Cashless payments company Nayax Ltd. is now offering incremental authorization for EMV-compliant multi-vend transactions for food and beverage vending machine operators in the U.S.
Nayax chief executive Carly Furman confirmed that the fintech company is the first cashless solutions provider to offer EMV-compliant incremental authorization for vending transactions in the U.S.
Incremental authorization allows multiple product selections at a vending machine with a single transaction. But unlike traditional multi-vend, Furman explained, the initial preauthorized amount is only for the lowest priced item in the machine vs. what is typically the highest total transaction amount and so the transaction compliantly settles for the final amount.
This capability is expected generate greater revenue potential for Nayax's operator customers by making it easier for consumers to quickly purchase more with each transaction. Working closely with card brands and processing partners, Nayax addresses the need for operators to accept EMV-compliant, multi-vend transactions without large preauthorization holds.
Incremental authorization transaction flows are commonly found in many industries, including fuel and parking. The process of incrementally adjusting a lower authorized amount upward to the final settlement price lessens previous issues associated with multi-vend transactions that created overdrafts and confusion for consumers.
Currently, the incremental authorization flow is available for tap and insert EMV credit card transactions on multi-vend capable vending machines enabled with a Nayax VPOS Touch reader.
"The advantages to operators implementing multi-vend with incremental authorization span the entire customer journey," Furman noted. "With consumers spending more, operators benefit from an increase in revenue."
Additionally, since incremental authorization eliminates the excessively high preauthorization holds that lead to negative consumer experiences, operators benefit from reduced chargebacks and fewer unhappy customer service calls due to what are often perceived as overcharged purchases appearing as pending transactions on consumers’ credit card statements.
“At Nayax we pride ourselves on listening to the pain points of our operators and finding solutions to fix these problems," Furman said. "We are excited to be the first payment solution provider to implement EMV incremental authorization and solve the negative consumer experience historically associated with multi-vend transactions in our industry."