Ask HN: What data points do POS systems send to Credit Card Companies / Banks?

What are modern POS systems sending to the banks and visa when you make a transaction?

Of course there would be the amount charged, but is the itemization from the receipt sent as well? For example, if I bought a $10.83 book, and 83 cents of that was tax, does VISA or my bank actually know that?

9 points | by baakss 1526 days ago

3 comments

  • tibbydudeza 1526 days ago
    POS systems don't do the bank interface anymore ... usually it is a piece of middleware sits on the POS that is used to control the actual interface to the bank and the PED (swipe devices).

    POS says I need payment to the value of amount ... middleware takes over and the POS get's back the card number encrypted (PCI) , auth code and cryptogram if chip (EMV) was used.

    Loyalty programs are a different matter altogether , full itemization is sent to the third party if you are enrolled in a program.

  • mjcl 1526 days ago
    The answer depends on the vendor and your bank. Beyond the basic vendor, amount and description, some vendors transmit additional details like tax breakdown, travel class and line-item data. I found a PDF from Wells Fargo[1] that details some of the information that's transmitted.

    On the bank side, I've seen the Level 2/3 information exposed to users of a purchasing cards (read: company credit cards). On the monthly statements we'd see line-item details for some vendors, like Best Buy. Travel purchases included flight segment details, cabin class, etc.

    [1] https://www08.wellsfargomedia.com/assets/pdf/small-business/...

  • asdf2020 1526 days ago
    Like most things it depends. Different payment-gateways support different levels of integration. The highest fidelity ones support itemization. The more information you provide typically reduces the fee that's applied.

    For more information google "Level 2/3 Credit Card Transactions"