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Debt Recovery Workflows

Use a debt recovery transaction to collect outstanding debt when the end-of-day transaction is declined. Each card scheme has its own transaction-processing rules for debt recovery and other types of transactions. For more information, see each card scheme's rules for transit debt recovery retry attempts and transaction time limits.
IMPORTANT
Use a debt recovery transaction to remove a card from a deny list. This action must be completed within one hour of receiving the authorization approval.
These debt recovery transactions are supported:
  • A merchant-initiated transaction that uses the card number.
  • A tap-initiated transaction that uses the EMV track 2 equivalent and EMV tags created when the cardholder re-enters the transit system.
  • A cardholder-initiated transaction that the customer requests by contacting you.
When a debt recovery transaction is declined, you can request payment using the First Ride Risk liability model. For more information, see each card scheme's rules for mass transit transaction chargebacks.

Merchant-Initiated Debt Recovery

A
merchant-initiated
 (MIT)
debt recovery
 transaction is a deferred authorization that originates from your back office. This type of transaction is also called
auto-debt recovery
. The authorization resubmission typically uses the card number and references the original, end-of-day transaction that was declined. Visa allows up to six authorization resubmissions within 14 days.

Figure:

Merchant-Initiated Visa Debt Recovery Workflow
Diagram showing Merchant-Initiated Visa Debt Recovery workflow
  1. When the number of retry attempts for the MIT debt recovery transaction exceeds the card scheme’s limit, stop further processing and keep the card on the deny list.
  2. When the amount is below the debt recovery amount limit, send a sale request. See Merchant-Initiated Sale for Debt Recovery with Stored Card Data.
  3. When the transaction is declined, keep the card on the deny list.
  4. When the transaction is successful, remove the card from the deny list.

Scheduled Debt Recovery Transaction Resubmission

A
scheduled debt recovery
 transaction is a system-generated transaction that originates from your back office. This transaction typically uses the card number and references the original, end-of-day transaction that was declined. Multiple authorization resubmissions might be triggered within 14 days.

Figure:

Scheduled Debt Recovery Workflow
Workflow diagram showing Scheduled Debt Recovery workflow
  1. You configure your payment system to generate scheduled debt recovery authorization requests.
  2. The scheduled authorizations attempt debt recovery submissions within 14 days of the initial transaction.
  3. When the number of retry attempts for the scheduled debt transaction exceeds the card scheme’s limit, stop further processing and keep the card on the deny list.
  4. When the amount is below the debt recovery amount limit, send a sale request.
  5. When the transaction is declined, keep the card on the deny list.
  6. When the transaction is successful, remove the card from the deny list.

Tap-Initiated Debt Recovery

A
tap-initiated debt recovery
 transaction occurs when the cardholder returns to the transit gate, and the validator recognizes a new contactless tap.
You can deny the rider entrance unless the tap-initiated debt recovery transaction is attempted in real time while the cardholder is at the gate. The authorization request includes the EMV track 2 equivalent and EMV tags from the new tap, and a future capture date.

Figure:

Tap-Initiated Debt Recovery Workflow
Diagram showing Tap-Initiated Debt Recovery Workflow
  1. The cardholder taps their card to enter the transit system.
  2. You submit a new authorization request using the EMV track 2 equivalent and EMV tags created by the validator and a capture date in the future.
  3. When the transaction is declined, keep the card on the deny list.
  4. When the transaction is successful, remove the card from the deny list.

Cardholder-Initiated Debt Recovery

A
cardholder-initiated debt recovery
 transaction occurs when the cardholder contacts you. The method of contact depends on where the transaction occurred such as on your e-commerce website or by phone or email for a mail order or telephone order (MOTO) transaction.
For information about e-commerce or MOTO payment services, see the
Payments Developer Guide
.

Figure:

Cardholder-Initiated Debt Recovery Flow
Diagram showing Cardholder-Initiated Debt Recovery Flow
  1. The cardholder contacts you through your website or by phone or email for a MOTO transaction.
  2. You process a card-not-present (CNP) authorization.
  3. When the request is successful, remove the card from the deny list.
  4. When the request fails, leave the card on the deny list.
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