Authorization recycling is the process of retrying declined authorization attempts. Every merchant, especially those with a business model that relies on recurring or installment payments, should devise a strategy for dealing with declined authorizations. As part of optimizing their operations, merchants must devise plans for both the timing and number of recycling attempts before contacting the cardholder or risking interruption of service. If a merchant does not recycle enough, they risk losing customers and revenue; whereas, if the merchant recycles too often, they risk increasing their total cost of payments. Implementing an optimal recycling strategy aids customer retention and therefore yields higher revenues, while lowering the costs of payment acceptance and improving cash flow.
In order to determine the most effective recycle timing, Vantiv performs statistical analysis of past recycling attempts across our entire merchant portfolio. This analysis examines many factors, including method of payment, response codes, and transaction amounts among others, to determine the optimum intervals between attempts to obtain a successful authorization.
When merchants receive a declined Authorization, the system automatically queues the transaction for a retry at a designated time. Recycling of the Auth continues until it is either successful or the algorithm determines that it is no longer advantageous to retry.
Vantiv provides the results of the recycling efforts to merchants in a batch file posted daily to their Vantiv FTP account. This file contains standard response messages for transactions that were either approved or exhausted from the recycling pattern on the previous day. If you submit an Authorization for a transaction in the recycling queue, we return the response from the last automatic recycling attempt. To halt recycling of a particular transaction, submit either an Authorization reversal transaction, if the original transaction was an Auth, or a Void transaction, if the original transaction was a Sale (conditional deposit).
To learn more about Sales Recycling features, consult the eCommerce Recycling Services Guide.
For additional information please refer to the Vantiv LitleXML Reference Guide.
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