We sat down with our CTO, Matt Collinge, for some insights into this new technology we are introducing on Monday 17th of September, which will allow us to pass more information in real time to your payment card issuers, about the transactions you’ve made with us.
How are transactions processed?
When you make a payment, in addition to the amount the goods or services cost, merchants send through an MCC, or Merchant Category Code, to your payment card processor. Every transaction that’s made with a credit or debit card will be assigned an MCC, which represents the category the respective merchant or business fits into, as well as the level of risk.
For more information on how we process transactions see here: What can you do in 1 second?
How will this new technology change the way Curve processes transactions
We are changing the way we send MCCs to our customers’ underlying payment card issuer. Curve acts like a merchant during part of the transaction processing flow. Previously, we sent the same MCC for all transactions, which made sense as most merchants only fit in one category. Curve is obviously not a ‘normal’ merchant so we found a way to innovate that enables us to send more accurate information on a transaction-by-transaction basis.
How will it affect our customers?
This has several benefits for Curve customers. For the vast majority the acceptance rate will improve, as the decision to accept or decline a transaction will be made with more complete information. For customers who use other FinTech companies, you will be able to see more information regarding your transactions on your underlying payment cards’ statements, as we will now be passing more accurate MCC information to your financial institutions. Another benefit is that your purchases with Curve may earn you card rewards for certain eligible payment cards.
Some transactions may result in charges being levied by certain issuers, dependent on their own terms of service. For example, your card issuer will be able to identify cash withdrawals from your payment card, therefore withdrawing cash from a credit card is not recommended.
We are constantly working on finding ways to simplify our customers’ financial lives. This is a small, yet very exciting step towards realising this vision.