B1 Debit, credit and prepaid
Needs: Supporter
Where the money comes from, single vs dual message, CVMs, account selection, refunds, partial approval and disputes.
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What this module covers
You will be able to
- Compare debit, credit and prepaid by funds, message model, CVM, refund, partial approval and disputes
- Choose single or dual message
- Explain account selection
- Describe the regional debit differences
The lesson
- Why it matters
- The concept
- Regional notes ⚠
- In the real world
- Common mistakes
- What to test
In the module
- The lesson, with diagrams, common mistakes and what to test
- A worked example you can change: When the money moves: credit, debit and prepaid
- Practice: 3 kinds of generated exercise, each with a step-by-step solution
- A quiz of 9 questions
Key terms
- Account selection
- The cardholder's choice of chequing, savings or credit, carried in the from-account digits of the processing code.
- Cashback
- Cash given with a purchase. The total in field 4 includes it and the cashback part goes in field 54; field 3 starts with 09.
- Credit card
- A card on a credit line repaid later. Usually processed as dual message: authorisation first, clearing later.
- CVM (Cardholder verification method)
- How the cardholder is verified: online PIN, offline PIN, signature, consumer device CVM or no CVM.
- Debit card
- A card that takes money straight from a current or savings account. Usually verified by PIN and processed as a single message.
- Dispute
- A cardholder's challenge of a transaction with their issuer. It may lead to a chargeback through the network.
- Dual message system (DMS)
- Processing with an authorisation message (0100) to approve and a separate clearing record to post the amount. Typical of credit cards.
- Offline PIN
- A PIN checked by the chip card itself, sent in plain text or encrypted with the card's public key. The issuer learns the result in the chip data.
- Online PIN
- A PIN encrypted in a PIN block at the PIN pad and checked by the issuer (or its HSM) during authorisation.
- Open-to-buy (Available credit)
- The part of a credit limit not used by posted transactions and open holds.
- Partial approval
- An approval for less than the requested amount (for example the balance of a prepaid card). The terminal must collect the rest another way or reverse it.
- Prepaid card
- A card loaded with funds in advance, such as a gift or payroll card. It behaves like debit, but the funds sit in a prepaid account.
- Regional debit network
- A national or regional PIN debit scheme with its own rules and message variants. Its specific values are marked network-specific in this training.
- Single message system (SMS)
- Processing where one financial message (0200) both approves the transaction and posts it for settlement. Typical of PIN debit and ATM networks.
The lesson, worked example, practice and quiz open with a supporter pass, which you can try free for 7 days.