There are many states that a transaction can go through from the time of swipe to the time of payment. Below is a conclusive list of all transaction status.
- posted
- declined
- card verification
- canceled
- credit
- failed
- pending
Below is a set of standard transaction flows and states that Custodia sees from credit card processing networks:
Standard Authorization
Below are the steps that happen in a standard authorization where a user purchases an item from an online website or physical store location (status in parenthesis):
- User swipes card (pending)
- Bank clears transaction (posted) - this step typically takes 2-3 days
Standard Decline
Below are the steps that happen in a standard decline of a transaction (status in parenthesis):
1. User swipes card (declined)
Card Verification
Below are the steps that happen when a user verifies their card, typically via mobile application (e.g. ride share service):
- User adds card to their app and the merchant charges $0 (card verification)
Transaction Reversal
Below are the steps that happen when a transaction is reversed by a merchant:
- User swipes card (pending)
- Merchant fully reverses charge (canceled)
Transaction Refund
Below are the steps that happen when a transaction is given a refund by a merchant. Note that with refunds there are two separate transactions.
- User swipes card (pending)
- Bank clears transaction (posted) - this step typically takes 2-3 days
- Merchant issues refund to user (pending) - this is a second new transaction
- Bank clears transaction (credit) - this step typically takes 2-3 days