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Card payments


Swan offers Mastercard debit cards to all of your account members. Swan cards are accepted everywhere Mastercard is accepted, though there can be risk-based restrictions imposed in certain situations. Mastercard's exchange rate applies to card transactions outside of SEPA.

Individual account holders are issued consumer debit cards, while company account holders receive business debit cards. The fee per card depends on your contract with Swan and is detailed in your Swan Terms and Conditions. Note that cards don't come with insurance.

General cards section

Refer to the general cards section for information about designing and issuing cards, as well as explanations of how virtual, physical, and digital cards work at Swan.

Card transactions​

Each card transaction object contains specific payment data in the CardTransaction interface, including:

  • Terminal ID: unique identifier of the merchant's terminal in the Mastercard network
  • Merchant ID: unique identifier of the merchant in the Mastercard network
  • Merchant name
  • Merchant city
  • Merchant postal code
  • Merchant Category Code (MCC)
  • Original amount and currency

Fraud and card transactions​

When a card holder is a victim of fraud, they must declare it to Swan. If, after an internal investigation, the chargeback is admissible, Swan creates a new InternalCreditTransferIn credit transaction with the status Booked, which impacts the account's booked balance.

The chargeback transaction is linked to the same payment as the initial card transaction.

suspicion of fraud

At the slightest suspicion of fraud, block all eCommerce payments temporarily by updating eCommerce to false for the concerned card product. Additionally, you can temporarily or permanently block physical cards and permanently cancel virtual cards.

The card holder then needs to email, after which Swan can issue a new card.

Card transaction statuses​

Account balances

There's a close link between transaction statuses and account balances. Refer to explanations of types of account balances in the accounts section.

Card transaction statusExplanation
PendingCard payments initiated with an authorization granted. The payments aren't debited from the account yet, but they impact the account's Pending balance.

Next steps:
  • When funds are received, the status for the debit transaction changes to Booked and the status for the authorization transaction changes to Released.
  • Pending card transactions can also be Rejected.
BookedCompleted card payments that are displayed on the official account statement. These card payments have been debited from the account, and they impact the account's Booked balance.
ReleasedCard authorizations are released for specific reasons. Most of the time, the funds are captured when the merchant requests the actual debit. Authorizations might also be released by the merchant, and they can expire.

When an authorization is released without a debit (clearing), the account's available balance increases by the amount of the authorization.
RejectedDeclined or refused card payments. For example, you, Swan, Mastercard rejected authorization for the payment, or the account's Available balance isn't sufficient to complete the card payment without resulting in a negative balance.

Authorization and clearing​

Processing card payments involves two key steps:

  1. Getting authorization for an initiated payment.
  2. After some time, clearing that payment.


When a Swan card holder initiates a payment, the merchant asks Swan, as well as Mastercard, for a payment authorization. An authorization is permission from the card holder's issuing institution to debit the account. For example, they might ask Swan to check that the card holder has enough money to cover the purchase.

Authorizations occur predominantly online, requiring the merchant to be connected to the internet and card network. Offline authorizations can be accepted in certain circumstances. All linked card transactions (authorizations, debits, refunds, and chargebacks) have the same Payment ID.

Authorization transactions​

Any time an authorization is requested, a CardOutAuthorization transaction is created. Swan shares the authorization decision with you through payment control. Therefore, the Partner (you), Swan, and Mastercard all work together to accept (authorize) or reject all card transactions.

When an authorization is accepted by Swan, Mastercard, and you, the transaction is created with the status Pending. The account's Available balance and the card's spending limit are updated accordingly.

If an authorization is refused by Swan, Mastercard, or you, the transaction is created with the status Rejected. The reasonCode explains why the authorization was refused.


Authorizations are valid for a set amount of time.

At Swan, an authorization's validity period is between 10 and 30 days depending on the type of card transaction. After the validity period, the balance that hasn't been debited is Released and the card's spending limit updated accordingly.

Find an authorization's expiry date with the API: PendingTransactionStatusInfo > pendingEndDate.

Offline authorizations​

It's possible that a physical or in-person point of sale can't complete online authorizations. For example, some situations in which online authorizations might not work include paying at parking kiosks or toll booths, making purchases while on an airplane or other mode of travel, and network failure. In these situations, a Swan card holder can still initiate many payments.

Partial authorizations​

Consider the gas station example. When a card holder inserts their card into the gas station's point of sale, the gas station requests a preauthorization of 110€. However, if the Swan account's Available balance is only 55€, Swan can accept a partial authorization for just 55€.


After authorization, or when the merchant gets back online in the case of offline authorizations, the payment goes through clearing. During clearing,the payment is processed and the funds are transferred from the card holder's account to the merchant's account.

Clearing usually occurs one to three days after the authorization, depending on the merchant. The process is not absolute, however, so make sure to review the examples section for several situational flows. For example, all of the following can exist: authorizations without debit, debits without authorizations, and multiple debits for the same authorization.

Partial and exceeding debits​

In situations where only part of an authorized amount is debited (for example, when only part of an order can be fulfilled), Swan updates the initial transaction to reflect the reduced Pending amount. Users can have several partial debits (consider the online shopping example).

If the debit amount exceeds the amount initially authorized, Swan links both transactions under the same payment to ensure accurate accounting and tracking. This also applies if a debit occurs after the authorization expires.

Initiating a debit transaction​

When a merchant requests debit on a card, Swan receives the information asynchronously and creates a new CardOutDebit transaction with the status Booked. This transaction impacts the account's Booked balance.

When a debit transaction is linked to an authorization, the corresponding Pending CardOutAuthorization transaction is updated with the remaining amount to be debited, and the card's spending limit is updated accordingly. If the updated authorization amount is equal to or less than zero, the status changes to Released; otherwise, the status remains Pending.

Clearing a credit transaction​

When a merchant requests credit on a card, Swan receives the information asynchronously and creates a new CardOutCredit transaction with the status Booked. This transaction impacts the account's Booked balance.

If the credit request is to reverse a previous debit transaction, a new CardOutDebitReversal transaction is created linked to the original debit payment.


Some merchants don't follow the classic authorization and debit payment flow. Discover alternative payment flows that work for different use cases. These are examples, not rules; merchants control their own flows and can makes changes at any time.

Consider right-clicking each image and opening it in a new tab.

Taxi | Authorization + partial debit clearing

Sometimes, a merchant authorizes a default amount, then debits the real amount later.

Consider a card holder using a taxi app:

  1. The card holder orders a taxi on the app.
  2. The merchant requests an authorization of 50€ to verify that the card holder can cover the cost of the trip.
  3. About 1-3 days after the trip:
    • The taxi company debits the account 37,50€, creating a second transaction with the status Booked.
    • The remainder of the total authorized amount after the Booked transaction is 12,50€.
  4. 10 days after the trip, the remaining authorization amount is released.
Authorization and partial debit example using taxi app
Gas station | Preauthorization + authorization + debit clearing

Automated fuel dispensers make a preauthorization request to check if the card is valid and has enough money.

Consider a card holder filling up their gas tank:

  1. The card holder enters their card in the gas station's point of sale.
  2. The merchant requests a preauthorization of 110€.
  3. The card holder fills their vehicle.
  4. The merchant authorizes the exact amount (56,23€) that was used and releases the preauthorization.
  5. A few days later, the merchant debits the account the exact amount (56,23€) and the authorization is released.
Preauthorization, authorization, and debit example using gas station

This flow can also be used for hotel bookings that are made in advance, but not paid for until after the stay is over.

Online shopping | Multiple debit authorizations + debit clearing

When ordering multiple packages online from a reseller-type website, it's common to authorize multiple debits at once.

Consider a card holder ordering two items fulfilled by different sellers:

  1. The card holder orders two packages online.
  2. The merchant requests an authorization for the total amount (83,98€).
  3. The merchant debits the amount corresponding to the first package (30,99€) when the card holder receives the package, which updates the authorization.
  4. The merchant debits the remaining amount (52,99€) when the second package is received. The authorization goes to 0€ and is released.
Multiple debit authorizations at one time example using online shopping
Online return | Authorization + debit clearing + refund

There are multiple ways to reimburse a payment. The most straightforward is for the merchant the refund the debit transaction (debit reversal). The merchant must be able to link the refund to the debit.

Consider a card holder who orders and returns a package, all online:

  1. The card holder orders a package online.
  2. The merchant requests an authorization for the amount (23,98€).
  3. When the card holder receives the package, the merchant debits the account the amount (23,98€) and the authorization is released.
  4. The card holder returns the package, and the merchant reverses the debit on the account (23,98€).
Authorization, debit, and refund using online shopping returns
In-store return | Authorization + debit clearing + refund

When items are returned in-store, they can be hard to link back to the debit. When a merchant needs to refund a customer but can't connect the refund transaction to the original debit, they create a new credit transaction.

Consider a card holder buying then returning an item in-store:

  1. The card holder buys an item in-store.
  2. The merchant requests an authorization for the amount (39,99€).
  3. A few days later, the merchant debits the account of the amount (39,99€) and the authorization is released.
  4. Within the merchant's return window, the card holder returns the item and the merchant credits the account of the amount (39,99€).
Authorization, debit, and refund using in-store shopping returns
Canceled transaction | Authorization + release

To cancel a transaction, some merchants release the authorization to free up the amount that was requested.

Consider a card holder placing an online order, then canceling it before the order ships:

  1. The card holder orders a package online.
  2. The merchant requests an authorization for the amount (23,98€).
  3. The card holder cancels the order before it ships, and the merchant releases the authorization.
Authorization and release example using a canceled transaction
Booking a hotel | Multiple authorizations + debit clearing

When booking a hotel room, the hotel performs a preauthorization request to confirm the card is valid and to reserve all or part of the funds.

Consider a card holder reserving a hotel room online:

  1. The card holder enters their card details online to cover the room, but chooses the option without breakfast.
  2. The hotel requests a preauthorization of 300€.
  3. When the card holder arrives at the hotel, they ask to add breakfast to their booking.
  4. The hotel releases the first preauthorization and requests a second of 350€.
  5. A few days later, the hotel debits the account the exact amount (350€) and the second preauthorization is released.
Multiple authorizations and debit example using booking a hotel
Purchase on airplane | Debit clearing only

In some situations, the merchant's point of sale isn't connected to the internet and the concerned card network. Certain payments are allowed offline, and these debits are done without a previous authorization. However, the card holder can dispute the debit.

Consider a card holder making a purchase on an airplane (such as food or duty-free items):

  1. The card holder uses their card to initiate a 100€ purchase.
  2. When the merchant connects to the internet, they don't perform an authorization, but instead debit the amount directly.
Debit only example using purchasing offline on an airplane

3-D Secure​

3-D Secure (3DS) is an extra security layer for online card payments. All Swan cards, including single-use virtual cards, are subject to 3DS compliance; however, because single-use virtual cards require consent when being creating, 3DS is more seamless.

With 3DS, card holders are required to perform Strong Customer Authentication before finalizing their payment. As a card issuer, Swan must comply with the European Revised Directive on Payment Services (PSD2). PSD2 governs all payments in Europe and mandates Strong Customer Authentication for some online payments.

Most European merchants use 3DS for all transactions, with a few exceptions. If a payment should require 3DS and doesn't (which probably means the merchant doesn't have the correct configuration), Swan rejects the operation.

3DS exception

In the case of recurring payments, such as subscriptions and automatic top-up, the merchant is only required to use 3DS during setup and not for subsequent recurring payments.

Swan designed a PSD2-compliant two-factor authentication (2FA) solution based on Mastercard's 3DS Smart Interface. Swan automatically detects card payments that require additional security and triggers the 3DS consent flow. Your card holders are instructed to validate their online payments and can do so directly from their mobile phone.

There are two notable differences between 3DS and regular consent.

  1. Swan requires 3DS for online transactionsβ€”most transactions without it are refusedβ€”but it's up to the merchant to request 3DS which initiates the consent flow.
  2. Card holders always receive a text message, even if they're already on their mobile device and regardless of your notification preferences.

Enriched transaction information​

In development

Providing enriched transaction information is currently in development. Feel free to review this section to understand how the feature will work when live.

When reviewing their transaction history, card holders can see enriched information (more detailed data) about the merchant and the transaction. Providing enriched transaction information improves the user experience for you and your users. For example, enriched information can reduce chargebacks and decrease the need for customer support.

You can retrieve this information with the API and view it on your Dashboard by going to Data > Transactions > Details. If you use Swan's Web Banking interface, enriched transaction information is available for your users automatically in their History list.

Enriched transaction information is only available for card transactions at this time. It's available for all card transactions dating back to the beginning of Swan.

Swan enriches card transactions with the following data (as availability allows):

enrichedMerchantNameMerchant brand nameCarrefour
logoUrlMerchant logoSmall image of the merchant's logo, or, if no logo is available, the category icon
categoryMerchant categoryGroceries
subcategoryMerchant subcategorySupermarket
isSubscriptionSubscription indicator booleanYes or No
Merchant contact detailsexample[@]
Location detailsParis
France (FRA)
carbonFootprintCarbon footprint in micrograms of CO2 emitted546 micrograms

Displaying enriched info​

In the API and on your Dashboard, enrichedTransactionInfo doesn't override the existing merchant information received during the classic transaction flow. If you use Swan's Web Banking interface, however, the enriched information overrides the merchant name.

The following image is sample enriched information as displayed on the Dashboard:

Example of enriched card transaction information on the Dashboard

Webhooks & enriched info​

Swan obtains enriched transaction information asynchronously to avoid processing delays and technical timeouts. The information is usually received within seconds after a card transaction is created.

Anytime enriched information is received, Swan triggers the Transaction.Enriched webhook. In the Transaction.Enriched webhook notification, the resource ID is the transaction ID.

If enriched information is received when a transaction's status changes, the Transaction.Enriched webhook is triggered after the Transaction.Pending webhook.

Subscribe to both webhooks to stay updated on your transactions.