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5 minute read
June 4, 2021

Money Movement Overview

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This page provides an overview of how money moves through the Marqeta platform in various types of transactions.

These transactions use the standard funding model. For examples of these scenarios using Just-in-Time (JIT) Funding, see Gateway JIT Funding Scenarios.

Credit card transactions

When a cardholder makes a purchase without using a PIN, the following occurs:

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

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

  • The Marqeta platform sends an authorization response to the card network

  • The Marqeta platform updates the account’s ledger balance.

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

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

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

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

  • 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.

When a cardholder makes a purchase using their PIN, the following occurs:

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

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

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

  • The Marqeta platform updates the account’s ledger balance.

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

Withdrawing money from an ATM triggers a similar flow. When a cardholder withdraws money from an ATM, the following occurs:

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

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

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

  • The Marqeta platform updates the account’s ledger balance.

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

Refunds

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

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

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

  • The Marqeta platform updates the account’s ledger balance.

  • The Marqeta platform completes the transaction.

Reversals

When a merchant requests a reversal, the following occurs:

  • The merchant cancels the transaction prior to capture.

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

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

  • The Marqeta platform updates the account’s ledger balance.

  • 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.

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

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

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

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

  • The Marqeta platform updates the account’s ledger balance.

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

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

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

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

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

  • 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.

When a cardholder purchases fuel from an AFD, the following occurs:

  • Before the cardholder pumps the fuel, the merchant initiates a fuel transaction and sends an authorization request for an initial amount of money to the card network.

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

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

  • The Marqeta platform updates the account’s ledger balances, placing a hold on the initially authorized amount.

  • The cardholder pumps the fuel.

  • The AFD sends an authorization advice message to the card network.

  • 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.

  • The Marqeta platform updates the account’s ledger balance to the final purchase amount, releasing the hold on any amount over that final purchase total.

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

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

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

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

  • The Marqeta platform completes the transaction.

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