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April 3, 2020

Gateway JIT Funding Scenarios

You can use the Gateway JIT (Just-in-Time) Funding feature to participate in funding decisions. Using Gateway JIT Funding adds a layer of complexity to the transaction lifecycle because your gateway must receive and respond to transaction requests.

This page describes several Gateway JIT Funding transaction flows and where your gateway fits in each.

For more information on JIT Funding, see About Just-in-Time Funding.

Authorizations and clearings

An authorization occurs when a cardholder attempts to make a payment. If the authorization is successful, a clearing transaction follows, which actually moves the necessary funds.

Authorization and clearing process

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When a cardholder attempts to make a purchase without using a PIN, the following occurs:

  1. The merchant initiates the purchase attempt and sends an authorization message to the card network.

  2. The card network sends an authorization message to the Marqeta platform.

  3. The Marqeta platform sends a JIT Funding request to your gateway and includes relevant transaction data to assist in your decision-making process.

  4. Your gateway makes a decision and responds by either approving or declining the funding request.

  5. The Marqeta platform sends an authorization response to the card network.

  6. The Marqeta platform sends a notification to you via a webhook that you can use to validate the authorization and update the account’s balance.

  7. The card network sends an authorization response to the merchant.

If the authorization was approved, the following clearing process occurs:

  1. The merchant submits a capture request to the card network.

  2. The card network sends a clearing record to the Marqeta platform.

  3. The Marqeta platform sends a clearing notification to you via a webhook.

  4. The Marqeta platform completes the transaction.

PIN Debit and ATM Debit transactions

A PIN debit transaction occurs when a cardholder uses their PIN at a point of sale to make a purchase.

Debit card PIN process

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When a cardholder attempts to make a payment using their PIN, the following occurs:

  1. The merchant initiates the purchase attempt and sends a PIN debit message to the card network.

  2. The card network sends a PIN debit message to the Marqeta platform.

  3. The Marqeta platform sends a JIT Funding request to your gateway and includes relevant transaction data to assist in your decision-making process.

  4. Your gateway makes a decision and responds by either approving or declining the funding request.

  5. The Marqeta platform sends a PIN debit response to the card network.

  6. The Marqeta platform sends a PIN debit notification to you via a webhook that you can use to validate the PIN debit details and update the account’s balance.

  7. The card network sends a PIN debit response to the merchant.

Withdrawing money from an ATM triggers a very similar flow. When a cardholder attempts to withdraw funds from an ATM, the following occurs:

  1. The ATM sends an ATM withdrawal message to the card network.

  2. The card network sends an ATM withdrawal message to the Marqeta platform.

  3. The Marqeta platform sends a JIT Funding request to your gateway and includes relevant transaction data to assist in your decision-making process.

  4. Your gateway makes a decision and responds by either approving or declining the funding request.

  5. The Marqeta platform sends an ATM withdrawal response to the card network.

  6. The Marqeta platform sends an ATM withdrawal notification to you via a webhook that you can use to validate the ATM withdrawal details and update the account’s balance.

  7. The card network sends an ATM withdrawal response to the ATM.

Refunds

A refund occurs when a cardholder requests that the merchant return money from a previous transaction after the clearing process has completed.

Refunds process

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When a cardholder asks a merchant to refund a prior transaction, the following occurs:

  1. The merchant initiates a refund request by sending the request to the card network.

  2. The card network sends the refund request to the Marqeta platform.

  3. The Marqeta platform sends a refund notification to you via a webhook. Your system updates the account balance data it holds using transaction data in the notification.

  4. The Marqeta platform completes the transaction.

Reversals

A reversal occurs when a merchant cancels a transaction after the authorization succeeds but before the clearing process occurs.

Reversals process

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When a merchant requests a reversal, the following occurs:

  1. The merchant cancels the transaction prior to capture.

  2. The merchant sends a reversal message to the card network.

  3. The card network sends a reversal message to the Marqeta platform.

  4. The Marqeta platform sends a reversal notification to you via a webhook. Your system updates the account balance data it holds using transaction data in the notification.

  5. The Marqeta platform completes the transaction.

Tips

A tip transaction occurs when an original authorization amount is updated with a new amount, such as when a cardholder makes a purchase at a restaurant and then adds a tip on top of the authorization amount.

Tips process

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When a cardholder adds a tip to the original authorization amount, the following occurs:

  1. The merchant initiates the purchase attempt and sends an authorization message to the card network.

  2. The card network sends an authorization message to the Marqeta platform.

  3. The Marqeta platform sends a JIT Funding request to your gateway and includes relevant transaction data to assist in your decision-making process.

  4. Your gateway makes a decision and responds by either approving or declining the funding request.

  5. The Marqeta platform sends an authorization response to the card network.

  6. The Marqeta platform sends a notification to you via a webhook that you can use to validate the authorization and update account balances.

  7. The card network sends an authorization response to the merchant.

  8. The merchant calculates the transaction total, including the tip.

  9. The merchant submits a capture request to the card network.

  10. The card network creates a clearing record that replaces the authorization amount with the new amount that includes the tip.

  11. The card network sends the clearing record to the Marqeta platform.

  12. The Marqeta platform sends a clearing notification to you via a webhook. Your system makes any necessary updates to the account balance data it holds.

  13. The Marqeta platform completes the transaction.

Automated fuel dispenser (AFD) transactions

An automated fuel dispenser (AFD) transaction occurs when a cardholder purchases fuel directly from the fuel dispenser.

Automated fuel dispenser process

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When a cardholder initiates an AFD transaction, the following occurs:

  1. Before the cardholder pumps the fuel, the merchant initiates a fuel transaction and sends an authorization request to the card network.

  2. The card network sends the authorization request to the Marqeta platform.

  3. The Marqeta platform sends a JIT Funding request to your gateway and includes relevant transaction data to assist in your decision-making process.

  4. Your gateway makes a decision and responds by either approving or declining the funding request.

  5. If the authorization request is successful, the Marqeta platform sends an authorization response to the card network.

  6. The Marqeta platform sends a notification to you via a webhook that you can use to validate the authorization and update account balances.

  7. The cardholder pumps the fuel.

  8. The automated fuel dispenser sends an authorization advice message to the card network.

  9. The card network sends an authorization advice message to the Marqeta platform to update the original authorization to the final amount of the fuel purchase.

  10. The Marqeta platform sends an authorization advice message to you via a webhook.

  11. Your system makes any necessary updates to the account balance data it holds.

  12. The Marqeta platform sends an authorization advice acknowledgement to the card network.

  13. The card network receives the authorization advice acknowledgement from the Marqeta platform.

  14. The merchant submits a capture request to the card network for the final purchase amount.

  15. The card network sends a clearing record to the Marqeta platform.

  16. The Marqeta platform sends a clearing notification to you via a webhook.

  17. The Marqeta platform completes the transaction.

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