A processing code is a custom alphanumeric identifier that defines how the Pismo platform handles a certain financial operation type. Processing codes are integral to the transactions flow on the Pismo platform. The platform uses standard predefined processing codes to evaluate and process operations. You can use these codes to reflect your own transaction flows on the Pismo platform. You can also add and configure your own processing codes to suit your business operations. Transaction type represents the transaction characteristics that are created from an authorized financial operation. The transaction type identifies a transaction as either a credit or a debit and determines whether the transaction has a financial impact on the customer account. The processing code can have one or more transaction types configured, depending on whether one or more transactions can be created through the processing code. You can create custom transaction types on the Pismo platform to represent different kinds of financial operations as applicable to your organization. For more information on transaction types, refer to Transactions overview.

Processing codes enable you to configure a single operation to generate multiple transactions. Each processing code request creates an authorization that in turn generates one or more transactions of different transaction types, as illustrated below.

When you create a processing code and map it to one or more transaction types, this configuration determines:

• The operation's impact on account balance (positive or negative in most cases, or neutral in cases such as zero balance integrations).
• Whether to post an operation on the account statement.
• Optional processing code for a corresponding reversal operation.

You can then use the defined processing codes in the Pismo platform to:

• Define flexible transaction controls to validate an operation.

• Define an applicable fee model to apply to an operation.

  

Transaction flow

The simplified diagram and the steps below illustrate the basic transactions flow on the Pismo platform and how the platform uses the configured processing codes and their mappings to transaction types.

1. A client application makes a request that includes the processing codes.

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Transfer processing codes

You can use two different processing codes in a single request when it’s a transfer operation:

• One processing code that defines an operation to debit an internal account in the from array.
• Another processing code that defines an operation to credit an external account in the to array.

2. The platform evaluates the request, creates an authorization, and generates the authorization-event-1 event.
3. The platform uses the predefined mapping between the processing code and corresponding transaction types to create at least one transaction. The platform then generates the transaction creation-1 event for each created transaction.

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Authorization - multiple transactions

One authorization can generate multiple transactions: for example, one transaction for a principal amount and another transaction for an additional fee. These transactions can be of different types, debit or credit.

4. The platform updates the bank statement with the created transactions.

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Accounting implications

Processing codes and their relationships with transaction types have accounting implications. For example, if you have a debit operation, then the platform generates an accounting event for this operation. For more information, see the Accounting overview.

Payments configurations

You can configure processing codes, transaction types, their mappings, and other settings that manage how the platform will process operations in the payments and transactions flow. See Payments configurations for more information.

Standard processing codes

The platform has templates to associate standard processing codes with Pismo program types. The following templates are examples that can help you map the processing codes to the Pismo programs. Templates may include codes not applicable to your region.

Transaction banking

Accounts belonging to the transaction banking program types (current, internal, and correspondent).

Debit full balance

Accounts for core banking with balance controls within the Pismo platform.

* 0 represents a zero balance operation which does not positively or negatively impact any available account balance. For more information about zero balance integrations with a card network, such as Visa and Mastercard, see Full balance versus zero balance integration.

Credit full balance

Accounts for credit cards with balance controls within the Pismo platform.

Prepaid full balance

Accounts for prepaid credit cards with balance controls within the Pismo platform.