Adding Tips After Transaction Authorization

<New set of product options, separately licensed>

Now WAY4 allows merchants to increase the transaction amount after the initial authorization. For example, service providers can charge tips on the card later without making clients wait. Acquirers can enable this option on a POS terminal for all their merchants or for selected ones.

This new WAY4 functionality also helps prevent fraud. Now merchants can set up a tip limit as a percentage of the original amount. A higher tip will be rejected.

Let’s see how this functionality typically works. A client in a café presents a credit or debit card. The waiter runs the first transaction on POS for the total amount excluding tips. The printed receipt has a special line where the client writes the preferred tip amount and, if required, his personal signature.

The café staff can charge tips via POS by simply entering the identifier of the first transaction and the tip amount, which can be done after the cardholder has already left. However, it must be done before the POS terminal sends all stored authorized sales in a batch to the acquirer, which for most merchants would be the end of the day.