Debt Recovery Workflows
A debt recovery transaction is required in order to retrieve outstanding debt in the
event of a decline of the end-of-day transaction. A debt recovery transaction is also
required in order to remove a card from a deny list. You must remove the card from the
deny list within one hour of receiving the authorization approval. These are the ways to
recover debt:
- Merchant-initiated transaction, resubmitted using the card number.
- Tap-initiated transaction using the EMV track 2 equivalent and EMV tags created when the cardholder returns to enter the transit system.
- Cardholder-initiated transaction through an e-commerce website or by a phone call.
When the debt recovery transaction is declined, you can request payment using the first
ride risk liability model. See the card scheme rules for mass transit transaction
chargebacks.
Merchant-Initiated Transaction (MIT) Resubmission
An MIT resubmission is a deferred authorization that originates from your back
office. This transaction typically references the original declined end-of-day
transaction and uses the card number. Visa allows up to six authorization
resubmissions within 14 days.
Figure:
Merchant-Initiated Visa Debt Recovery Flow
- When the amount exceeds the debt recovery amount limit, the card remains on the deny list.
- When the amount is below the debt recovery amount limit, send a sale request. See Merchant-Initiated Sales for Debt Recovery with Stored Card Data.
- When the transaction is declined, keep the card on the deny list.
- When the transaction is successful, remove the card from the deny list.
Tap-Initiated
Tap-initiated debt recovery occurs when the cardholder returns to the transit gate
and the validator recognizes a new contactless tap.
You may deny the rider entrance unless the tap-initiated debt recovery is attempted
in real time while the cardholder is at the gate. The authorization request uses the
EMV track 2 equivalent and EMV tags from the new tap and includes a future capture
date.
Figure:
Cardholder-Initiated Debt Recovery Flow
- Cardholder taps their card to enter the transit system.
- 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.
- When the transaction is declined, keep the card on the deny list.
- When the transaction is successful, remove the card from the deny list.
Cardholder-Initiated Debt Recovery
These are the scenarios for a cardholder-initiated debt recovery:
- E-commerce, at your website.
- Mail order or telephone order (MOTO), on a phone call.
Figure:
Cardholder-Initiated Debt Recovery Flow
- Cardholder contacts you through your website or by phone call.
- You process a card-not-present authorization.
- When the request is successful, remove the card from the deny list.
- When the request fails, leave the card on the deny list.