Reversal of authorization

In addition to normal transaction fees that credit card companies charge, they may also charge an extra fee to merchants who do not explicitly reverse an unused credit card authorization. The Reverse Authorization feature enables merchants to implement an authorization strategy that generates a reversal request before the unused authorization expires.

Credit card companies may also levy a fee if the authorization amount and the settlement amount do not match. Sterling™ Order Management System provides two methods for reversing expiring authorizations and handling different authorization and settlement amounts – the Authorization Reversal Strategy option and the YFSCollectionCreditCardUE user exit implementation.

Reverse authorization requests are processed by the PAYMENT_EXECUTION agent. With the exception of customer accounts, the reverse authorization feature supports any payment method that requires authorizations.

Note: If using the Dynamic Charge Transaction Request feature with the Partial Reversal of Authorization feature, partial reversals and new authorizations are likely to mismatch when an invoice total changes and there are existing charge transaction requests. In such cases, the distribution of authorizations and charges may not be optimal, depending on amounts and totals.