Authorize.net merchant account to credit card transfer of funds

Question

Is it possible to transfer funds from my authoriz.net merchant account to customers account by (cc number or by bank account number)? I haven't heard cc number can be used to accept or deposit money to increase the credit limit.

This is not a refund but a fresh transaction where merchant will give money to the customer.

Thanks

Answer 1

No, this is not possible. Both Authorize.Net and your merchant account do not allow fund transfers.

edit

Unlinked credits are not fund transfers. They are refunds which are not tied to a specific transaction in Authnet's system. They are not allowed to be used for fund transfers by both Authnet and your merchant account provider (as per their contract). If you do fund transfers this way you will get your account shut down and be banned from accepting credit cards by being added to the match file.

Once again, this is not a fund transfer and is not allowed to be done as such.

Answer 2

Dmaze,

It is possible to issue what is called an Unlinked Credit in the Visa/MC system. Authorize.net supports this pending you are approved for it and your merchant acquirer has approved you for it. However, as John correctly mentioned, this is probably not going to be allowed for your use case. It is generally leveraged only when issues a refund on a card transaction that was authorized more than 180 days ago. For more details on this, see the Authorize.net FAQ on refunds.

1. Authorize.net Refunds - https://support.authorize.net/authkb/index?page=content&id=A472

What you probably want to do is apply use an ACH solution for this type of funds transfer, which would be called an "ACH Credit" and 'pushes' money to a valid bank account from a merchant. You can read more about ACH here: https://www.nacha.org/what-is-ACH