The dual message system is a payment processing workflow that has two distinct stages: authorisation and clearing. In simple terms, the merchant communicates with the issuer twice to send two different messages. Each message contains unique information and triggers a specific response.
The dual message system differs from the alternate workflow option: single message system. With the single message system, the merchant only communicates with the issuer once. Both authorisation and settlement are handled in a single message.
There are several reasons why a merchant might prefer the dual message system over the single message system.
- The dual message system is ideal when transaction amounts require flexibility. For example, a waitress needs the ability to authorise one amount and settle another amount after the tip is added. A hotel operator won’t know the final transaction amount at check-in because a guest might get room service or use the mini bar.
- The dual message system also offers flexibility for order fulfillment. The merchant can wait until the merchandise ships to charge the card. Or maybe the merchant wants to be able to ship partial orders, sending out items piece-by-piece.
- The dual message system allows the merchant to void transactions. If a fraudster initiates an unauthorised transaction, the cardholder might see the authorisation hold and reach out to the merchant directly to inquire. This would allow for a void before the transaction is settled.
Both Mastercard and Visa offer merchants a dual message system. However, Mastercard handles the workflows a little differently than Visa. Mastercard has a list of chargeback reason codes for the dual message system and a different list for the single message system. Dual message system reason codes are typically four digit — like 4808. Single message reason codes are two digits — like 08.
Regardless of whether your business uses dual message or single, AltoPay can help you create an efficient, cost-effective payments strategy.
