Payment Status Definitions

Transcription

1 Corporate Gateway Payment Status Definitions V5.2 October 2015 Use this guide to: See the different statuses a payment can be given during its life cycle

2 Payment Status Definitions > Contents Contents 1 About this guide Audience Changes to the guide Copyright 5 2 What are payment statuses? 6 3 The Payment Process Orders without a payment status Credit card example 7 4 Payment status life cycle 9 5 Payment status definitions SIGNED_FORM_RECEIVED SENT_FOR_AUTHORISATION AUTHORISED REFUSED CAPTURED ERROR CANCELLED CHARGED_BACK SETTLED SETTLED_BY_MERCHANT SENT_FOR_REFUND REFUNDED REFUNDED_BY_MERCHANT REFUND_FAILED EXPIRED INFORMATION_REQUESTED INFORMATION_SUPPLIED CHARGEBACK_REVERSED DISPUTE_EXPIRED DISPUTE_RESERVE_RELEASED DISPUTED_FUNDS_HELD 14

3 Payment Status Definitions > Contents 5.22 DISPUTED_FUNDS_RELEASED 14 6 Special payment statuses Alternative Payment Method payment statuses Merchant related payment statuses Other payment statuses 15

4 Payment Status Definitions > 1 About this guide 4 1 About this guide This guide describes our payment processing model and the different statuses a payment can obtain during its life cycle. Where applicable, this guide provides links to other documentation with further details. Worldpay does not take responsibility for an external link's operation or content. 1.1 Audience This guide is aimed at Corporate Gateway merchants and their technical staff, or a merchant's system integrator. Because almost all communication between the merchant's system and our payment service uses predefined XML messages over the Internet employing standard protocols, you will need basic XML programming skills and knowledge of HTTP(S). 1.2 Changes to the guide Version Change Description Date Affected Pages 5.2 Transferred to Madcap Flare October 2015 All 5.1 Added descriptions of additional payment statuses July 2014 Payment Status Definitions 5.0 Worldpay rebrand June 2014 All pages 4.2 Reference to Incasso payments removed. 4.1 Alternative payment method statuses added. 4.0 Gateway and guide name added to navigation path February 2014 May 2012 December 2011 Payment Status Definitions Alternative Payment Method payment statuses All pages 3.0 Worldpay rebrand July 2011 All pages Table 1: Changes to this guide

5 Payment Status Definitions > 1 About this guide Copyright Worldpay All rights reserved. This document and its content are confidential and proprietary to Worldpay and may not be reproduced, published or resold. The information is provided on an AS IS basis for information purposes only and Worldpay makes no warranties of any kind including in relation to the content or suitability. Terms and Conditions apply to all our services. Worldpay (UK) Limited (Company No: / FCA No: ), Worldpay Limited (Company No: / FCA No: ), Worldpay AP Limited (Company No: / FCA No: ). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activities. Worldpay, the logo, and any associated brand names are all trade marks of the Worldpay Group of companies.

6 Payment Status Definitions > 2 What are payment statuses? 6 2 What are payment statuses? The life cycle of a payment processed by our Payment service is characterised by the different events that mark a change in the status of the payment. These events and the resulting changes in payment status play a crucial role in the payment process. All financial reporting depends on the actual payment status and any possible payment action, whether performed by the merchant, the financial institution or by the payment system.

7 Payment Status Definitions > 3 The Payment Process 7 3 The Payment Process Before a payment can be made by our Payment service, the details of the corresponding order must be stored on our system. The way order data is delivered to Worldpay depends on the integration method you use. For more information, see: XML Direct Integration Guide XML Redirect Integration Guide Order Modifications and Inquiries Guide We send the payment details to the financial institutions (acquirers) for authorisation. When the response from the financial institutions has been processed, the order is given a payment status and a payment id. This is what we refer to as a payment: an order with a payment status. 3.1 Orders without a payment status In the Redirect Model, when a shopper does not complete the process of selecting a payment method and supplying the required payment details, the order does not obtain a payment status; however, the order will be visible in the Merchant Interface. Your back-office system(s) should be able to interpret these orders without payment status correctly. Orders without a payment status do not expire in the Worldpay system and cannot be removed from the database. In other models, the merchant must obtain both order and the payment details. The payment details are then sent with each order to us for processing. 3.2 Credit card example The payment process starts when all the payment details (bank account or credit card details) of the shopper have been received by our payment service. Below you find a description of the typical payment process for a credit card payment: 1. Worldpay sends the payment details to an acquirer for authorisation. 2. The acquirer authorises or refuses the transaction, or contacts the issuing bank for an authorisation. 3. The result of the authorisation request is sent back to the payment system. 4. communicates the result to your system and you inform the shopper. 5. If the payment is refused you can allow the shopper to try again using a different card or payment method. Please note that if you use the Redirect Model, the shopper will be redirected by the FailureURL to the page that explains that the payment has been refused. If you want to allow the shopper to make a further attempt to pay, you must configure your system to resubmit the shopper's order again, for instance by providing a link back to the payment selection screen. 6. The payment status of the order is set to REFUSED. 7. If the payment is authorised, the payment status of the order is set to AUTHORISED. 8. After a predefined period of time (the capture delay), or after receiving a capture message from

8 Payment Status Definitions > 3 The Payment Process 8 your system, Worldpay instructs the financial network to transfer the money from the cardholder. The payment status of the order is set to CAPTURED. You can change the capture delay in the Profile page of the Merchant Interface. Depending on your contract details the money is transferred either to Worldpay or to your bank account. 9. If the money is transferred to one of Worldpay s bank accounts it is reconciled (matched) to the corresponding order. Reconciliation is also possible in case you have a specific service level with Worldpay where the money is directly transferred from the financial network to your bank account. 10. After reconciliation, the money is transferred to your bank account. The payment status of the order is set to SETTLED. This is unless your Service Level Agreement (referred to as a C Level Service Agreement) with Worldpay specifies that money is directly transferred from an acquirer to your bank account, in which case the order is set to the payment status of SETTLED_BY_ MERCHANT. 11. For further information about payment statuses specific to merchants with a C Level Service Agreement, please refer to Merchant Related Payment Statuses. The Worldpay system reports the changes to the payment status of an order through a number of methods. For more information, refer to the Order Notifications - Reporting Payment Status Changes Guide for an overview of the different reporting mechanisms and details of the method called "order notifications".

9 Payment Status Definitions > 4 Payment status life cycle 9 4 Payment status life cycle The diagram below shows the typical flow of a payment through the different payment statuses. These payment statuses are described in the next section. Other payment statuses that may occur in certain special cases are described in Other payment statuses. Figure 1: The typical flow of a payment through the different statuses in the Worldpay Payment service. The dashed box represents the life cycle of a successful on-line payment.

10 Payment Status Definitions > 5 Payment status definitions 10 5 Payment status definitions This is a list of the various payment status names, and a description of what each payment status name means. 5.1 SIGNED_FORM_RECEIVED This status is only applicable to unsigned direct debit payments, available for selected merchants only. For these payment methods, Worldpay receives, by fax or by conventional mail, a physical standing order form (to be printed by the shopper during the payment process) with the shoppers' signature. After the payment details are submitted to the system, the payment request is sent to the banks for further processing. This status is a confirmation of Worldpay's receipt of the payment details. It does not assure a successful payment since the automatic debit action can fail, for instance in the case of insufficient balance. 5.2 SENT_FOR_AUTHORISATION This status means the payment is sent to the financial institution and awaits a response. Depending on the response, the subsequent status can be AUTHORISED, REFUSED, CAPTURED or ERROR. When a payment has the status SENT_FOR_AUTHORISATION no new payment attempt can be performed for the corresponding order. 5.3 AUTHORISED Status AUTHORISED means that the financial institution has approved the payment. For on-line payment methods, such as credit cards, this payment status is obtained directly after the relevant payment data are sent to the financial institution. Provided, of course, the payment is authorised. Payments performed through bank transfer or other off-line payment methods reach the status AUTHORISED in an off-line stage. In the case of a credit card payment, the amount is "reserved" for you and will be deducted from the shopper's spending limit, but is not actually transferred yet. In the case of bank transfers and some other payment methods, the payment immediately obtains the status CAPTURED after being set to AUTHORISED. Worldpay informs your system of the authorisation so you can commence shipping the ordered goods. In case of credit card payments the authorisation remains valid up to a maximum of 28 days. 5.4 REFUSED Status REFUSED means the financial institution refused to authorise the payment. Possible reasons for refusal are: an exceeded credit limit, an incorrect expiry date, insufficient balance, or many other depending on the selected payment method. Worldpay is not always informed of the refusal reason by the financial institutions. When Worldpay does receive a reason for refusal, this is visible to you in the Merchant Interface. For merchants who have their own connection number (account) with an acquirer a refusal reason REFERRED can be supplied. In such a case you can contact the respective financial institution to check the particular order and possibly obtain an authorisation code. You can use an authorisation code to authorise the payment either through the Merchant Interface, or by sending it to Worldpay in an order modification message.

11 Payment Status Definitions > 5 Payment status definitions 11 It is also possible that a payment attempt is refused by the Worldpay Risk Management Module, a built-in tool to reduce the risk of fraud. In such a case, Worldpay sets the status to REFUSED with the refusal reason of fraud suspicion and the payment details are not sent to the financial institution. For payment attempts that obtain the state REFUSED, you can allow the shopper to choose a different payment method to try again, for instance by providing a link back to the payment selection screen. 5.5 CAPTURED Status CAPTURED means the financial institution has processed the payment and the money will be transferred to Worldpay, or directly to your bank account if you are using your own Internet Merchant Account. The period between an authorisation and a capture request is called the capture delay, and can be configured to be a fixed number of days from 0 up to a maximum of 14 days. We recommend you capture any transaction within 5 working days, as capturing a payment later than this could increase your risk of receiving chargebacks. Worldpay automatically captures any authorised payment after the defined capture delay for that account. This feature can be switched off under special circumstances to create an authorisation-only account. You can also manually capture authorised payments before the end of the capture delay through the Merchant Interface, or by sending an XML capture instruction in an order modification message. As all credit card companies 'dictate', it is not allowed for a merchant to capture a payment before shipping has completed. You should start shipping the order once the status AUTHORISED is reached. If only part of the order can be shipped, it is allowed to capture an amount equal to the shipped part of the order. This is called a partial capture. Please note that only one capture per authorisation is possible. Therefore, if you do a partial capture, the remaining amount cannot be captured anymore. The payment system offers the partial capture functionality in the Merchant Interface, or by accepting an XML capture instruction, provided it is available for that specific order. Authorised payments can be captured as long as the authorisation has not expired (typically up to 5 working days). For selected merchants, and under specific conditions, the capability to do more than one partial capture can be enabled if the total captured amount does not exceed the originally authorised amount. Multiple partial captures is not a standard feature and extra fees will be charged. Some payment methods, like bank transfers or direct debits, reach the CAPTURED status straight away after being authorised. Others, like debit cards, reach the status CAPTURED automatically within a day after being authorised. 5.6 ERROR A payment that is not completely processed by the payment system obtains the status ERROR. There can be different (technical) reasons for this payment status. The shopper can retry a payment attempt that ended in status ERROR. 5.7 CANCELLED You can only cancel payments with status AUTHORISED that have not yet reached the status CAPTURED. Status CANCELLED means that the authorisation (your right to collect the money) is cancelled. You can choose to cancel for various reasons: because the goods or services are no longer available, or you suspect fraud, etc.

12 Payment Status Definitions > 5 Payment status definitions 12 Your cancel instructions can be submitted manually through the Merchant Interface or by sending an XML cancel instruction via an order modification message. Please note that when you cancel a payment, it can take up to 5 working days for the card issuing bank to release the funds and for it to appear as having been repaid in the shopper's bank account. 5.8 CHARGED_BACK The status CHARGED_BACK means the cardholder reversed a capture processed by their bank or credit card company. For instance, the cardholder contacts his credit card company and denies having made the transaction. The credit card company then revokes the already captured payment. Please note the legal difference between shopper who ordered the goods and cardholder who owns the credit card and ends up paying for the order. In general charge backs only occur incidentally. When they do, contacting the shopper can often solve the situation. Occasionally it is an indication of credit card fraud. Worldpay is not always informed in advance about pending charge backs and therefore cannot always inform its merchants in an earlier stage. However, if the financial institution notifies Worldpay first of an upcoming charge back by means of an Information Request, you have the possibility to challenge the charge back (see sections INFORMATION_REQUESTED and INFORMATION_SUPPLIED). 5.9 SETTLED A payment with the status SETTLED is ready to be paid out. Worldpay will either transfer the amount to your bank account within the next five days, or the amount is already transferred to your bank account SETTLED_BY_MERCHANT For merchants who have a C level agreement with Worldpay only. The Status SETTLED_BY_MERCHANT is automatically reached after a payment has been captured and indicates that the amount will be transferred to your bank account, or already has been transferred. For further information please refer to Merchant Related Payment Statuses SENT_FOR_REFUND The status SENT_FOR_REFUND means you have requested the financial institution to do a (partial) refund. When the payment reaches this status, the acquiring bank has accepted the instruction to cancel the payment and it is no longer possible to prevent the refund from being made to the shopper. You should inform the cardholder that it generally takes two to three weeks before he / she receives the refund, as he / she might expect the money sooner. Worldpay advises you to cancel or to perform a partial capture as alternatives whenever possible. Please note that both partial refunds and full refunds will reach this status. The system does not differentiate between them REFUNDED A payment obtains the status REFUNDED when the financial institution processed the refund and the amount has been transferred to the cardholder's account. The amount will be deducted from the next total amount to be paid out to you.

13 Payment Status Definitions > 5 Payment status definitions REFUNDED_BY_MERCHANT For merchants who have a C level agreement with Worldpay only. A payment obtains the status REFUNDED_BY_MERCHANT automatically after it has reached the status SENT_FOR_REFUND. The financial institution processes the refund. The amount will be transferred to the cardholder's account and deducted from the next total amount to be paid out to you. For further information please refer to Merchant Related Payment Statuses REFUND_FAILED The financial institution has returned a message to indicate that the attempted refund was unable to be processed. Any funds which have left your account will be returned EXPIRED Status EXPIRED means that the validity period of the authorisation of the payment has expired. This happens when no capture request is submitted for an authorised payment within typically 28 days after authorisation. Only if you have automatic capture by the Worldpay Payment Service switched off, i.e. the capture delay = 365 days, can status EXPIRED can occur for your account INFORMATION_REQUESTED Charge backs arrive in one of two forms: with or without prior notice by the financial institution. This prior notice is called an Information Request. When Worldpay receives an Information Request for a payment, the system automatically sends you a Card Dispute notification by . The status of the payment is changed to INFORMATION_REQUESTED INFORMATION_SUPPLIED To avoid the possible charge back you can react to an Information Request, for instance by supplying information that proves the shopper and the cardholder is one and the same person. The Dispute Management tool in the Merchant Interface allows you to directly send this information to the financial institution. The status of the payment then changes to INFORMATION_SUPPLIED CHARGEBACK_REVERSED Occasionally, an unsolicited financial transaction may occur, for instance when a second charge back for the same order arrives from the financial institution. To prevent an erroneous unbalance on your account as a result of such an incorrect transaction, Worldpay creates a counter transaction where the payment status is set to CHARGEBACK_REVERSED DISPUTE_EXPIRED If a disputed transaction has exceeded predefined rules in regards to the timeframe a financial institution has to make a chargeback decision, the payment service may, when contacted, manually change the transaction status to a state of DISPUTE_EXPIRED. Funds held on this dispute will be returned.

14 Payment Status Definitions > 5 Payment status definitions DISPUTE_RESERVE_RELEASED An indication that an ongoing dispute with a financial institution has been ruled in favour of the merchant. No chargeback will occur from this dispute, and funds held on the dispute will be returned DISPUTED_FUNDS_HELD Specific to PayPal transactions. Notification that funds are being held by PayPal as a result of a dispute being raised. If you see this status, we recommend that you submit defence information DISPUTED_FUNDS_RELEASED Specific to PayPal transactions. Funds held by PayPal as the result of a dispute have now been released. This does not indicate whether or not a payment has been charged back. For more information about this transaction, contact PayPal.

15 Payment Status Definitions > 6 Special payment statuses 15 6 Special payment statuses 6.1 Alternative Payment Method payment statuses The following two payment statuses apply to alternative payment methods: Status SHOPPER_REDIRECTED SHOPPER_CANCELLED Meaning The shopper has been redirected to an alternative payment method provider. An order with this status is outside of Worldpay's payment processing system. Worldpay has received notification from a payment method provider that the shopper has cancelled the transaction without making a payment. Table 2: Alternative Payment Method payment statuses Both of these payment statuses are for reporting purposes only and do not trigger an order notification (a method of reporting status changes of individual payments). 6.2 Merchant related payment statuses We allow certain merchants, those who have a C Level Service Agreement with us, to handle specific parts of the payment process entirely on their own system. Because our payment service only partially processes these payments, special statuses are assigned in order to complete the payment life cycle. Examples of such special statuses are: REFUNDED_BY_MERCHANT, and SETTLED_BY_MERCHANT. 6.3 Other payment statuses In exceptional situations, other statuses may appear in the history of a payment, for instance in the case of (manual) corrections to a payment flow in the system. Examples are the statuses MISCELLANEOUS and UNKNOWN. For some direct debit payments, INTERNALLY_HELD and INTERNALLY_RELEASED are displayed. Occasionally you may encounter additional payment statuses in the Merchant Interface that are not applicable to your situation. Please note that new statuses may be introduced depending on future needs and developments.

16 Payment Status Definitions > Contact us 16 To find out more, get in touch with your Relationship Manager or: Worldpay All rights reserved. Worldpay, the logo and any associated brand names are all trademarks of the Worldpay group of companies.