Reverse authorization settlement scenarios

Authorization amount and settlement charge match

In most scenarios, a settlement request will be created for an authorization that has not yet expired and for the exact amount. In this situation, there is no need for reversal or reauthorization, and the settlement can occur normally against the intended authorization.

Expired authorization

It is possible for a charge request to be created while an authorization request has expired, but before it can be reauthorized. In this instance, there is no need to reverse the authorization. If the authorization expiration date is set to the last date when reversal is allowed, then the authorization is likely still valid for settlement.

You can use executeCollection's user exits such as YFSCollectionCreditCardUE to determine how the charge should be processed. You can determine the actual authorization date based on the payment type information indicating how far in advance a payment type must be reversed.

If the authorization is actually expired, then the YFSCollectionCreditCardUE can return that the charge has failed and requestCollection would create a new charge request, returning the results in executeCollection. Inside the output of the user exit is a field in recordAdditionalTransactions that you can use to record additional payment system communication that occurs inside the YFSCollectionCreditCardUE user exit, which typically updates only a single record. The executeCollection API will use this document to call the recordExternalCharges API internally. If the reauthorization or settlement fails, then YFSCollectionCreditCardUE returns that the charge has failed and requestCollection will create a new charge request.

Authorization amount and settlement charge differ

When settling an invoice, an authorization request may not match the actual charge request. This mismatch can occur if there is a partial shipment, a price change, or other adjustment scenarios. For example, a charge for $60 might take place on an authorization for $100. Two reverse excess authorization strategies are available for dealing with this scenario:

Scenario 1: Reverse the entire authorization amount and then issue a new authorization for the order total.

1. Reverse the original authorization of $100.
2. Acquire a new authorization for $60.
3. Settle against the new authorization for $60.

To implement this strategy, enable the Reverse Excess option and disable the Partial Reversal Supported option.

Another method for implementing this strategy is to use the YFSCollectionCreditCardUE user exit. Report any necessary information via the recordAdditionalTransactions output field. You may also update the authorization ID of the charge record, but you must provide reverse and reauthorization information using recordAdditionalTransactions.

Scenario 2: Reverse only the excess authorization amount.

1. Reverse the authorization of $40.
2. Settle against the authorization for $60.

To implement this strategy, enable the Reverse Excess option, the Partial Reversal Supported option, and Do not consolidate settlement or refund request across invoices.