Handle Overcaptures
Overcapture allows merchants to capture an amount higher than the authorized amount for a card payment. Unlike incremental authorizations, it does not result in additional authorization events. Overcapture is allowed as part of card scheme rules to provide flexibility and efficiency in transaction processing. As such, Airwallex is required to honor such transactions if they fall within certain MCCs and the allowable card threshold. The table below outlines the MCCs and allowable thresholds.
Merchant/Transaction Type
| Merchant/Transaction Type (Table 7-10 ) | Permitted Difference between Authorization Amount and Capture Amount |
|---|---|
| MCC 4121 (Taxicabs and Limousines) | Up to 20% |
| MCC 5812 (Eating Places and Restaurants) | Up to 20% |
| MCC 5813 (Drinking Places – Bars, Taverns, Nightclubs, Cocktail Lounges, and Discotheques) | Up to 20% |
| MCC 5814 (Fast Food Restaurants) | Up to 20% |
| MCC 7230 (Beauty and Barber Shops) | Up to 20% |
| MCC 7298 (Health and Beauty Spas) | Up to 20% |
| Cruise Lines, Lodging | Up to 15% |
| Vehicle Rental | The greater of 15% or USD 75 (or local currency equivalent) |
| Other Cardholder-initiated Transactions in the Card-Absent Environment | Up to 15% |
Implications on Transaction Limit
As a transaction is authorized after checking against the transaction limit using the authorization amount, in the event of an overcapture, there could be occasions where the eventual capture amount exceeds the spend limit by the percentages outlined above for transactions that fall within the listed MCCs. This can also result in a negative wallet balance. As such, you should ensure that your wallet has sufficient funds if your cardholder frequently spends in the MCCs listed above.
In such cases, if the overcapture is recognized as fraudulent, you should initiate a dispute against the merchant.