POS 101 through POS 106 Protocols
Understanding the fundamental protocols behind Point of Sale (POS) transactions is essential for seamless payment processing. This article covers the typical stages involved in POS transactions, standardized ISO message types, and vendor-specific protocol steps, from initiation to completion.
POS 101: Card Entry
💳
This is the first step where the customer presents their payment method. The card can be swiped, dipped (EMV chip), tapped (NFC/contactless), or manually keyed in. The POS terminal reads the card data for processing.
POS 102: Card Validation
🔍
The POS system verifies the card's authenticity and format. This includes checking the card number's validity (Luhn check), expiration date, and ensuring the card is not on a blocklist.
POS 103: Customer Authentication
🔑
Depending on card type and transaction, the system prompts for PIN entry or signature capture to authenticate the cardholder. Contactless or low-value transactions might skip this step.
POS 104: Authorization Request
📡
The POS terminal sends a transaction authorization request to the acquiring bank or payment processor. This message includes transaction amount, card details, and authentication info.
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Typically corresponds to ISO 8583 MTI 0100 (Authorization Request) or 0200 (Financial Transaction Request).
POS 105: Authorization Response
✅ / ❌
The processor responds with an approval or decline message. If approved, an authorization code is returned. If declined, a reason code explains the failure.
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Corresponds to ISO 8583 MTI 0110 (Authorization Response) or 0210 (Financial Transaction Response).
POS 106: Completion and Receipt
🧾
Once authorized, the POS prints a receipt for the customer and merchant. The transaction is logged locally and sent for settlement later. The terminal may also prompt for tips or other inputs.
ISO 8583 Message Types Overview (Relevant to POS 101-106)
| Code | Name | Description | Icon |
|---|---|---|---|
| 0100 | Authorization Request | Request to approve a payment transaction. | 📡 |
| 0110 | Authorization Response | Response approving or declining the transaction. | ✅ / ❌ |
| 0200 | Financial Transaction Request | Request for financial transaction (sale/refund). | 💰 |
| 0210 | Financial Transaction Response | Response to financial transaction request. | 📄 |
| 0400 | Reversal Request | Request to reverse a previous transaction. | 🔄 |
| 0420 | Reversal Advice | Advice message to inform the host of the reversal. | 🔄 |
Vendor-Specific POS Protocol Steps (Conceptual)
| Step | Description | Icon |
|---|---|---|
| POS 101 | Card Swipe/Insert/Tap | 💳 |
| POS 102 | Card Number and Expiry Verification | 🔍 |
| POS 103 | PIN Entry / Signature Capture | 🔑 |
| POS 104 | Send Authorization Request | 📡 |
| POS 105 | Receive Authorization Response | ✅ / ❌ |
| POS 106 | Print Receipt / Complete Sale | 🧾 |
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