ISO8583 Message Types for Transaction Processing

Posted on 19th Jan 2021 37042 views

ISO8583 Message Types for Transaction Processing  with Video guide of example in the Card Payments Simulator. Video below

Wikipedia already has a very in-depth description of the ISO 8583 standard.

In this article, we will have a more business-driven approach, focusing on the items that are actually used by banks and Processors in real life.

The Message Type is usually the first field in a transaction, and has 4 digits. Simply daid, they have the following meaning:

First digit is the version. 0 and 1 are used. 0 means version of 1987 while 1 means version of 1993. 2 means version 2003, not really used.

Second digit is the Message Class. 1 means Authorization, 2 means Financial, 3 File Updates, 4 for Revversals, 8 for Network Management. The rest are not so important.

Third digit is the the Message Function.

ISO 8583 v 1993 Supported Messages Types

Pre-Authorizartion and Authorization

These are the majority of transactions, they are used for POS Purchases, e-commerce, almost all card operations, including ATM.

When you go to the local supermarket to buy gum, and pay by card, it will be most likely this kind of transaction. 

Transalated in English, it means "Authorize me to buy this pack of gum" because it has no financial impact, it just allows the buyer to use the funds.

1100 : (Pre)Authorisation request

1110 : Preauthorisation response

1120 : Preauthorisation advice

1121 : Preauthorisation advice repeat

1130 : Preauthorisation advice response (also for repeat)

Financial transactions

These are the majority of transactions that are money transfer, direct debit, deposit, credits. They are called financial because they have an immediate impact on the account, meaning that the sender account is immediately debited, and the receiver account is immediately credited.

When you deposit money at the ATM, or pay your electric bill (automatically) from your account, it is likely this kind of transaction.

1200 : Financial transaction request

1210 : Response to a Financial transaction

1220 : Financial transaction advice

1230 : Response to a Financial transaction advice

File updates

Such transactions are used to 

1304 : File update request

1314 : Response to a File update request

1320 : File update request Advice

1321 : Response to a File update Request Advice

Reversals of previous transactions

1420 : Reversal advice

1421 : Reversal advice repeat

1430 : Response to reversal advice (also for repeat)

Reconciliation advice

1520 : Reconciliation advice

1530 : Response to reconciliation advice

Network management

Transactions  possible with thses messages

Sign ON Sign OFF

Change Key, Request new Key, Repeat request new key, Verify key

The command is given by Field 70 usually, because Processing Codes are not used for network management Transactions

1804 : Network Management request

1814 : Response to Network Management request

 ISO 8583 v 1987 Supported Messages Types

0100 : Preauthorisation request

0110 : Preauthorisation response

0200 : Financial transaction request

0210 : Response to a Financial transaction

0220 : Financial transaction advice

0230 : Response to a Financial transaction advice

0300 : File update request

0310 : Response to a File update request

0420 : Reversal advice

0430 : Response to reversal advice

0520 : Reconciliation advice

0530 : Response to reconciliation advice

0800 : Network Management request

0810 : Response Network Management request