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Overview

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Advantages of using this method

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1. The amount charged to the card is exactly the same as the invoice value, as it is not charged until the invoice print stage. This is handy for situations where back orders, product substitutions, or freight charging might happen.
2. Fewer charge backs if goods can't be shipped.
3. Customers prefer not to be charged until their goods ship.

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Disadvantages of using this method

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1. There is a chance that by the time the goods are shipped, the authorisation has expired and the card can't be charged. The time frame to expiry is generally 7 days for VISA and MasterCard, 14 days for American Express.
2. The money is received by the merchant later than would be under the purchase set up where the card is charged on checkout.  

What is the process?

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1. When the order is placed online, a call is made to the payment gateway provider (e.g. Payment Express). The mode sent to the payment gateway indicates that all that is required is an authorisation over the amount required. For the card holder, this will reduce their available credit by the authorisation amount, but it won't charge the card. For the merchant, the funds are not yet transferred.
2. The order can then be integrated to the ERP system.
3. On integration, the authorisation number is recorded against the sales order.
4. When the goods are shipped, the invoice print program has a trigger to call the Customer Self Service charging program. This program will then call the Integrator, which in turn will make a call to the payment provider. The authorisation number and the amount are passed to the payment gateway. This will charge the card which was previously provided. If the card cannot be charged, a message will be returned recommending the goods not be shipped.
5. A customer payment record will be created in the website.
6. The payment record will be integrated to PRONTO, matching the invoice number on the sales order.  

How can it be implemented on my site?

Please contact Commerce Vision regarding implementation of this method. 

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