I see two charges from NFO to my credit card! What happened?

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Edge100x
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I see two charges from NFO to my credit card! What happened?

Post by Edge100x »

If you are looking at your credit/debit card list of "pending" charges and see two entries with the same date, and possibly slightly different names, like this:

3/31/2012 - $49.99 - NFOSERVERS DOT COM
3/31/2012 - $49.99 - NFOSERVERS.COM

.. this means that one of our payment processors tried to run your card and received an "authorization" to make the charge from your bank, but it then rejected your payment because the response from your bank did not meet some criteria -- it told our processor that the CVV2 code did not match, the address didn't match closely enough, or the expiration date didn't match, for instance. Our system then automatically reattempted through another payment processor, and the second processor let it go through without the same complaint.

Only one of these payments will actually be "captured" and result in a charge. The other will automatically be dropped by your bank.

To prevent this from recurring, make certain that all of the information you provide us for your credit card is exactly correct and up-to-date.
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Re: I see two charges from NFO to my credit card! What happe

Post by Edge100x »

To elaborate, credit card payments work like this:
  1. The merchant contacts the payment processor and requests an authorization for a charge, with a follow-up capture later on if it clears.
  2. The processor contacts the issuing bank (via the payment network, such as VISA or Mastercard) and asks for the authorization.
  3. The bank responds with whether it would allow the charge to go through. It attaches additional information, such as whether the information matched its records. Sometimes a bank will reject a charge because it believes it to be fraudulent, and sometimes it will authorize a charge even though not all of the information matches.
  4. The processor examines the returned information.
    1. If the authorization was rejected, it returns that immediately to the merchant, and never attempts to actually capture the funds (as that would be guaranteed to fail).
    2. If the authorization was granted but the bank also said that some information was invalid (such as the address, phone number, CVV2/CVC/CID code, or expiration date), the processor may reject the charge, and also never capture the funds. In this case, the bank is not notified; it simply never gets the actual charge. As a result, the payment essentially times out.
    3. If the authorization was granted and everything matches, a capture is made within 24 hours that instructs the issuing bank to actually transfer the funds. A smaller capture may also be made, or a slightly larger one, depending on the nature of the transaction. In the intervening time, the bank may, at its discretion, also choose to cancel the authorization, preventing the funds transfer.
In the case of 4b/4c, many issuing banks will report to the client there is a "pending" charge on the account. Since these "pending" charges may never be captured, they are listed separately, and there should be wording to that effect.

Merchants can also choose to separately authorize and capture charges themselves, extending step 4c. We use the simplified system, leaving it up to our processor and receiving an immediate yes-or-no answer to each charge attempt.
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