Transaction Processing
Transaction Process
A user shall be able to initiate a transaction irrespective of their KYC status provided they are not in “Suspended” status. However, user transactions shall not be processed unless their KYC is verified. A transaction undergoes the following checks before it is eligible for processing:
Risk Score
All transactions which clear the GeoIP check are assigned risk scores by the system based on various attributes of the transaction and the user. The risk score system is utilized to identify potential fraud transaction and avoid cases of reversals and chargeback. Further processing of the transaction is dependent on the risk score assigned to the transaction. The details of the score and actions taken by the system are as follows:
1
0 to 7
Safe
Transaction is processed
No Action required
2
7 to 70
Moderate Risk
The transaction is put on hold
SMP needs to review the transaction and request Inyo to either process or cancel the transaction.
3
70+
High Risk
The transaction is put on hold
SMP needs to review the transaction more diligently and request Inyo to either process or cancel the transaction.
Balance Check
This check is only applicable in the case of ACH transactions as balance availability is automatically verified in the case of debit cards. In this check, the balance in the user’s bank account is verified to check if it covers the amount of transaction (incl. fees) being initiated by the user. The purpose of this tool is only to verify the availability of funds for an ACH transaction, and not holding the funds in the user’s bank account for the transaction initiated. This tool is an indicative tool to identify transactions initiated without sufficient balance, however, does not cover scenarios where the user removes funds from his bank account after the ACH transaction has been forwarded for processing. Any transaction that fails the balance check is canceled. The Platform does not perform Balance Check on transactions unless the KYC status of the user is in “Verified” status.
If the system is not able to conduct the balance check for a transaction, it is placed on hold. The hold reason will be displayed in the dashboard for every transaction. Before releasing such hold transactions, further action should be taken on the basis of hold reason which was displayed on the dashboard. A transaction may be placed on “Hold” due to Balance check for the following reasons:
Error occurred in BALANCE_ENQUIRY service when the login details of this item have changed (credentials, MFA, or required user action
In this case the user might have changed their bank logins details and SMP needs to communicate with the user and ask them to login and update their bank details. Once the user logs in their credentials the bank status moves from “LOGIN_REQUIRED” To “VERIFIED” the transaction will be automatically released for further processing. The bank status of the sender can be seen from the user profile. There may be cases when the user gets stuck in the Login required status after attempts to update their credentials, in such cases, Inyo can skip the balance check feature and release the transaction for processing after communications with the SMP.
Error occurred in BALANCE_ENQUIRY service, Exception: this institution is not currently responding to this request. Please try again soon
This error message will be received when the added bank account is not responding during the balance check due to the process error from the user’s bank. System will hold this transaction. Inyo will release the transaction after the error is resolved or incase this issue is not fixed within short time, Inyo and SMP may communicate to take the next action to either skip the balance check and process the transaction or cancel the transaction. In case, if the balance check is skipped there can be risk of the transactions getting returned with reason insufficient funds. Thus, SMPs needs to confirm if they want to proceed with releasing the transaction without balance check with Inyo support team. After the confirmations are received transactions will be released by Inyo by skipping balance check or canceled.
Error occurred in BALANCE_ENQUIRY service ITEM_LOCKED
The financial institution indicated that the user's account is locked. SMP should communicate with the user and the user will need to work with the institution directly to unlock their account. Once the user confirms that the account is active, Inyo can release the transaction.
Error occurred in BALANCE_ENQUIRY service, User setup required
In this case, the user’s bank account setup is not complete and thus, the user must log in directly to the financial institution and take some action (e.g. agree to updated terms and conditions, change their password, etc.) before our system can access their accounts. After the user confirms that the setup is complete, then Machnet can release the transaction.
Error occurred in BALANCE_ENQUIRY service, Invalid Credentials, MFA or send method
This is a case where the financial institution indicated that the credentials, MFA response provided were invalid. Our system could not match up the MFA OTP send method to one of the ones we sent to the user or the institution rejected it as invalid for some reason. In such case, the transaction needs to be canceled and the user needs to add another bank to create a transaction.
Note: Support teams of MACHNET and the SMP needs to communicate properly and work closely to handle transactions that are on hold due to the balance check feature.
Transaction Cancelation
The user will have the right to cancel their transaction until their transaction has been delivered. If the user wants to cancel a transaction at any point of time before it is paid out, they must be guided to contact the customer support (Via phone and email) to cancel their transaction. The transaction will be canceled if the transaction has not been sent for batch processing. Else if the transaction has already been processed, the transaction needs to be refunded.
Transaction cycle & Processing Timelines
ACH Transactions
The processing of ACH transactions is completed within two (2) to three (3) business days. As ACH processing works on a batch basis, the time taken to process any transaction is dependent on the transaction creation time. The settlement timeline for transactions created in the system shall be as follows:
Transaction created Before cutoff time
(7 AM PST)
Transaction created After Cutoff time
(7 AM PST)
Sunday
Monday
Monday
Monday
Monday
Tuesday
Tuesday
Tuesday
Wednesday
Wednesday
Wednesday
Thursday
Thursday
Thursday
Friday
Friday
Friday
Monday
Saturday
Monday
Monday
Cut Off Time:
The cutoff time is the time limit for batching transactions for ACH processing for any business day. All transactions created in the system before the cutoff time are included in the ACH batch for the day. All transactions created after the cutoff time will be included in the ACH batch of the next business day.
The cutoff time is 7 AM Pacific Standard Time (PST).
Settlement Time:
The ACH batch for any business day is completed no later than 12 PM PST for the particular business day.
Debit Card Transaction
All debit card transactions are processed by the end of the business day in which they were forwarded for processing.
Transaction Status
All transactions initiated in the system go through one or more of the below mentioned statuses:
Initiated
Any transaction initiated by a user is placed in Initiated status. The transaction remains in INITIATED status until the Balance check for the transaction is completed.
Pending
Any transaction that has undergone all the necessary checks and are ready to be forwarded for processing are placed in PENDING status.
Processed
Transactions that have completed processing are placed in PROCESSED status.
Canceled
All canceled transactions are placed in CANCELED status. A transaction in the system may be canceled for the following reasons:
User requests for cancelation of transaction within the 30minute cancelation window;
User requests for cancelation after the 30minute window and the transaction has not been moved to PENDING status;
Transaction is assigned a High-risk score;
Transaction fails balance check;A transaction placed on “HOLD” is canceled by MACHNET and/or SMP;
A user is “Suspended” by SMP.
Refunded
A transaction that has been refunded to the user is placed in REFUNDED status.
Hold
A transaction is placed on HOLD status in the following scenarios:
If a transaction is created by a user in KYC statuses other than “Verified”;
If a transaction fails GeoIP check;
If a transaction is assigned a Moderate Risk score;
Returned
Any transaction that has been returned or if the user files a chargeback for any transaction, it is placed in RETURNED status. For further information, please refer to the section below on “Returns”.
Transaction limits
The transaction limit for any user shall be as per the CIP document.
Tier Upgrade Process
Users can upgrade their tier limits by submitting additional KYC documents and details corresponding to the respective tiers. Any tier upgrade needs to be initiated by the user. The process of handling tier upgrade is as follows:
Step 1: The user must initiate a tier upgrade from their dashboard.
Step 2: Once the tier upgrade request is initiated, the user will be asked to provide necessary documents/information in their dashboard. The user is required to upload the required documents/information and submit them for verification.
Step 3: Once the documents are uploaded, MACHNET shall review such information/documents. If the provided documents/information are verified, the user will be upgraded to the new tier.
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