Real-Time Funding Transaction Examples

This page contains examples of different types of real-time funding (RTF) transactions. For an explanation of real-time funding see About Real-Time Funding. Also see About Card Transactions.

These examples show the entries that are written to the ledger for different transaction types. The tables combine the activity for both the RTF funding and RTF spending accounts. For all examples the following is true:

• 3333333 — PRN of the RTF funding account
• 7777777 — PRN of the RTF spending account
• The source_id for all adjustments refers to the adj_id in the adjustments table.
• The RTF funding account contains 1000.00 as a beginning balance.
• The RTF spending account contains 0.00 as a beginning balance.

Examples

• Conventional purchase
• Reversal without settlement
• Reversal with settlement
• Merchant credit (Maestro)
• Merchant credit (Mastercard credit)
• Gas pump
• Incremental authorization
• Partial reversal on authorization
• Force post
• Incremental clearing

Conventional purchase

A Mastercard cardholder makes a $35 purchase on 13 Jul 2023 at 9:00 am.

• Row 1 — The transfer of funds out of the RTF funding account. The source_id refers to the entry in the adjustments table (adj_id).
• Row 2 — The transfer of funds into the RTF spending account.
• Row 3 — The approved authorization amount. A 35.00 hold is placed on the RTF spending account, so the available balance is 0.00. Between the time that the 35.00 is moved into the RTF spending account and the hold is placed, the amount is locked, so the 35.00 cannot be spent by another process.
• Rows 4–5 — The settlement time, when the authorization hold is backed out and the settlement is posted to the RTF spending account.

For instructions on simulating this type of transaction see Perform transactions in Testing Real-Time Funding in CV.

Reversal without settlement

The cardholder makes a $45 purchase on 12 Aug 2023 at 8:00 pm, and it is reversed an hour later. The reversal happens before the transaction clears, so there is no settlement. The network is Visa. Most authorization reversals follow this pattern.

• Rows 1–2 — The transfer from the RTF funding account to the RTF spending account.
• Row 3 — The approved authorization amount. A 45.00 hold is placed on the RTF spending account, so the available balance is 0.00.
• Row 4 — The reversal an hour later. Galileo reverses out the 45.00 hold, so the available balance is 45.00. For this transaction, the prior_id (reversal ID) would be 333000.
• Rows 5–6 — The 45.00 is immediately transferred back to the RTF funding account.Notice that the transaction codes are SY and FY, because the transfers were triggered by a transaction from the authorization stream.
• Rows 7–8 — The expiry of the authorization as well as the reversal seven days later.

For instructions on simulating this type of transaction see Authorization Reversal Simulation.

Reversal with settlement

The cardholder makes a $45 purchase on 12 Aug 2023 at 8:00 pm, and it is reversed an hour later. The network sends the reversal in the settlement file. The network is Visa. An authorization reversal followed by a settlement is not a common event.

• Rows 1–2 — The transfer from the RTF funding account to the RTF spending account.
• Row 3 — The approved authorization amount. A 45.00 hold is placed on the RTF spending account, so the available balance is 0.00.
• Row 4 — The reversal an hour later. Galileo reverses out the 45.00 hold, so the available balance is 45.00. For this transaction, the prior_id (reversal ID) would be 333000.
• Rows 5–6 — The 45.00 is immediately transferred back to the RTF funding account.
• Row 7 — The settlement from the daily batch file, which arrives before the authorization would have expired. The settlement triggers the expiration of the reversal, in Row 8.

Merchant credit (Maestro)

The cardholder makes a $100 purchase on 3 Nov 2023 at 11:00 am. A week later, the cardholder returns the item for a full refund. The transaction settled before the item was returned. The network is Mastercard Maestro (debit). A Visa merchant credit (credit or debit network) follows the same process.

• Rows 1–2 — The transfer from the RTF funding account to the RTF spending account.
• Row 3 — The approved authorization amount. A 100.00 hold is placed on the account, so the available balance is 0.00.
• Rows 4–5 — The transaction is backed out and settled.
• Row 6 — The advice for the merchant credit. However, the merchant credit is not posted to the account at this time.
• Rows 7–9 — The arrival of the merchant credit in the batch settlement file. Galileo creates a new authorization and backout entry before posting the credit.
• Rows 10–11 — The 100.00 is moved immediately back into the RTF funding account.

Merchant credit (Mastercard credit)

This is exactly the same scenario as above only using Mastercard Banknet (credit). Galileo processes Mastercard Banknet merchant credits as adjustments. The cardholder makes a $100 purchase on 3 Nov 2023 at 11:00 am. A week later, the cardholder returns the item for a full refund.

• Rows 1–2 — The transfer from the RTF funding account to the RTF spending account.
• Row 3 — The approved authorization amount. A 100.00 hold is placed on the RTF spending account, so the available balance is 0.00.
• Rows 4–5 — The transaction is backed out and settled.
• Row 6 — The merchant credit, which arrived at Galileo in the batch settlement file that Mastercard sent Galileo. Galileo processes the merchant credit as an adjustment.
• Rows 7–8 — The credit is moved out of the RTF spending account back to the RTF funding account.

Gas pump

The cardholder dispenses $50 worth of gas at a gas pump on 3 Jul 2023 at 10:00 am. There is a $75 upcharge for gas purchases. The network is Mastercard Maestro.

• Rows 1–2 — The amount of the preauthorization is moved from the RFT funding account into the RTF spending account.
• Row 3 — The approved authorization amount. A 75.00 hold is placed on the RTF spending account, so the available balance is again 0.00.
• Rows 4–5 — The preauthorization hold is backed out and replaced by the –50.00 completion. Galileo replaces the 75.00 hold with a 50.00 hold, leaving 25.00 in the RTF spending account.
• Rows 6–7 — The 25.00 is moved immediately from the RTF spending account back into the RTF funding account. The trans_codes are ADSY/ADFY because completions arrive at Galileo through the authorization stream.
• Rows 8–9 — The 50.00 completion hold is backed out and settled.

For instructions on simulating this type of transaction see Five-Step Sequence Simulation.

Incremental authorization

A cardholder calls a ride-share service through its app, and the cost of the proposed destination is $25. The app authorizes the transaction at 9:00 am. After arriving at the first destination 20 minutes later, the cardholder requests a second destination for $15, and then after arriving at the second destination 30 minutes later, requests a third, for $10.

• Rows 1–2 — The amount of the authorization is moved from the RFT funding account into the RTF spending account.
• Row 3 — The approved authorization amount. A 25.00 hold is placed on the RTF spending account, so the available balance is again 0.00.
• Row 4 — The 25.00 is backed out because Galileo received an incremental authorization request.
• Rows 5–6 — The additional 15.00 is moved from the RTF funding to the RTF spending account.
• Row 7 — The –40.00 incremental authorization request. Galileo places a 40.00 hold on the RTF spending account, so the available balance is again 0.00.
• Row 8 — The 40.00 hold is backed out because Galileo received another incremental authorization request.
• Rows 9–10 — The additional 10.00 is moved from the RTF funding to the RTF spending account.
• Row 11 — The –50.00 incremental authorization request. Galileo places a 50.00 hold on the RTF spending account, so the available balance is again 0.00.
• Rows 12–13 — The 50.00 hold is backed out and settled. Notice that the auth_id corresponds to the last authorization in the series.

Partial reversal on authorization

A cardholder goes to an agency to rent a car. The agency obtains a $500 preauthorization. The next day, the cardholder returns the car, and the bill comes to $60. The network is Mastercard Banknet (credit).

• Rows 1–2 — The amount of the authorization is moved from the RFT funding account into the RTF spending account.
• Row 3 — The approved preauthorization amount. A 500.00 hold is placed on the RTF spending account, so the available balance is again 0.00.
• Row 4 — The preauthorization reversal for 440.00. The available balance is 440.00.
• Rows 5–6 — The reversal amount is moved back from the RTF spending account to the RTF funding account.
• Row 7 — The expiry of the 440.00 reversal, which is triggered by the arrival of the batch settlement file.
• Rows 8–9 — Galileo backs out the original 500.00 hold and posts –60.00 to the account.

Force post

A cardholder makes a $15 purchase at a store. Technical problems prevent the merchant from getting an authorization at sale time, so the next day the merchant sends a force posting in the settlement batch file.

• Rows 3–5 — When Galileo receives a settlement for a transaction that has no corresponding authorization, Galileo creates an authorization, backs it out, and settles it at the same time.
• Rows 1–2 — The transaction amount is moved from the RTF funding account to the RTF spending account before the authorization is created.

For instructions on simulating this type of transaction see Force-Post Simulation.

Incremental clearing

A cardholder purchases three items from three different third-party vendors on the same online store. The items are for $150, $75, and $175. The online merchant obtains preauthorization for $400, and then each item is cleared separately when the vendors ship them.

• Rows 1–2 — The amount of the authorization is moved from the RFT funding account into the RTF spending account.
• Row 3 — The approved preauthorization amount. A 400.00 hold is placed on the RTF spending account, so the available balance is again 0.00.
• Rows 4–5 — The first settlement. Galileo backs out 150.00 of the hold and posts –150.00 to the account. The remaining hold is for 250.00.
• Rows 6–7 — The second settlement. Galileo backs out 75.00 of the hold and posts –75.00 to the account. The remaining hold is for 175.00.
• Rows 8–9 — The last settlement. Galileo backs out the remaining hold and posts –175.00 to the account.

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