The National Payments Corporation of India (NPCI) on January 02, 2024, issued a notification regarding the RuPay Deferred Authorization solution for Credit cards.
The following has been stated: -
•Deferred Authorization payment enables credit card purchases in offline scenarios like flights, cruises, etc. In this transaction, the authorization process is deferred until the POS terminal reconnects back, to offer the purchase of various products and services
•To enhance the consumer experience all, the validations of card Present POs transactions shall be applicable for Deferred Authorized transactions. The relaxation in the requirement of an Additional Factor of Authentication (APA) for Card transactions in Contactless mode shall be as per the RBI circular- RBI/2020-21/71 DPSS.CO.PD No.752/02.14.003/2020-21 dated December 04, 2020.
•Some of the key features:
1. The Issuer shall validate and respond to transactions when the device reconnects back to the network and the transaction is sent to the issuer for validation.
2. The acquirer shall equip the POS terminals for temporarily deferring the authorization process during the initial purchase by securely storing the card data and sending the transactions for validation post device coming into the network.
3. Such merchants may offer products for purchase by use of POS terminals for card payments, and ensure completion of the transaction post device coming in network.
The detailed notification is given in the document attached below.
[Notification No. NPCI/2023-24/RuPay/026]
