In payment systems, the term transaction refers to the operations carried out. Each transaction has its own distinct characteristics. For example, a Sale transaction made from a POS is different from a Sale Cancellation or a Cash Withdrawal made from an ATM.
So, by which field are these transactions distinguished?
This is where the Transaction Code comes into play, making this distinction possible. The Transaction Code is a field that is very important for the authorization and clearing system, indicating the type of transaction made from a POS or an ATM (Sale, Sale Cancellation, Refund, Cash Withdrawal, etc.).
In the clearing system, transaction type information is sent in the Transaction Code (TC) field.
Although the Transaction Code value can vary widely, the basic Transaction Code values commonly used are listed below:
05: Sales Draft or Representment
06 :Credit Voucher or Merchandise Return
07:Cash Disbursement or Representment
15:Sales Draft Chargeback
In short, in the clearing record,
- TC 05 –> Sale
- TC 06 –> Refund
- TC 07 –> Cash Withdrawal
- TC 15– > represents a chargeback.
