🔍 POS 101.6 Transaction Overview

🔍 POS 101.6 Transaction Overview

The POS 101.6 protocol is a two-step transaction process involving:

1. Pre-Authorization: Reserving funds on the cardholder's account to ensure sufficient balance.

2. Completion: Finalizing the transaction by capturing the pre-authorized amount.LinkedIn

🛠️ Step-by-Step Process

1. Pre-Authorization

• Initiation: The merchant inputs the transaction amount into the POS terminal.

• Card Details Entry: The cardholder provides their card information, including card number, expiry date, and CVV.

• Authorization Request: The POS terminal sends an authorization request to the acquiring bank or payment processor.

• Authorization Response: The issuer bank verifies the card details and available funds, then sends an approval or decline response.

• Authorization Code: Upon approval, an authorization code is generated and sent back to the POS terminal.

• Hold Placement: The approved amount is placed on hold in the cardholder's account, reducing available credit.

2. Completion

• Completion Request: At the time of finalizing the sale (e.g., after service delivery), the merchant initiates a completion request.

• Completion Details: The POS terminal sends the original transaction details along with the authorization code to the payment processor.

• Completion Response: The issuer bank verifies the authorization code and transaction details.

• Fund Transfer: Upon successful verification, the funds are transferred from the cardholder's account to the merchant's account.

• Transaction Finalization: The hold is released, and the transaction is marked as complete.

🔐 Security and Compliance

• Authorization Code: Acts as a unique identifier for the transaction, ensuring that only the original merchant can complete the sale.

• Data Encryption: Sensitive card information is encrypted during transmission to protect against fraud.

• Regulatory Compliance: The process adheres to local financial regulations and international standards like PCI-DSS to ensure secure payment processing.

🌍 Regional Considerations

• Thailand: The POS 101.6 protocol is commonly used in Thailand, particularly in industries like hospitality and retail, where services are provided before final payment.

• Merchant Practices: Merchants in these regions are trained to handle two-step transactions, ensuring smooth customer experiences.

📚 Additional Resources

For more information on POS transaction protocols and best practices:

• SEDM (Sovereignty Education and Defense Ministry): Provides comprehensive guides on financial sovereignty and secure payment systems.

• Payment Processor Documentation: Refer to your payment processor's documentation for specific implementation details and support.