⏰ When credit card charges are settled

When a customer makes a credit card purchase, 3 things happen :

  1. Card gets authorized
  2. Our 3rd party fraud protection monitors the transaction
  3. Payment is captured

During the card authorization phase, the payment processor validates the purchase made by the customer. During the authorization phase, the customer will see a transaction that initially shows as a pending on their card statement. Note that this is a placeholder until the payment is settled, per the below steps.

When this happens, credits will be minted to the customer, representing their purchase. Nsure then validates the customer's behavior while the transaction was being made. If at any point during this flow the authorization fails or NSure detects potential fraudulent behavior, the purchase will not be fulfilled.

On the Coinflow backend, we'll run a script that checks authorized cards + matches it to transactions that failed the NSure fraud check. If this happens, we burn the credits that were authorized to the user, and within 1 business day, the user will receive a refund for the original payment amount.

What do I tell my customers?

If a customer contacts you inquiring about a "charge" on their card without having received any items, please explain that the transaction was not finalized and the purchase was canceled. They will notice a temporary pending charge on their statement, which will disappear within about 24 hours. They may proceed to make a new purchase without any concern.