggers an authorisation and then a financial transaction. Transaction posting is rejected if available balance is insufficient. Reversal of Refund positive balance is allowed via API. Note: For credit and charge products, these affect the balances as per the payment priorities.	RE	RE-P / RE-R
Payment to account	This transaction is used for customer payments done to a credit card account. For more information, see Customer Payments.	PT	PT-P
Account to account transfer	Debit transaction, used as the first step while transferring money from account to account. Transaction is always authorised to check account status and availability.	A2AD	A2AD-P / A2AD-R
Account to account transfer	Credit transaction, used as the second and the last step while transferring money from account to account. Transaction is always authorised to check account status and availability.	A2AC	A2AC-P / A2AC-R
Card to card transfer	Debit transaction, used as the first step while transferring money from card to card. Transaction is always authorised to check card status and availability.	C2CD	C2CD-P / C2CD-R
Card to card transfer	Credit transaction, used as the second and the last step while transferring money from card to card. Transaction is always authorised to check card status and availability.	C2CC	C2CC-P / C2CC-R
Lending debit	Charging transaction type utilised in a lending setup where the customer is charged for a witdrawn loan. Transaction is always authorised to check card status and availability.	CLD	CLD-P
Lending credit	Refunding transaction type utilised in a lending setup when a loan is revoked. Transaction is always authorised to check card status and availability.	CLC	CLC-P
Balance write-off	Balance write-off is used when the customer claim is deemed valid, but initiating a card scheme dispute case is not economical or there is no chargeback right according to scheme rules. Example: Disputes of low-value transactions where the chargeback costs is more than the purchase amount to be reimbursed or if regulation like PSD2 deems the issuer responsible and there is no justification to request the merchant to reimburse. Four balance write-off transaction types exist to separate write-off purposes.	BWO1, BWO2, BWO3, BWO4	BWO1-P, BWO2-P, BWO3-P, BWO4-P

Fee	Description	Code in API (original/reversal)	Code Data Export Transaction file (original/reversal)
Account Fees	Enfuce offers 5 separate Account level fees that the issuer can freely use: – Account Fee 1 – Account Fee 2 – Account Fee 3 – Account Fee 4 – Account Fee 5Fees are not authorised and will be posted even if there is no available balance.	AF1 AF2 AF3 AF4 AF5	AF1-P / AF1-R AF2-P / AF2-R AF3-P / AF3-R AF4-P / AF4-R AF5-P / AF5-R
Card Fees	Enfuce offers 5 separate Card level fees that the issuer can freely use: – Card Fee 1 (“CF1”) – Card Fee 2 (“CF2”) – Card Fee 3 (“CF3”) – Card Fee 4 (“CF4”) – Card Fee 5 (“CF5”) Fees are not authorised and will be posted even if there is no available balance.	CF1 CF2 CF3 CF4 CF5	CF1-P / CF1-R CF2-P / CF2-R CF3-P / CF3-R CF4-P / CF4-R CF5-P / CF5-R
Reimburse account fee	Crediting transaction that can be used to reimburse account fees.	AR	AR-P
Reimburse card fee	Crediting transaction that can be used to reimburse card fees.	RR	RR-P
Reimburse revolving interest	Crediting transaction that can be used to reimburse revolving interest (credit products only).	IR	IR-P
Reimburse overdue interest	Crediting transaction that can be used to reimburse overdue interest (credit products only) .	OR	OR-P

API-triggered transactions are posted immediately to the account/card and will impact the balance of the account by default. Transactions will also be reflected in the data export file the following day.

Event-triggered fees

Event-triggered fees are fees that are automatically triggered when a predefined event is triggered.

Fee	Description	Code in API (original/reversal)	Code Data Export Transaction file (original/reversal)
Fee for card lost	This optional fee can be automatically triggered when card is replaced due to it being lost (API: Update card → REPLACE_CARD)	M7 / m7	M7-P / M7-R
Fee for card production	This optional fee can be automatically triggered when card is being manufactured	MD / md	MD-P / MD-R
Reminder 1	Reminder 1 fee is triggered when reminder 1 is sent. You can define the amount of the fee during your implementation project. See the reminder and collection guide for further details on the reminder logic.	REM1 / rem1	REM1-P / REM1-R
Reminder 2	Reminder 2 fee is triggered when reminder 2 is sent. You can define the amount of the fee during your implementation project. See the reminder and collection guide for further details on the reminder logic.	REM2 / rem2	REM2-P / REM2-R
Paper invoice fee	This fee will be charged monthly if the invoice delivery is selected to be by paper (charge card product only)	PI	PI-P / PI-R
Revolving interest	Revolving interest is posted by the system at the end of the billing cycle (credit product). Reimbursements should be posted with the transaction type IR.	ILR3	ILR3
Overdue interest	Overdue interest is posted by the system at the end of the billing cycle (credit and charge card product). Reimbursements should be posted with the transaction type OR.	ILR6	ILR6
Instalment interest	Instalment interest is posted by the system at the end of the billing cycle (credit product).	AL29	AL29

​Card scheme transactions

​Card scheme transaction processing at Enfuce

​Card scheme transaction types

​Transaction-based fees

​Dispute transactions

​API-triggered transactions

​Event-triggered fees