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Registered: ‎08-01-2013
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Response Code 4: What kind of Hold is performed?

[ Edited ]

Hello everyone,

We have it configured so a receipt is displayed to the user when the response code is a 1. We are debating over whether to display a receipt when a response code is a 4. What type of hold occurs when the response code is a 4?

 

Are the funds already transferred from the customer to the merchant and being held by the merchant waiting for a 'Capture' like how the transaction type 'hold' works, or does the customer still hold the funds and just the transaction itself is waiting for an approval by the merchant? The reason being is we don't want to display a receipt to the user if money hasn't even exchanged hands yet.

 

Also, we are looking at ways that the response code 4 could be reproduced. So far we see that if the Address Verification fails a response reason code 253 is returned. What other ways could a response code 4 be returned and are all those ways already guaranteed to have the money in the merchant's hands?

 

Thanks,

Matt


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Accepted by topic author lightwave365
‎08-21-2015 01:58 AM
Posts: 1,609
Topics: 15
Kudos: 201
Solutions: 121
Registered: ‎06-23-2011

Re: Response Code 4: What kind of Hold is performed?

There are several steps here. There is authorization, which checks if the charge is possible - as in if there is sufficient balance in the account. Then there's capture, which actually initiates a charge, and settlement, which runs once per day and is when the money gets put into your account.

 

In this case, the transaction will be authorized but not captured, which means the money will be reserved but not actually charged. You will have to either manually approve the transaction or void it (don't want to reseve the customer's money for 30 days and make it unusable...).

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Registered: ‎03-08-2010

Re: Response Code 4: What kind of Hold is performed?

Regular Contributor
Posts: 55
Registered: ‎08-01-2013

Re: Response Code 4: What kind of Hold is performed?

[ Edited ]

That doesn't exactly help me. I see this in his reply: "the transaction will authorize as normal". What does that mean? The money will leave the customers hands and go into the merchant's hands and then be put on hold? Like it normally would for the transaction type "HOLD"?

 

My last question about how these response codes are reproduced wasn't answered in that post as well.

Solution
Accepted by topic author lightwave365
‎08-21-2015 01:58 AM
Posts: 1,609
Topics: 15
Kudos: 201
Solutions: 121
Registered: ‎06-23-2011

Re: Response Code 4: What kind of Hold is performed?

There are several steps here. There is authorization, which checks if the charge is possible - as in if there is sufficient balance in the account. Then there's capture, which actually initiates a charge, and settlement, which runs once per day and is when the money gets put into your account.

 

In this case, the transaction will be authorized but not captured, which means the money will be reserved but not actually charged. You will have to either manually approve the transaction or void it (don't want to reseve the customer's money for 30 days and make it unusable...).