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2010/03/29

Credit Card Processing Bug Discovered

An important issue has recently come to our attention that we think everyone should be aware of. It is in regards to cash sales with a credit card.

First a little background information: When you create a Sales Order (SO) using a credit card, the SO will verify the funds on the card, which means it freezes that amount of money – the card isn’t actually charged. The money on the card is in effect set aside for you and the customer no longer has access to that amount. So if the customer has a $100 limit on their card and you freeze $80 they can only spend a further $20 or the card will be declined.

In NetSuite, you always create a cash sale when processing a credit card. If the charge is $50, you freeze the money and then that frozen money becomes a charge. The problem is the Charge Credit Card checkbox. If for whatever reason this box is not checked when you save the order, and then you return to the SO to edit the transaction and click the checkbox, the Cash Sale will immediately charge the card. This charge will not be linked to frozen funds from your original entry. So if the original SO verified $50, and then edited SO charged $50, you have effectively tied up $100 instead of $50.

The freeze is always released in about 3 days or so, but during this period the customer’s card is carrying an inaccurate balance which could result in them being declined for other purchases.

NetSuite is aware of this issue, but I am told this is not a Defect but an Enhancement Request.
The number I have is 119430 if you want to go vote on it.

This error seems to only be happening for users using Payflow Pro as their credit card gateway, which is being dropped by NetSuite anyhow. Payflow Pro users will still be able to continue using their services, which is why it is important to be aware of this issue.

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