Gateway Funding

Overview

Interact Gateway Funding combines the capabilities of Gateway and Funding, allowing clients to retain control over transaction authorization while leveraging Qolo for real-time funding. This approach ensures that transactions are only funded after the client has reviewed and approved them, eliminating the need for preloaded card balances.

With this model, clients receive authorization requests from Qolo, apply their own approval or decline logic, and, if approved, Qolo moves the necessary funds in real-time from a designated program funding account to the cardholder’s account. This approach provides a balance between control and automation, making it well-suited for businesses that want custom authorization rules but also need just-in-time funding for transactions.

When to Choose Gateway Funding

If program:

Wants control over which transactions to approve or decline.
Does not want to maintain pre-funded balances on card accounts.
Requires real-time funding to be executed only after transaction approval.
Hascustom authorization logic that must be applied before a transaction can be funded.
Needs a flexible model that allows manual authorization decisions while automating funding.

How It Works

The Gateway Funding process ensures that transactions are authorized by the client before funds are allocated, following these steps:

1. Transaction Request Initiation

A merchant sends an authorization request to the card network.
The card network forwards the request to Qolo.

2. Qolo Pre-Authorization Checks

Qolo evaluates the request based on predefined program rules, including:
- Program funding account balance check
- Address Verification System (AVS) validation
- Merchant category code (MCC) restrictions

3. Client Authorization Decision

Qolo forwards the request to the client’s authorization endpoint.
The client reviews the transaction and responds with one of the following:
- Approve – The transaction is authorized, and Qolo will fund it.
- Decline – The transaction is rejected.

4. Funding & Final Authorization Response

If approved, Qolo moves the necessary funds from the client’s program funding account to the cardholder’s account.
Qolo sends the final authorization response to the card network.

5. Transaction Settlement & Fund Reconciliation

The transaction is settled through the standard clearing process.
After settlement, any remaining balance is returned to the funding account.

Response Capabilities

Clients utilizing Gateway Funding can configure their authorization responses to include additional transaction control parameters.

Response Capability	Description
Approval or Decline Decision	Clients can determine whether to authorize or decline a transaction.
Partial Authorization Amount	Clients can approve a reduced amount if the merchant supports partial approvals.
Program Funding Account Selection	For businesses with multiple funding accounts, a specific account can be selected to process the transaction.
AVS Override	Clients can override Qolo’s AVS check by providing updated address verification details.
Funding Limits	Clients can impose authorization-based funding limits to prevent overfunding.
Merchant Category Code (MCC) Restrictions	Transactions can be approved or declined based on MCC rules to prevent spending at restricted merchant types.