Tax-free shopping with secure card capture

Learn about tax-free shopping and how to support it.

Tax-free Shopping (TFS) allows international travelers to claim back the sales tax or Value-Added Tax (VAT) on their purchases from a Tax-Free Shopping provider (TFS provider) such as Global Blue. A TFS provider is an organization that refunds the shopper and takes care of the paperwork with the authorities. We can share the shopper's encrypted card number with the TFS provider so that it is easier for the provider to refund the shopper on their card. This is referred to as secure card capture.

Supporting TFS drives sales from international shoppers because of its convenience, and can be a great source of data about international shoppers. To offer TFS with secure card capture to your shoppers, your TFS provider needs to integrate with your POS app.

Requirements

Before you begin, take into account the following requirements, limitations, and preparations.

Requirement	Description
Integration type	A Terminal API integration with payment terminals, or a Mobile solution. You do not need Customer Area roles or API credentials other than the standard roles and credentials for your integration or solution.
Webhooks	You need to set up Send card number to <TFS provider> webhooks. See the instructions on this page.
Limitations	The following limitations apply: Only available if you are located in a country/region where a Terminal API integration is supported or a country/region where Mobile solutions are supported, and only if the country/region allows VAT refunds. Only available with Global Blue as TFS provider. Check their overview of supported countries. Not supported on standalone terminals.
Setup steps	Before you begin, you need to set up tax-free shopping.

How it works

The role of Adyen in the tax-free flow is limited. Secure card capture enables us to send a notification with the shopper's encrypted card details to the TFS provider.

For an overview of the flow, select the tab for your integration or solution.

Check if the purchase is eligible for TFS. You can do this either:
- From the terminal: you send a card acquisition request to get the issuer country code and the BIN.
- From your POS app: this flow does not involve Adyen and you need to set it up with your TFS provider.
Ask the shopper's consent for secure card capture (to share their encrypted card number with your TFS provider). You can do this either in the POS app user interface or on the payment terminal. There are two flows to ask for consent on the terminal:
- Automatic consent flow: after you have enabled this flow with Adyen, you only need to make a payment. This automatically shows the consent screen and shares the encrypted card number with the TFS provider if consent is given.
- Custom consent flow: you send an input request to ask the shopper for their consent and need to implement logic to decide, based on the input response, whether your payment request should trigger secure card capture.
If Global Blue is your TFS provider, it is recommended to ask for consent in the POS app user interface.
You make a payment with taxfree.indicator set to true to indicate that the shopper has given consent for secure card capture. We send a notification to the TFS provider with the shopper's encrypted card number.

If the shopper has not given consent, you set taxfree.indicator to false so that no secure card capture happens. In the automatic flow, we automatically change the flag to false. The shopper can still claim the refund with the TFS provider.
After the shopper completes the payment, you give the shopper the tax-free form issued by the POS app, and a receipt.

With the tax-free form and the receipt, the shopper can claim the VAT refund from the TFS provider. As part of this process, the shopper has to take the tax-free form to the customs desk at the airport or border, to get export validation. Customs will place a customs stamp on the form, or use an electronic system for validation. The shopper then needs to send or hand in the (electronically) validated form to the TFS provider.

Set up tax-free shopping

Before you begin offering tax-free shopping to your shoppers, you need to set up the feature.

Select the tab for your integration or solution.

Contact a TFS provider to set up a tax-free process.
To set up your POS app for TFS support, contact the provider of your POS system.
If you want to automatically show a default consent input screen before showing the payment screen, ask your Adyen account manager or the Support Team to enable the automatic consent flow.

If you want to use a custom input screen, the automatic consent flow must be disabled.
Enable receiving the issuer country:
1. In your Customer Area, go to Developers > Additional data.
2. Select Issuer country, Variant, Funding source, and Funding source subtype.
Configure a Send card number to webhook to send notifications to your TFS provider.

Set up notifications to your TFS provider

Configure a Send card number to <TFS provider> webhook. If the shopper agrees to share their card details, we send the following data fields to your TFS provider:

The PSP reference of the transaction.
The shopper's encrypted card number.
The BIN of the shopper's card.

If your TFS provider is Global Blue, use https://www.adyen.com as the URL for Server configuration for the "Send card number to Global Blue" webhook.

We recommend adding a meaningful message to the Description that identifies it as part of the tax-free shopping flow.

Whether we send this notification is determined by the taxfree.indicator flag in the payment request. If the notification is sent, you see this on the transaction in your Customer Area. The POS tile of the transaction includes:

Tax Free Indicator: true
Tax Free Identifier: the ID that the TFS provider returned to acknowledge the card details.

This notification is needed for testing and when you go live. Note that the shopper can claim the tax refund regardless of whether we notified the TFS provider of the shopper's encrypted card number.

Handle the tax-free flow

Select the tab for your integration or solution.

In a Terminal API integration using payment terminals, the flow can consist of three steps:

Optionally acquire the card details to gather data that enable you to check if the transaction is eligible for TFS. The POS app should handle the eligibility check either locally or through the TFS provider, and should inform your store staff of the result.
Optionally use a custom input request instead of the automatic consent flow to ask the shopper's consent to sharing their encrypted card details with the TFS provider.
Make a payment request with the taxfree.indicator flag set to true. The shopper's encrypted card details will be shared with the TFS provider.

1. Optional: Acquire card details

To check whether the shopper is eligible for a tax refund and to determine the eligible tax-free service, you can check the shopper's passport and payment card, or you make a card acquisition:

Make a CardAcquisitionRequest in which you specify the TotalAmount.

 {
    "SaleToPOIRequest": {
        "MessageHeader": {
            "ProtocolVersion": "3.0",
            "MessageClass": "Service",
            "MessageCategory": "CardAcquisition",
            "MessageType": "Request",
            "SaleID": "POSSystemID12345",
            "ServiceID": "0207111104",
            "POIID": "MX925-284691408"
        },
        "CardAcquisitionRequest": {
            "SaleData": {
                "SaleTransactionID": {
                    "TimeStamp": "2024-06-10T14:59:09.000Z",
                    "TransactionID": "933"
                }
             },
            "CardAcquisitionTransaction": {
                "TotalAmount":176.99
            }
        }
    }
}

When you receive the response, get the following details.

POIData.POITransactionID.TimeStamp and POIData.POITransactionID.TransactionID: you need these details later in your payment request.
CardData.CardCountryCode: The issuer country code, for example 528. Also included in the AdditionalResponse.
From the AdditionalResponse (you receive either a string of key-value pairs or a Base64 string that you need to decode to get a JSON object):
- cardIssuerCountryId: the issuer country code, for example 528. Also included in CardData.CardCountryCode.
- cardBin: the BIN of the shopper's card, for example 541333.
- paymentMethod
- fundingSource

Card acquisition response

 {
    "SaleToPOIResponse": {
        "CardAcquisitionResponse": {
            "POIData": {
                "POITransactionID": {
                    "TimeStampFor use in the CardAcquisitionReference of the payment request": "2024-06-10T14:59:08.000Z",
                    "TransactionIDFor use in the CardAcquisitionReference of the payment request": "jM6S001558097948000"
                }
            },
            "SaleData": {
                "SaleTransactionID": {
                    "TimeStamp": "2024-06-10T14:59:09.000Z",
                    "TransactionID": "933"
                }
            },
            "PaymentInstrumentData": {
                "CardData": {
                    "CardCountryCodeIssuer country code": "528",
                    "MaskedPan": "541333*****9999",
                    "PaymentBrand": "mc",
                    "SensitiveCardData": {
                        "ExpiryDate": "0228"
                },
                "PaymentInstrumentType": "Card"
            },
            "Response": {
                "AdditionalResponseContains the BIN and the issuer country code": "...cardBin=541333...cardIssuerCountryId=528...",
                "Result": "Success"
            }
        },
        "MessageHeader": {...}
    }
}

Pass the cardIssuerCountryID, expiryDate, paymentMethod, fundingSource, and the cardBin to your POS app for the eligibility check.

The POS app either handles the eligibility check locally or through the TFS provider, and informs your store staff of the result.

2. Optional: Use a custom input request to ask for consent

If the purchase qualifies for TFS, you must ask the shopper for their consent to sharing their encrypted card number with your TFS provider. You can do this by showing a screen either on the terminal or in the user interface of your POS app. When using the terminal, you can enable the automatic default consent screen, or send a custom input request.

To ask for consent with a custom input request or through the POS app UI, the automatic consent flow must be disabled for your account.

To ask consent with a custom input request on the terminal:

Make a Confirmation input request with:

OutputContent.OutputText: an array of four Text fields containing:
- A title. For example: Tax-free shopping
- An explanation and a question. This text can be long and is scrollable. For example:
  You are eligible for tax-free shopping. Would you like the tax-free provider to refund you on your card?
- A "No" button on the left of the display.
- A "Yes" button on the right of the display.
InputData.MaxInputTime: (Integer) Time-out in seconds. This is the time that the shopper gets to answer the question.

Input request asking for consent

 {
    "SaleToPOIRequest":{
        "MessageHeader":{
            "ProtocolVersion":"3.0",
            "MessageClass":"Device",
            "MessageCategory":"Input",
            "MessageType":"Request",
            "ServiceID":"0207111104",
            "SaleID":"POSSystemID12345",
            "POIID":"V400m-324688179"
        },
        "InputRequest":{
            "DisplayOutput":{
                "Device":"CustomerDisplay",
                "InfoQualify":"Display",
                "OutputContent":{
                    "OutputFormat":"Text",
                    "PredefinedContent":{
                        "ReferenceID":"GetConfirmation"
                    },
                    "OutputText":[
                        {
                            "Text":"Tax-free shopping"
                        },
                        {
                            "Text":"You are eligible for tax-free shopping. Would you like the tax-free provider to refund you on your card?"
                        },
                        {
                            "Text":"No"
                        },
                        {
                            "Text":"Yes"
                        }
                    ]
                }
            },
            "InputData":{
                "Device":"CustomerInput",
                "InfoQualify":"Input",
                "InputCommand":"GetConfirmation",
                "MaxInputTime":60
            }
        }
    }
}

When you receive the input response, check the InputResult for the shopper's answer:

Input.ConfirmedFlag: true indicates the shopper gives their consent.
Input.ConfirmedFlag: false indicates the shopper doesn't give their consent.

Response when the shopper gives their consent

 {
  "SaleToPOIResponse": {
    "InputResponse": {
      "InputResult": {
        "Device": "CustomerInput",
        "InfoQualify": "Input",
        "Response": {
          "Result": "Success"
        },
        "Input": {
          "ConfirmedFlag": true,
          "InputCommand": "GetConfirmation"
        }
      },
      "OutputResult": {
        "Device": "CustomerDisplay",
        "InfoQualify": "Display",
        "Response": {
          "Result": "Success"
        }
      }
    },
    "MessageHeader": {...}
  }
}

Pass the shopper's answer to the POS app.

3. Make a payment

Use a taxfree.indicator flag in the payment request to indicate if the shopper's encrypted card details can be shared with the TFS provider. Also include a reference to the card acquisition if you have acquired the card details in Step 1.

Make a PaymentRequest with:

Parameter	Description
`PaymentData.CardAcquisitionReference`	Data from the card acquisition: `TimeStamp`: the time stamp returned in the `POIData.POITransactionID` of the card acquisition response. `TransactionID`: the transaction ID returned in the `POIData.POITransactionID` of the card acquisition response.
`SaleData.SaleToAcquirerData`	The `taxfree.indicator` flag set to true. If the purchase does not qualify for TFS or the shopper did not give their consent, you omit `taxfree.indicator` or set it to false.

Pass the SaleToAcquirerData in one of the following formats:

Option 1: a JSON object converted to a Base64-encoded string.


Copy code
{
    "additionalData": {
        "taxfree.indicator": "true"
    }
}

After encoding, pass this in your request:


Copy code
"SaleToAcquirerData": "ewogICAgImFkZGl0aW9uYWxEYXRhIjogewogICAgICAgICJ0YXhmcmVlLmluZGljYXRvciI6IHRydWUKICAgIH0KfQ=="

Option 2: a form-encoded key-value pair:


Copy code
"SaleToAcquirerData": "taxfree.indicator=true"

The example below shows how to make a payment request with taxfree.indicator set to true.

 {
    "SaleToPOIRequest":{
        "MessageHeader":{
            "ProtocolVersion":"3.0",
            "MessageClass":"Service",
            "MessageCategory":"Payment",
            "MessageType":"Request",
            "SaleID":"POSSystemID12345",
            "ServiceID":"0207111104",
            "POIID":"MX925-284691408"
        },
        "PaymentRequest":{
            "SaleData":{
                "SaleToAcquirerData":"taxfree.indicator=true",
                "SaleTransactionID":{
                    "TransactionID":"27908",
                    "TimeStamp":"2024-06-10T10:11:04+00:00"
                }
            },
            "PaymentTransaction":{
                "AmountsReq":{
                    "Currency":"EUR",
                    "RequestedAmount":176.99
                }
            },
            "PaymentData":{
                "CardAcquisitionReference":{
                    "TransactionIDThe POITransactionID.TransactionID of the card acquisition": "jM6S001558097948000",
                    "TimeStampThe POITransactionID.TimeStamp of the card acquisition": "2024-06-10T12:59:08.000Z"
                }
            }
        }
    }
}

When asking for consent automatically is enabled, the terminal asks the shopper for their consent for secure card capture.

Terminal confirmation screen

The shopper provides their answer and completes the transaction.

When the automatic consent flow is enabled, in the payment response note the following in the AdditionalResponse:

If the shopper gave consent, the taxfree.indicator flag remains set to true.
If the shopper did not give consent, the taxfree.indicator flag is set to false.

Payment response

 {
    "SaleToPOIResponse": {
        "MessageHeader": {...},
        "PaymentResponse": {
            "POIData": {
                "POIReconciliationID": "1000",
                "POITransactionID": {
                    "TimeStamp": "2024-06-10T08:13:47.000Z",
                    "TransactionID": "jM6S001558097948000.GH4R4RBFJGXXGN82"
                }
            },
            "PaymentReceipt": [...],
            "PaymentResult": {...},
            "Response": {
                "AdditionalResponse": "...taxfree.indicator=true...",
                "Result": "Success"
            },
            "SaleData": {...}
        }
    }
}

After the transaction, your staff provides the shopper with the tax-free form issued by the POS app, and a receipt.

Test the tax-free flow

In most cases, your TFS provider organizes an end-to-end test between themselves, Adyen, you, and your POS system provider.

In general, to test the happy flow, you need to use a card with a BIN that is eligible for tax refunds. Otherwise, the TFS provider returns a message that a tax refund is not possible.

Make sure that you configured Send card number to <TFS provider> notifications for your test account.
Discuss with your TFS provider which card numbers (PAN) on your test card you are allowed to use for tax refund testing. (The PAN includes the BIN.)
Optional in a Terminal API integration using payment terminals: during the card acquisition step, use one of the allowed test card PANs and the associated currency.
The POS app should now show that the card is eligible for a tax refund. This depends on how the eligibility check is set up with your TFS provider and POS system.
Send a payment request with taxfree.indicator set to true, and complete the payment on the terminal. Find the PSP reference of the Transaction in the transactionID.
Issue a tax-free form from your POS app based on the specifications provided by the TFS provider.
In your Customer Area, look up the transaction by PSP reference and check that the POS tile contains an ID in the Tax Free Identifier field. If this field is empty, contact your TFS provider to discover what went wrong.