For merchants working with the solution for Trading Platforms, Tranzzo provides the possibility of accepting two-step payments via the split payment service.
Two-step payments involve the pre-authorization (holding) of the customer's funds in his own bank account to ensure further payment. Completion of the payment process requires one of the following actions:
- Payment capture , when pre-authorized funds are debited from the customer's account to your account.
- Voiding pre-authorization , when the funds are unblocked and become available to the customer again.
The advantage of two-step payment is that you have the opportunity to cancel the payment before it is actually made (debiting the funds from the customer's account), which reduces the costs of the commission that could be incurred if it is necessary to issue a refund for the payment.
Two-step payment use-case:
The customer creates a cart of goods on the marketplace website and makes a payment (funds are being reserved during pre-authorization). Submerchants are the participants of the operation, they check the availability of the ordered goods/ability to provide the ordered service:
Scenario 1: submerchants check the ability of partial/full fulfillment of the customer’s order, as a result, the Capture can be performed with subsequent transfer of the corresponding funds to the submerchant account.
Scenario 2: submerchants are the participants of the operation, and they discovered the lack of goods in warehouses/inability of providing services to the customer, thus the Void operation is performed for the pre-authorized amount - the payment process is interrupted, therefore, there is no need for submerchants to perform refund for the customer and bear additional fee.
Scenario 3: One of the submerchant is able to provide the product/service, and the other is not, thus there is a need to capture part of the whole amount to the account of the submerchant who is able to fulfill his part of the order.
Primary two-step payment pre-authorization transactions have the "Auth" type and are displayed with this value in the merchant portal.
Two-step payment is supported only when using card payment methods and digital wallets Apple Pay and Google Pay.
Note: primary transactions (purchase, auth, credit, lookup, P2P) must have a unique order ID. In case the chosen order ID is already set for another transaction, an error will be received when creating the order.