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Debt Recovery Transaction

Card schemes require merchants to support merchant‑initiated debt recovery. A
debt recovery transaction
retrieves outstanding debt when an aggregated end‑of‑day transaction is declined. This type of transaction is also required to remove a card from a deny list. You can also offer tap‑initiated debt recovery at the transit entry point or enable cardholders to initiate debt recovery online.

Figure:

Merchant-Initiated Debt Recovery Workflow
Workflow diagram showing the merchant-initiated debt recovery process