A credit card transaction can seem simple on the surface, but once you start accepting payments online, you can quickly become confused with all of the transaction specific terms. On this page, we will introduce you to the different terms and explain the lifetime of a transaction.
An authorization (also referred to as a reservation) of a transaction is the first step in the lifetime of a transaction. When we authorize a transaction we ask the cardholder’s bank (issuing bank) if we can reserve the transaction amount on the card. You can charge your customers in any currency.
From the issuing bank, we get a message of either success or failure to reserve the amount.
If we get a failure message, we also receive an error code explaining the reason. Depending on the issuing bank we receive different error codes. Here are some common errors on authorizations:
Failed transactions will not show in your Paylike dashboard, but can be pulled from our API.
If we get a success message from the issuing bank, we have the following possibilities for the transaction:
An authorized transaction is valid for 30 days whereafter it expires and automatically becomes void. You can void and capture payments directly in your Paylike dashboard, through most of our plugins and via the API.
To void a transaction means to cancel the authorization and remove the reservation of the money on the cardholder’s account. A transaction can either be partial or fully voided in Paylike.
Once you have voided a transaction amount, you can not capture it again.
You should void a transaction if the transaction is not to be captured, e.g. in the case that the customer cancels the order before you have shipped it.
To capture a transaction means to move either a partial or the full amount of the authorized transaction from the cardholder’s account to your Paylike account. You can never capture more than the authorized transaction amount.
You should capture the transaction once you have delivered the sold goods or service to the customer.
Depending on your settlement and reserve terms, the captured transaction will be settled (transferred) from your Paylike account to your designated bank account on a fixed schedule. A settlement includes all the captured transactions within a given period.
Most merchants receives a settlement once a week.
Anytime, typically maximum 14 months after the capture, you can receive a dispute (chargeback or retrieval request) on a captured transaction. The cardholder can initiate a dispute for many reasons, among them are: