FasCard Credit Transaction Processing

FasCard credit/debit transaction chain

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Transaction Phases

Phase 1 - Laundry customer

The first step in the credit/debit card transaction chain is for a laundry customer to make a purchase using their credit or debit card. The customer's purchase information is then transmitted from the customer's card to the FasCard system.

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Phase 2 - FasCard payment system

The FasCard system receives the information from the customer’s card and requests a Pre-Authorization for a preset amount (also known as an Authorization Hold. This amount can be configured on the FasCard Admin Site - Server Management page). The Pre-Authorization request is then transmitted from FasCard to the Gateway processor.

Phase 3 - Gateway processor

This process involves the Gateway processor acting as the intermediary between the FasCard system and the Merchant processor. The Gateway processor receives the payment information from the FasCard system, which then forwards this information to the Merchant processor for further processing.

Phase 4 - Merchant processor

Once the gateway has given the transaction information to the Merchant processor, the Merchant processor will then reach out to the appropriate credit card network (MasterCard, Visa, AMEX, etc.).

Phase 5 - Credit card network/issuing bank

The credit card network receives the Pre-Authorization information from the Merchant processor and directs it to the card-issuing bank, which responds with either an approval or decline message. If approved, the issuing bank will place a hold on the appropriate funds and send that information to the credit card network. Once the Pre-Authorization hold is approved, the transaction information is sent back up the chain to the Merchant processor, which then passes through the Gateway processor and onto the FasCard system, permitting the transaction to be completed.

Phase 6 - FasCard system

Once the FasCard system receives the transaction information for the Pre-Authorization it will allow the vend start to be fulfilled. Once all in-store transactions are finished (this can be controlled by the idle time setting on the FasCard Admin Site - Server Management page), the FasCard system transmits the captured total for all transactions to the Gateway processor. This information is then transmitted across the same transaction chain outlined above.

Phase 7 - Issuing Bank / Merchant Bank

Once the customer has concluded their transactions the issuing bank sends the appropriate funds to the credit card network, which is then passed to the merchant bank through the Merchant processor. The issuing bank will release any remaining differences between the transaction total and the Pre-Authorization held back from the laundry customer’s account.

Declined credit cards

Credit cards that have been declined are locked out of the system for two minutes to prevent repeated merchant transaction fees. During the lockout period, the end user will receive the same "Card Declined" message that was originally generated.

Offline credit card processing

Following FasCard Release 14, offline credit processing is available for operators that elect to offer it.  This allows laundry customers to use credit cards when the FasCard satellite is unable to reach the FasCard servers due to an internet outage. This requires an evaluation of risk and reward as these transactions are essentially delayed – the credit card is effectively accepted 'on good faith' that transactions will clear once satellite connectivity is restored.  This amount may be limited by the operator using the FasCard Admin Site - Server Management page. Feature availability may be limited to specific firmware; contact Technical Support for more information.

Transaction processing logic

FasCard utilizes Pre-Authorization as a method to batch smaller transactions and reduce transaction fees for the operator/owner. Two different modes use this Pre-Authorization method and are described below. 

Pre-Authorization Only mode

This is the default mode when the system is initially configured. When this mode is selected, the customer has a Pre-Authorization hold amount put on their credit card.  Once the customer has met the Pre-Authorization hold amount (or once the designated idle time is reached), the card is charged (captured) for the amount used, and the remaining funds (if any) are released. See Authorization Hold Description for more information on this practice.

A scenario of how this operates is outlined below:

1. An operator/owner has a Pre-Authorization amount configured for $20.00.  

2. The customer swipes the credit card with a max possible transaction price is $9 (base cycle cost) + $3 (cost of all possible adders)=$12.

   1. Pre-Authorization #1 is issued for $20.

   2. The customer purchases wash only ($9) and has $11 remaining on Pre-Authorization.

3. Card swiped, max possible transaction price is $9 (base cycle cost) + $3 (cost of all possible adders)=$12.

   1. The maximum possible cycle cost exceeds the amount available on Pre-Authorization #1, so Pre-Authorization #2 occurs for $20.00.

   2. The retail user purchases wash only ($9) and has $2 remaining on Pre-Authorization #1 and $20 remaining on Pre-Authorization #2.

4. The retail user makes no further purchases - Pre-Authorization #2 for $20.00 is voided.

5. The retail user statement shows one transaction for $18.00.  

Test and Trust Mode

When this mode is selected, the customer's card is temporarily charged a pre-set amount of $0.29 to test that the card is valid. If the test is successful, the $0.29 is voided and the customer can now spend up to the designated Trust Amount (see below). If this "Trust" amount is not reached, then after the designated Idle Time the card is charged (captured) only for the amount they used. If the "Trust" amount is reached or exceeded, then the customer is charged the $0.29 again and, if successful, can spend up to the "Trust" amount again in the next set of transactions. If the charge fails, FasCard will retry the charge at a lower amount. 

Following are several scenarios describing the "Test and Trust" logic.  For these scenarios assume the owner has set a max trust to $40 and idle time to 2 hours.

Successful Capture Scenarios:

1. Scenario 1:

   1. Customer swipes the card, $0.29 pre-auth is approved and voided, customer can now spend up to $40

   2. The customer spends $32.00, 2 hours pass, and the customer card is charged $32.

2. Scenario 2:

   1. Customer swipes the card, $0.29 pre-auth is approved and voided, customer can now spend up to $40

   2. Eventually, the customer attempts a purchase that would push him over the $40 limit

      1. FasCard attempts to capture the amount spent so far, and if successful then creates a new 'test-and-trust' authorization that allows an additional $40 to be spent

   3. 2 hour expires, the 2nd 'test-and-trust' authorization is then captured.

Failed Captured Scenarios:

1. Scenario 3:

   1. Customer swipes the card, $0.29 pre-auth is approved and voided, customer can now spend up to $40

   2. Customer spends $32.00

   3. 2 hours pass, and the customer card gets declined the $32 charge

      1. FasCard decrements the $32 charge by $3 and retries

         1. If successful, the store owner loses $3 but recovers $29

         2. If the $29 fails, FasCard decrements the charge by another $3 and retries

      2. If the decreasing attempted charge falls below $5 FasCard stops retrying and the store owner loses the full amount of $32

2. Scenario 4:

   1. Customer swipes the card, $0.29 pre-auth is declined

   2. FasCard then reverts to pre-auth-only logic for this credit card (for the rest of the day); any subsequent swipes of the card must be pre-authorized for the specified amount before transactions will be accepted

3. Scenario 5:

   1. Customer swipes the card, $0.29 pre-auth is approved and voided, customer can now spend up to $40

   2. Eventually, the customer attempts a purchase that would push him over the $40 limit

      1. The server attempts to capture the amount spent so far, but this is declined

      2. The server repeatedly attempts to capture smaller amounts until some amount is accepted or the server gives up

   3. FasCard then reverts to pre-auth-only logic for this credit card (for the rest of the day)

The FasCard system remembers a trusted card for about 24 hours after the capture; if someone comes back within this period then the system will see that the card is still trusted, and will immediately authorize up to $40.  After these 24 hours then the system will need to pre-auth the $0.29 again before it will trust the card again.

FasCard will remember a card that fails to capture - essentially one that cannot be trusted – for 7 days.  If the card is re-swiped during that time then FasCard will revert to the original 'pre-auth & hold' logic when authorizing the card. 

Credit card surcharge

Owners can charge an additional amount for using a credit card on machines. 

The credit card Surcharge occurs at the time of the credit card capture and will appear on the Sales reports. See Credit Card Captures and Transaction Cut-Off Time for more information on the capture process.

The Scenario below describes when the Surcharge is applied.

1. Customer swipes a card on the machine

   1. A pre-Auth of $20.00 is held.

   2. Customer uses 2 machines at $1.00 each = $2.00 total

   3. Idle time of 2 hours passes and the customer does not swipe the card again.

   4. The capture is a total of $2.00 and at this time, the surcharge is added (Whatever % is set, example 10%)

   5. The total amount the customer is charged is $2.20 

Credit card discount

Owners can also use the Surcharge field to give a discount to customers for using a credit card.

By entering a negative amount in the credit card Surcharge field, for example -10%, the customer will receive a 10% discount on the amount of money spent by using their credit card.  This feature can be used to encourage customers to move away from coin and cash transactions.

The Scenario below describes when the discount is applied.

1. Customer swipes the card on the machine

   1. A pre-Auth of $20.00 is held.

   2. Customer uses 2 machines at $1.00 each = $2.00 total

   3. Idle time of 2 hours passes and the customer does not swipe the card again.

   4. The capture is a total of $2.00 and at this time, the discount is applied (Whatever -% is set, for example -10%)

   5. The total amount the customer is charged is $1.80

Additional information

• Authorize.Net Credit Card Process Description

• Credit Card Captures and Transaction Cut-Off Time

• Authorize.Net Credit Processing Gateway Fees and Procedures

• How-to Format VAR Sheet(s) for WorldNet Payments Gateway