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Card Payments 101

Immersve facilitates payments on the Mastercard® network by implementing the required card payment protocols. The main protocol instructions are: Authorization, Clearing, and Settlement.

Authorization

An Authorization message is sent when a cardholder taps their card at a payment terminal or when an e-commerce payment gateway authorizes a card payment. In response to an Authorization request, Immersve must check the validity of a card and check if funds are available. At this point the transaction is initialized, with an initial hold being made on the funds. Authorization messages are received and processed in real-time. Authorized funds are no longer available to the cardholder for withdrawal or spend. Authorizations that have not yet cleared appear to the cardholder as “pending” transactions.

Clearing

A Clearing message indicates finalization of a payment. In an e-commerce setting, this often happens after order fulfillment. A clearing message may have a value that is greater or less than the authorized amount. Authorized funds are not settled until cleared.

Authorizations expire when not cleared. The expiry period is between 7 and 30 days dependent upon the particulars of the Authorization. Cardholders regain full control of funds held by expired Authorizations.

Settlement

All cleared payment transactions need to be paid to Mastercard by Immersve. The process of paying out cleared transactions is referred to as Settlement. Settlements are conducted by Immersve at a cadence as instructed by Mastercard. An Immersve partner organisation does not actively participate in the settlement process nor have visibility of it.