Description

Visa has announced some significant changes aimed at improving the handling of card transactions. These changes are intended to enhance the current cardholder experience by allowing cardholders to view a credit/return on their online banking statement in real-time, receive text alerts and minimize return inquiries as well as simplify the chargeback process which will improve the customer experience for both you and cardholders. 

Another benefit is the added protection from the threat of force-post fraud that can create excessive chargeback risk and unnecessary operational expenses. Some customers may require a simple update to their terminal to receive these added features. We are taking the necessary steps to accommodate these changes to ensure all customers can take advantage of these beneficial programs. You do not need to take any action at this time. If your account requires an update, we will reach out to you in the coming months.

Resolution

Visa Credit Transactions

Visa is introducing an authorization requirement for return transactions (also known as a cardholder refund). Authorizing a return enables the card issuer to validate the cardholder account, decline potentially fraudulent cards, and minimize chargebacks if the account does not exist or is closed. The return authorization message is intended to improve the return process, reduce return inquiries and improve the customer experience for cardholders by enabling them to view a credit/return on their online banking account/statement in real-time and receive other services from the card issuer such as text alerts.

All POS devices/systems will need to be updated to support authorizations for Visa Credits. Customers using our Gateway or using a terminal with auto-download enabled will update automatically. 

Customers with terminals that do not update automatically or who are using a third-party solution may require an update. If your terminal requires an update, we will be contacting you in the coming months to complete this process.

Customers who do not update their terminals to support this mandate by October 19, 2019, could be assessed non-compliance fees. Customers may also experience an increase in non-defensible chargebacks for no authorization.

Visa Forced Post Transactions

Visa introduced a new set of requirements for forced post transactions in January. Forced post transactions are defined as sale or credit transactions settled with a manually entered authorization code. Visa mandate 0030120 requires acquirers to implement a compliance process. The mandate indicates we must restrict the ability to process forced post transactions without prior approval clearance, create a review process for these requests and monitor this program to ensure compliance. To plan for this change, we are reviewing all merchant accounts that process forced post transactions during the normal course of business to determine pre-approval.

If you have any questions, please contact us at the number on the front of your statement. As always, we are here to help guide you through these changes and offer any necessary assistance in determining a course of action or administering the updates.

If you have questions or require additional information, please contact us here and we will be in touch with you shortly.