Skip to main content
Card processors can be either classified as open or closed-loop processors. A processor is defined as being open-loop when it allows processing a subsequent transaction that had its initial transaction with a different processor. Additionally, open-loop processors generally support network tokens as well. A closed-loop processor on the other can only be used to make subsequent transactions that were originally started with the same processor. For these processors, subsequent transactions can only ever be created using the same proprietary PSP token, limiting its re-use.

​
Merchant-initiated transactions

As a consequence of the preceding, in the subsequent merchant-initiated transaction (MIT) scenario, there are limitations as to what connection can be used to process the transaction, regardless of what the flow routing rules may define. For a merchant-initiated transaction with a stored payment method, Gr4vy only considers the following connections.
  • Open-loop connections, which receive the card data from the vault.
  • Closed-loop connections that hold their own token for the card, because the card was stored through that connection.

​
What closed loop means in practice

  • A closed-loop connection only processes merchant-initiated transactions for cards stored through it, using its own token. Other closed-loop connections in the rule are left out.
  • A card stored only through open-loop connections can’t fall back to a closed-loop connection for a merchant-initiated transaction.
  • Customer-initiated transactions, including the first payment in a series, can still fail over between open-loop and closed-loop connections.
  • Network tokens are only used with open-loop connections.
When you add a closed-loop connection to a Flow rule, the dashboard shows a reminder of these limits.

​
Closed-loop connections

The following card connections are closed loop. The following card connections are closed loop by default, and can be switched to open loop. The provider has to allow open-loop processing on your account first. Once it has, turn on Open loop in the connection’s settings in the dashboard. All other card connections that process payments are open loop.