140
141
CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
Exception Processes
Set-Up/Operations
Decline
When an issuer rejects a transaction authorization request for reasons such as suspected fraud, account credentials being out of date, transaction attributes (i.e. CVV, AVS) not matching the expected data points When a merchant attempts to resend a declined transaction for authorization When a customer requests funds to be returned When an item or service is returned and funds are refunded to the customer When a cardholder (i.e., fraud or goods not received) or issuer (i.e., technical error) challenges a transaction. Common chargeback reasons include fraud, goods not received, and technical errors.
Merchant Identification # (MID)
Unique merchant account numbers (or business units within a merchant) used to set-up payment processing. When a merchant either directly or via an acquirer stores a customer payment credential for reuse in its shopping environment. When a merchant directly tokenized card or other customer account details within their operating environment When an acquirer tokenizes payment credentials (card and other MoPs) as a service for merchant clients and issuer processors. When a payment network generates a token affiliated with a Primary account number (PAN) for use in payment transactions. EMV 3DS is a set of specifications designed by EMVCo that “provide a common set of requirements” to “support seamless and secure” ecommerce payments. In particular, 3DS focuses on multi-factor authentication. For more information see: EMV® 3-D Secure | EMVCo. PINless is the way U.S. merchants can route transactions via domestic debit networks without the customer typing in a PIN at the POS. This has not been widely available for merchants, as discussed in Section 5.
Card-on-File (CoF)
Retry
Merchant tokenization
Refund
Return
Acquirer tokenization
Chargeback
Network tokenization
3D Secure (3DS)
PINless Debit
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