Charge Lifecycle

A charge is a card transaction, including its complete lifecycle. A new charge request triggers a sequence of processes, indicated in the diagram below.

Silverflow is not part of the settlement process but supports its clients with data.

Authentication

Authentication is the step that verifies the cardholder's identity. For online payments, this is often done through methods like 3D Secure.

Authorization

Authorization is the real-time approval of a transaction. When a customer makes a purchase, a request is sent to their bank (the issuer) to check if they have sufficient funds and if the card is valid. If approved, the bank places a temporary hold on the funds.

Clearing

Clearing is the process of submitting the required transaction data to the card networks so that reserved funds can be transferred from the cardholder’s account to the merchant’s account. This happens after the authorization and involves finalizing the transaction details before the actual money transfer.

Settlement

The Settlement process involves transferring funds between the acquirers and issuers. The card network facilitates moving the money from the issuer's account to the acquirer's account. After the settlement is complete, the acquirer can deposit the funds into the merchant's bank account. Silverflow provides the necessary data to help you reconcile these funds, but we don't handle the settlement process itself.

Reconciliation

Reconciliation is the process where the settlement funds received are matched with the individual charges sent for clearing. It also provides insights into other mutations that have impacted the settlement amount, such as scheme fees or chargebacks.

Transaction Lifecycle Identifiers

Tracking a payment from authorization to settlement involves several types of identifiers. The below guide covers both the keys managed within the Silverflow platform and the standard identifiers generated by the card networks like Visa and Mastercard.

Silverflow Identifiers

These are Silverflow generated identifiers used to track actions specifically within the Silverflow ecosystem.

chargeKey: This is the primary, immutable identifier for a transaction. It is generated by Silverflow when a charge is created and is used to link all subsequent actions, such as refunds or manual clearing, throughout the transaction's lifecycle. The chargeKey is also present in reconciliation details to associate settlement information with the original transaction.

Client Identifiers

Clients can attach their own identifiers to API requests to correlate actions with their internal systems.

transactionReference: This is the client's custom identifier for an entire transaction lifecycle. When a client provides a transactionReference during an initial action like a 3DS authentication or a charge, it will be returned in the response and also included in reconciliation reports. This allows them to link all related steps using their own system's ID.
actionReference: This is the client's custom identifier for a specific follow-up action performed on an existing charge. For example, if multiple clearings are performed against a single authorization, assigning a unique actionReference to each one allows for clear differentiation in reconciliation files.

Card Network Identifiers

Card Network Identifiers are standard reference numbers generated by the card networks.

During Authorization

When a charge is approved, the API response includes several raw identifiers directly from the card network. For example,

System Trace Audit Number (STAN): A key identifier (ISO 8583 Data Element 11) used by all parties in the payment chain to trace a transaction.
Retrieval Reference Number (RRN): A unique 12-character identifier (ISO 8583 Data Element 37) required for all transaction inquiries and chargebacks.
Network-Specific IDs: The response will also contain identifiers unique to each card scheme, such as the banknetReference for Mastercard or the transactionIdentifier for Visa.

During Clearing and Reconciliation

After a charge is authorized, a new identifier is generated for the clearing and settlement stages.

Acquirer Reference Number (ARN): The ARN is a unique number assigned to a transaction that tracks it from clearing through to settlement. Silverflow creates the ARN on the client's behalf for each clearing action.