Authorisation of electronic fund transfer, Other Subject


EFT transactions necessitate communication between number of parties. When a card is applied at a merchant or Automated teller machine   (ATM), the transaction is first routed to an acquirer, then throughout a number of networks to the issuer where the cardholder's account is detained.

A transaction may be approved offline by several of these entities through a stand-in agreement. Stand-in agreement may be used when a communication link is not existing, or merely to save communication time or cost. Stand-in is subject to the transaction amount being below agreed limits, known as floor limits. These restrictions are calculated based on the possibility of authorizing a transaction offline, and therefore differ between merchants and type of card. Offline transactions may be subject to additional security checks such as inspection the card number against a 'hot card' (stolen card) list, velocity checks (preventive the number of offline transactions permissible by a cardholder) and random online authorization.

previous to online approval was standard practice and credit cards were processed using physical vouchers, every merchant would consent a limit ("floor limit) with his bank above which he must telephone for an approval code. If this was not carried out and the transaction consequently was declined by the issuer ("bounced"), the merchant would not be permitted to a repayment.

Posted Date: 10/13/2012 2:04:31 AM | Location : United States

Related Discussions:- Authorisation of electronic fund transfer, Assignment Help, Ask Question on Authorisation of electronic fund transfer, Get Answer, Expert's Help, Authorisation of electronic fund transfer Discussions

Write discussion on Authorisation of electronic fund transfer
Your posts are moderated
Related Questions
Matthew and Cindy McGee are calendaryear, cash basis taxpayers who are married filing jointly. Matthew is the custodial parent of his son, Jesse, from a previous marriage. The so

In the processing of the antibiotic streptomycin, the drug is purified to 50 wt% in water. For application, including IV drips, the streptomycin must be diluted and a preservative

When were these facts uncovered? How? By whom? What has the investigation entailed? 5. What is the current state of affairs? 6. Are there other similar cases? If yes, were they res

SECURIT Y CONSIDERATIONS Informatio n security is a way of protecting information and information systems from illegal use, disclosure, access, disruption, destruction or m

in what way is product strategy linked to product decision?

technological interconnectedness

Environmental Management: It is the procedure by which environmental health is regulated. It does not include managing the environment itself; however it is the procedure of takin

Variety of subjects: Roman painting provides an extensive variety of themes: animals, still life, and scenes from daily life, portraits, and some mythological subjects. Throughout

Grace Period A credit card's grace period is the time the consumer has to recompense the balance previous to interest is charged to the balance. Grace periods differ, but gener