I sometimes receive requests for information from my readers on various topics. I think it is useful to share the questions I consider important on my website as well, in order to spread the knowledge.
Question:
Hello Mr. Arif, I was wondering whether installment mail order transactions are still available. In other words, is it enough to have a limit equal to the installment amount, rather than the full transaction amount?
Answer:
The transactions you mention fall under recurring transactions, and they require a system definition made through a screen. They are generally used for insurance payments and similar purposes. They have a separate interface and their own user code/password. These transactions are treated as Mail Order transactions. For this type of transaction, it is sufficient for the card limit to be equal to the installment amount. This type of setup cannot be done through standard POS devices.
What are the advantages of a Mail Order transaction?
First of all, in installment mail order transactions, the amount blocked and reflected on the card is not the full transaction amount, but only the installment amount.
For example, in a 1,000 TL transaction with 4 installments, the card is charged 250 TL each month for 4 months. The limit used on the card is not 1,000 TL; it changes so that only 250 TL is used each month.
What are the disadvantages of a Mail Order transaction?
- Since all card information is shared for the card to receive authorization, the reliability of the company carrying out the transaction should be questioned.
- There is a risk that the card information could be captured by malicious individuals. For this reason, using a virtual card for Mail Order transactions would be beneficial.
How is the Mail Order authorization enabled on a card?
The Mail Order authorization is held on the credit card itself. To enable the mail order authorization on the card, the user should either call the bank's Customer Contact Center or enable the card's mail order authorization through Internet Banking/Mobile Banking.
If the Mail Order authorization is disabled, will the transaction receive authorization?
For the transaction to be completed successfully, the Mail Order authorization must be enabled on both the card and the POS.
If the card does not have Mail Order authorization, the transaction is declined with error code 57.