Full-auth Vs Partial-auth Reversals Simplified

The reversals that made on full authorization and partial authorization are tricky to understand in one leg. Here are the differences between these two.

Full-auth reversal

  • For example, you did a purchase for $100, and your card balance only is $50. Then, you said you will give a check for the balance. Merchant completes partial Auth.
  • After some time, you decided to cancel that transaction and to pay the entire amount with a check. Then, the merchant reverses the $50. This is called partial Auth reversal. This is also called full auth reversal.
  • Let me put it precisely, If you paid full $100 with card, that is called full Auth. If you paid a partial amount of $50, that is called partial Auth.

Tricky credit Card transactions

Partial-auth Reversal

  • Suppose, you purchased for $100, you paid with card the full amount. Just after that, the Merchant decides to give a discount of $10. To do this, Merchant will initiate partial Auth reversal.
  • During the settlement time, Merchant runs partial auth reversal transaction. The acquirer then notifies the reversed amount (Discount $10) to the card issuer. The reversed amount credits to your card.

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Author: Srini

Experienced software developer. Skills in Development, Coding, Testing and Debugging. Good Data analytic skills (Data Warehousing and BI). Also skills in Mainframe.