Case by case

Authorization

An authorization occurs when a cardholder attempts to make a payment. If the authorization is successful, a clearing transaction follows, which actually moves the necessary funds.

When a cardholder attempts to make a purchase, the following occurs:

The merchant initiates the purchase attempt and sends an authorization message to the card network.
The card network sends an authorization message to StraitsX.
StraitsX sends a Authorization request to your gateway and includes relevant transaction data to assist in your decision-making process.
Your gateway makes a decision and responds by either approving or declining the funding request.
StraitsX sends an authorization response to the card network.
StraitsX sends a notification to you via a webhook that you can use to validate the authorization and update the account’s balance.
The card network sends an authorization response to the merchant.

If the authorization was approved, the following clearing process occurs:

The merchant submits a capture request to the card network.
The card network sends a clearing record to StraitsX.
StraitsX sends a clearing notification to you via a webhook.
StraitsX completes the transaction.

Offline Refund

An offline refund occurs when a cardholder requests that the merchant return money from a previous transaction after the clearing process has completed.

When a cardholder asks a merchant to refund a prior transaction, the following occurs:

The merchant initiates a refund request by sending the request to the card network.
The card network sends the refund request to StraitsX.
StraitsX sends a refund notification to you via a webhook. Your system updates the account balance data it holds using transaction data in the notification.
StraitsX completes the transaction.

Reversals

A reversal occurs when a merchant cancels a transaction after the authorization succeeds but before the clearing process occurs.

When a merchant requests a reversal, the following occurs:

The merchant cancels the transaction prior to capture.
The merchant sends a reversal message to the card network.
The card network sends a reversal message to StraitsX.
StraitsX sends a reversal notification to you via a webhook. Your system updates the account balance data it holds using transaction data in the notification.
StraitsX completes the transaction.

Tips

A tip transaction occurs when an original authorization amount is updated with a new amount, such as when a cardholder makes a purchase at a restaurant and then adds a tip on top of the authorization amount.

When a cardholder adds a tip to the original authorization amount, the following occurs:

The merchant initiates the purchase attempt and sends an authorization message to the card network.
The card network sends an authorization message to StraitsX.
StraitsX sends a Authorization request to your gateway and includes relevant transaction data to assist in your decision-making process.
Your gateway makes a decision and responds by either approving or declining the funding request.
StraitsX sends an authorization response to the card network.
StraitsX sends a notification to you via a webhook that you can use to validate the authorization and update account balances.
The card network sends an authorization response to the merchant.
The merchant calculates the transaction total, including the tip.
The merchant submits a capture request to the card network.
The card network creates a clearing record that replaces the authorization amount with the new amount that includes the tip.
The card network sends the clearing record to StraitsX.
StraitsX sends a clearing notification to you via a webhook. Your system makes any necessary updates to the account balance data it holds.
StraitsX completes the transaction.

Hold & Completion

A pre-authorization (hold) is a temporary hold on a customer’s card until the post-authorization (completion) comes through, or until we release the hold automatically.

When a cardholder attempts to make a purchase, and the merchant choose to use pre-authorization (hold) to hold the funds, the following occurs:

The merchant initiates the pre-authorization (hold) attempt and sends an authorization message to the card network.
The card network sends an authorization message to StraitsX.
StraitsX sends a Authorization request to your gateway and includes relevant transaction data to assist in your decision-making process.
Your gateway makes a decision and responds by either approving or declining the funding request.
StraitsX sends an authorization response to the card network.
StraitsX sends a notification to you via a webhook that you can use to validate the authorization and update the account’s balance.
The card network sends an authorization response to the merchant.

After the purchase been made and merchant use post-authorization (completion) to release the funds, the following occurs:

The merchant initiates the post-authorization (completion) attempt and sends an authorization message to the card network.
The card network sends an authorization message to StraitsX.
StraitsX sends a Authorization request to your gateway and includes relevant transaction data to assist in your decision-making process.
Your gateway makes a decision and responds by either approving or declining the funding request.
StraitsX sends an authorization response to the card network.
StraitsX sends a notification to you via a webhook that you can use to validate the authorization and update the account’s balance.
The card network sends an authorization response to the merchant.

If the hold and completion were approved, the following clearing process occurs:

The merchant submits a capture request to the card network.
The card network sends a clearing record to StraitsX.
StraitsX sends a clearing notification to you via a webhook.
StraitsX completes the transaction.

Debit verify

A debit verify is a type of transaction initiated by the acquiring merchant when a cardholder registers their card with the merchant for online transactions. This process validates key card details, such as the CVV2, card number, and expiry date, ensuring the card is functional for future online transactions with the merchant. Debit verify transactions are non-financial and carry a zero amount, so no remote host authorization is required. Instead, we'll simply send a webhook event labeled transaction with type = debit_verify to notify you when it occurs.