Pin Debit Networks

Question 1

Dual Message Systems

Answer 1

They separate the authorization from the clearing

• Authorization is a real-time message
• Financial captures are processed in large batch files a few times per day per scheme

Question 2

Dual Message - Cancel the Authorization

Answer 2

You can cancel the authorization without having the refund in the case of an accidental charge or inability to fulfill an order

Question 3

Dual Message - Auth Adjust

Answer 3

You can adjust the amount to capture a higher amount, like with adding a tip in a restaurant

Question 4

Dual Message - Validation

Answer 4

Often when a shopper adds a card on a merchant site, say for a subscription, the merchant will send a $0 or $1 validation authorization to check that the card is legitimate. They then either cancel or let that authorization expire

• If it were a Single Message, they would have to refund that transaction and the shopper would see the $1 charge on their statement
• While the cardholder may see the authorization hold, canceling the authorization should release the funds more quickly than a capture request followed by a refund

Question 5

When do online merchants often clear the transaction?

Answer 5

When the parcel is shipped.

Why?
This helps protect against scenarios where the item becomes out of stock

Question 6

Single Message System

Answer 6

The transaction directly enters the clearing process upon real-time authorization

Question 7

2 Main Ways A Debit Card Can Be Processed

Answer 7

1. Signature
2. PIN-based

Question 8

PIN-Based Transaction

Answer 8

• When customer enters PIN
• Causes the transaction to route through the debit network instead of the credit card network
• It routes the transaction to the regional debit networks

If you are using a Visa Debit card from Bank of America, when it runs on the VisaNet ‘Credit’ network, the Interchange is higher, whereas, in the ‘Debit’ mode running on the Interlink network, the Interchange will be lower

• This is considered a Single Message transaction

Question 9

EMV

Answer 9

EMV stands for Europay, Visa & Mastercard

Question 10

EMV Definition

Answer 10

EMV is a payment technology that uses a tiny, powerful chip embedded in credit and debit cards to make card transactions more secure

• It is this chip, and not the magnetic stripe (magstripe) on the back of the card, that transmits payment data to the card reader during a transaction

Question 11

EMV Encryption

Answer 11

they generate a unique code for every purchase and send that code to the business’s card reader

Question 12

Are PIN Debit Transaction single or dual message?

Answer 12

Single Message

Question 13

Are signature debit transactions single or dual message?

Answer 13

Dual Message

Question 14

CVV and CVC

Answer 14

• Cards security code
• Intended to be used in CNP (online) transactions to verify the cardholder
• This code cannot be stored under PCI standard
• It cannot be hacked if it is never stored

Question 15

PAN

Answer 15

16 digit Primary Account Number

Question 16

BIN

Answer 16

Bank Identification Number