Visa Merchant Business News Digest

Visa Analytics Platform Now Available

REGIONS: US, AP, Canada, CEMEA, LAC

27 JUN 2019

Visa Analytics Platform is launching globally with new application packages and applications.

Updated Policy for Subscription Merchants Offering Free Trials or Introductory Promotions

REGIONS: US, AP, Canada, CEMEA, LAC

20 JUN 2019

To enable greater customer recognition, easier cancellation and clearer dispute rights, Visa is updating its rules related to transactions at merchants that offer free trials or introductory offers as part of an ongoing subscription service.

Visa has policies, rules and requirements in place to regulate subscription and “negative option” merchants dating back to 2011, including express, informed consent from customers after required disclosures and a simple cancellation mechanism.

Upon further review of its existing rules, Visa recognizes that free trials or introductory offers that roll into ongoing subscriptions or recurring charges can lead to problems for cardholders and clients, including multimillion-dollar operational cost increases due to high call center volumes, customer complaints, write-offs and card closures / re-issuances. To address these concerns and help provide clarity for all parties, Visa is updating its acceptance, disclosure and cancellation policies effective 18 April 2020.

Additionally, Visa has identified potential solutions to the following pain points around notification, identification and resolution of issues with these transactions:

• Cardholder complaints and confusion. After taking advantage of a free trial • Disputes or introductory offer, cardholders often forget or do not understand that they had agreed to future transactions at the time of the original enrollment or purchase. They also find it difficult to cancel the subscription. This can lead to an increase in customer service contacts for both merchants and issuers.
• Tracking and monitoring difficulties. Currently, no mechanism is available to distinguish transactions involving promotional or introductory offers from any other subscription / recurring transaction. Helping cardholders to better identify these types of transactions is in all parties’ interest in order to reduce confusion and/or frustration, customer service issues and disputes.
• Lack of issuer clarity on available dispute rights. There is confusion regarding dispute rights for issuers to address recurring transactions after an initial free trial / promotional period ends. Some issuers raise disputes as “Fraud,” some as “Cancelled Recurring” and others as “Goods / Services Not Received.”

Subscription Merchant Transaction Policy Updates

The changes are designed to (1) promote an enhanced cardholder experience; (2) enable issuers to clearly identify these transactions; and (3) bring more specificity and clarity to the disputes requirements. With these changes, cardholders will be provided clearer information, enabling them to identify, recognize and take action on subscription transactions, reducing the need for disputes. Specifically, cardholders will benefit from:

• Opportunities to expressly acknowledge the ongoing subscription agreement
• Immediate confirmation of the terms of the agreement
• Proactive notification of future transactions
• Easier cancellation

The changes apply equally to merchants selling either physical or digital goods and services, if they offer free trials or introductory offers that roll into an ongoing subscription / recurring agreement. There are no new indicators or other changes to these transactions that issuers or acquirers need to cater for.

Annex to PCI SPoC Standard Published to Support Magnetic-Stripe Transactions

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

20 JUN 2019

The Payment Card Industry Security Standards Council (PCI SSC) has published an annex to the security standard for protecting PIN-based transactions on commercial off-the-shelf (COTS) devices. The annex defines security requirements for magnetic-stripe transaction acceptance with no PIN in Software-based PIN Entry on COTS (SPoC) solutions. The date for merchants accepting PIN-based transactions via COTS devices to use or transition to a PCI-validated SPoC solution has been extended to 31 December 2019.

In the 26 July 2018 edition of the Visa Business News, Visa announced the publication of the PCI SPoC security standard, which defines global industry security requirements and testing procedures for securing PIN-based transactions on COTS devices.¹ Due to security risks associated with primary account numbers and PINs on unsecure COTS devices, the standard was originally published to explicitly prohibit the acceptance of magnetic-stripe transactions.

Based on industry feedback and the need for continued support of magnetic-stripe transaction acceptance in some markets, PCI has published the Payment Card Industry (PCI) Software-based PIN Entry on COTS Magnetic Stripe Readers Annex, which defines security requirements for accepting magnetic-stripe transactions without PIN in a SPoC solution. The Payment Card Industry (PCI) Software-based PIN Entry on COTS (SPoC) Program Guide has been updated to align with the annex and outlines the elements of SPoC solutions, roles of parties involved in development, solution-testing process and validated solution-listing instructions.

(¹) A COTS device is a mobile device (e.g., smartphone or tablet) designed for mass-market distribution and which is not designed uniquely for payment transaction processing.

Visa SPoC Compliance Deadline

In order to support the transition to PCI-approved SPoC solutions, Visa has extended the deadline that requires all merchants accepting PIN-based transactions via COTS devices to use or transition to a compliant, PCI-validated SPoC solution to 31 December 2019.

The publication of the SPoC standard or the SPoC annex does not change any Visa requirement related to hardware PIN-entry devices. All existing Visa rules and requirements continue to apply, including Visa’s Honor All Cards policy. Visit the PCI SSC website for resources for locating PCI-recognized laboratories and validated SPoC solutions.

Visa Direct OCT Global Implementation Guide Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

30 MAY 2019

Visa has updated the Visa Direct Original Credit Transaction (OCT)—Global Implementation Guide. Clients and their partners that originate or receive Visa Direct original credit transactions (OCTs) should review the updated guide for information on how to enable and support services for a variety of use cases.

Account Funding Transaction Processing Guide Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

30 MAY 2019

Visa has updated the Account Funding Transaction (AFT): Processing Guide. Clients and their partners that originate or receive AFTs should review the updated guide for information on how to best support these transactions.

International Airline Program Reminder for Acquirers

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

23 MAY 2019

Visa’s International Airline Program allows acquirers to partner with qualifying airline merchants and on-board service providers in any jurisdiction. This helps airline merchants consolidate their acquiring relationships and meet the unique needs of airlines for a comprehensive global acquiring service in all countries where they sell their tickets.

Acquirers are reminded that the correct merchant outlet location must be reflected in the merchant contract and in transaction processing, and that they are only permitted to enter into interchange transactions from countries where they are lawfully entitled to acquire transactions.

New Certification Process for Terminal Management System and Electronic Payment Server

REGIONS: US

23 MAY 2019

Visa has introduced a streamlined Level 3 (L3) testing process when using a Terminal Management System or Electronic Payment Server architecture in the U.S. In addition, Visa is reminding clients of the expiry periods for L1, L2 and L3 Letters of Approval for contact and contactless.

Updated Activation Date for EMV® 3-D Secure in the U.S.

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

9 MAY 2019

Visa is updating the U.S. activation date for EMV 3-D Secure (formerly 3DS 2.0) to 31 August 2020. This date defines when fraud liability extends to non-participating issuers.

Visa Secure Rules Now Available in a Separate Program Guide

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

9 MAY 2019

Visa has created a new program guide that contains the rules for participating in Visa Secure using either 3-D Secure (3DS) 1.0.2 or EMV® 3DS.

New Visa Direct Earned Wage Access Use Case for Original Credit Transactions

REGIONS: US

2 MAY 2019

Visa is publishing a new Visa Direct original credit transaction use case for Earned Wage Access (EWA), a service that enables fintechs to allow employees early access to their earned wages.

Faster Small Business Payroll Processing Will Be Available Through Visa Direct

REGIONS: US

2 MAY 2019

Visa will allow payroll service providers in the U.S. to use Visa Direct to facilitate faster small business payroll processing.

New Visa Token Service Token Requestors: Braintree Payment Solutions and IP Solutions International

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

2 MAY 2019

Issuers should prepare to support new credential-on-file and e-commerce Token Requestor IDs for Braintree Payment Solutions and IP Solutions International.

New Mandatory U.S. ADVT / CDET Magnetic-Stripe Data Only Test Case Published

REGIONS: US

18 APR 2019

Visa has updated the U.S. Quick Chip and Minimum Terminal Configuration Acquirer Device Validation Toolkit (ADVT) Version 7 and the Contactless Device Evaluation Toolkit (CDET) Version 2.3 Use Cases on Visa Online and the Visa Technology Partner website in order to include a new mandatory U.S. CDET Magnetic-Stripe Data (MSD) only test case.

Verified by Visa Will Be Rebranded as Visa Secure to Emphasize Online Transaction Security

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

28 Mar 2019

Starting in 2019, the Verified by Visa (VbV) program name will be rebranded to Visa Secure. The Visa Secure badge, combined with descriptive language emphasizing “your online transactions are secure with Visa,” will be the way consumers learn about Visa’s 3-D Secure (3DS) offering.

Existing VbV marks will be replaced with a Visa Secure badge across consumer-facing merchant and issuer channels, while all 3DS authentication screens will simply display the Visa logo.

Visa developed the 3-D Secure standard—currently branded for Visa cardholders as Verified by Visa— to provide merchants and issuers a way to authenticate the cardholder for card-not-present payments. Today, 3DS has become the industry-wide e-commerce authentication standard. 

Merchants are encouraged to use the Visa Secure badge and messaging when implementing the enhanced EMV 3DS technology. Starting 1 October 2019, merchants must use the new badge and messaging whenever EMV 3DS technology is used. Guidelines and communication materials are available to merchants via their normal channels.

Revised Implementation Dates for New Deferred Authorization Indicator

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

28 Mar 2019

Visa has extended the dates for implementing a new indicator for card-present and card-absent transactions when merchants defer transaction authorization. A deferred authorization occurs when a merchant cannot complete an authorization at the time of the transaction with the cardholder due to connectivity, systems issues or other limitations, and then later completes the authorization when it is able to do so.

To give issuers information when a deferred authorization takes place and to help Acquirers & merchants obtain more approvals on deferred authorizations, Visa previously announced that it would require merchants and acquirers to identify deferred authorizations by 12 April 2019. However, in response to feedback and to allow more time for clients to prepare their authorization systems, Visa has postponed the previously announced implementation dates for rules pertaining to deferred authorization indicators to April 2019, October 2019 and April 2021.

Beginning 12 April 2019 as optional, and becoming mandatory for all deferred authorization requests by 16 April 2021, an acquirer or merchant that submits a deferred authorization for a card-present or card-absent transaction must both:

• Include the deferred authorization indicator value of 5206 in the authorization request; and
• Obtain an authorization as follows:
  • For Merchant Category Code (MCC) 4111—Local and Suburban Commuter Passenger Transportation, Including Ferries; MCC 4112—Passenger Railways; and MCC 4131—Bus Lines: Within four days of the transaction date
  • For all other MCCs: Within 24 hours of the transaction date

Effective 18 October 2019, acquirers must be able to support sending this indicator if a merchant includes it, but will not be required to send it in all deferred authorization requests until 16 April 2021. Issuers are required to be able to receive the deferred authorization indicator effective 12 April 2019.

3-D Secure 1.0.2 Product Certification Testing Will Be Discontinued

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

14 Mar 2019

Effective 19 April 2019, Visa will discontinue certification testing of all 3-D Secure 1.0.2 products and licensing of the specifications.

Floor Limits Will Be Updated for Countries in the Europe Region

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

14 Mar 2019

Clients should update their systems to comply with upcoming changes to floor limits in multiple markets in the Europe region, effective 18 October 2019.

Casino Winnings Under MCC 7995 May Be Disbursed to Cardholders Through Visa Direct

REGIONS: US

28 FEB 2019

Select U.S. casinos will be able to use original credit transactions to disburse winnings at face-to-face establishments. Effective 18 October 2019, U.S. issuers will be able to receive domestic original credit transactions (OCTs) associated with select casinos that operate face-to-face establishments under Merchant Category Code (MCC) 7995—Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks. 

While MCC 7995 will be enabled by Visa in October 2019, only select face-to-face U.S. casinos and/or associated technology providers will be permitted to process OCTs and only through debit and eligible prepaid cards. Visa will monitor the program and make any necessary adjustments prior to expanding the program to additional participants.

Updates to PIN Assessors and Requirements for PIN Security Program

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

28 FEB 2019

Visa Approved PIN Security Assessors are migrating to a new assessor program managed by the Payment Card Industry Security Standards Council (PCI SSC). Visa PIN Security Program participants will be required to use a PCI Qualified PIN Assessor (QPA) for all on-site PIN assessments beginning 1 October 2019. 

All on-site PIN assessments beginning on 1 January 2020 and after must validate to version 3 of the PCI PIN security requirements.

Updated PCI SSC Publications Available to Assist With Security Efforts

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

7 FEB 2019

The PCI SSC, which develops and manages payment card security standards to protect payment card data, has updated two previously published information supplements to provide additional security guidance to address compliance, data security challenges and evolving technology. 

Visa encourages all organizations to review the following updated materials and share them with customers, as appropriate: 

Information Supplement: Protecting Telephone-Based Payment Card Data, Version 3.0: Discusses fundamental principles associated with applying Payment Card Industry Data Security Standards (PCI DSS) and best practices for securing telephone-based account data in a telephone environment. 

Best Practices for Maintaining PCI DSS Compliance, Version 2.0: Provides best practices for maintaining compliance with PCI DSS after an organization has already undergone an initial PCI DSS assessment and successfully achieved compliance.

PCI SSC Publishes New Software Security Framework

REGIONS: US, AP, Canada, CEMEA, LAC, Europe

17 JAN 2019

To facilitate secure, reliable and accurate payments, the systems and software used as part of the transaction flow must be designed, developed and maintained in a manner that protects the integrity of payment transactions and the confidentiality of all sensitive data that they store, process or transmit. 

The Payment Card Industry Security Standards Council (PCI SSC) has published the new Software Security Framework in order to provide software vendors with updated security requirements and assessment procedures for payment software. 

In this initial publication, the Software Security Framework includes two standards:

• The Secure Software Standard, intended for software vendors that develop payment software that is sold, distributed or licensed to third parties, outlines security requirements and assessment procedures to help ensure payment software adequately protects the integrity and confidentiality of payment transactions and data. 
• The Secure Software Lifecycle (Secure SLC) Standard outlines security requirements and assessment procedures for software vendors to validate how they properly manage the security of payment software throughout the software lifecycle. 

Both standards are designed for use as part of the PCI Software Security Framework and are intended for software vendors that develop software for the payments industry. Software vendors wishing to validate payment software under the PCI Software Security Framework should use the PCI Secure Software Standard. In addition, software vendors may opt to validate their Secure SLC practices for that payment software using the PCI Secure SLC Standard. 

Transition from the Payment Application Data Security Standard  

While the PCI Software Security Standards include elements of the Payment Application Data Security Standard (PA-DSS), the standards represent a new approach for securely designing and developing both existing and future payment applications. The overarching PCI Software Security Framework is designed to support a broader array of payment software types, technologies and development methodologies currently in use and also to support future technologies and use cases.  

Visa clients, as well as their agents and merchants, must use only secure, validated payment applications that do not retain prohibited data elements. While the PA-DSS and Software Security Framework is intended for payment software that is sold, distributed or licensed to third parties, payment software that is developed in-house or customized for a single customer can also benefit when the requirements are applied as a best practice.

Upcoming EMV Contactless Acceptance Requirements

REGIONS: U.S.
20 DEC 2018

Effective 13 April 2019, all terminals accepting contactless payments in the U.S. must actively support EMV contactless functionality, and the legacy magnetic stripe data contactless technology should be upgraded.

New U.S. Debit Test Card Versions Must Be Used for U.S. ADVT and CDET Testing

REGIONS: U.S.
18 DEC 2018

Effective 14 December 2018, U.S. Debit Test Card #1 (version 2.0), #2 (version 2.0) and #3 (version 3.0) must be used for U.S. Acquirer Device Validation Toolkit (ADVT) and U.S. Contactless Device Evaluation Toolkit (CDET) testing.

Merchant Security Reporting for Acquirers Due 31 January 2019

REGIONS: US, Canada
6 DEC 2018

Acquirers must submit merchant validation reports to Visa by 31 January 2019. Information on acquirers' compliance status and data security efforts enables Visa to understand how security measures are being adopted across the industry. As a reminder, acquirers must submit their Acquirer Merchant Reporting Template by 31 January 2019.

Visa 3DS 2.0 Performance Program Rules

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
25 OCT 2018

Visa is updating its 3-D Secure (3DS) program to support the updated EMV 3-D Secure specification, also referred to by the industry as 3DS 2.0. As part of the program update, issuer and merchant performance requirements are being established to ensure the Visa 3DS 2.0 program is deployed in a manner that will help to reduce fraud, enable effective authentication decision-making, and allow for a seamless user experience.

Cash Discounting and Discount Offers Explained

REGIONS: US
18 OCT 2018

Because cash discount or discount offer programs have become increasingly popular at merchants, Visa is reminding U.S. acquirers, merchants, processors and agents that discount offer programs should be evaluated to ensure compliance with the Visa Rules.

Reminder and Clarification on New Merchant Category Code for Marketplaces

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
11 OCT 2018

Acquirers and issuers are reminded that Visa is introducing a new merchant category code (MCC) for marketplaces. Visa is also clarifying applicable usage of the new MCC to sell goods / services within a single line of business.

Visa Rules Will Be Updated to Streamline Cardholder and Merchant Interaction at the Point of Sale

REGIONS: US
27 SEP 2018

Recently announced acceptance policy changes, evolving and innovative new products, and changing risk parameters have created an opportunity to streamline Visa's requirements for merchants to identify and verify cardholders at the point of interaction in face-to-face environments. These updates will remove outdated requirements and practices, reduce friction and clarify a merchant's responsibility for verifying cardholders at the point of interaction.

Original Credit Transaction Terminology in Visa Direct Rules Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
20 SEP 2018

Visa Direct-related rules and terminology have been updated to bring consistency and alignment with the nomenclature changes introduced in December 2017 in the Visa Direct Original Credit Transaction Global Implementation Guide.

Increase in Payment Facilitator Annual Transaction Volume Limit for India

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
20 SEP 2018

The maximum annual transaction volume limit for payment facilitator / acquirer direct merchant agreement will be increased from USD 100,000 to USD 1 million in India.

Visa Threat Intelligence Historical Library Available Through December 2018 at No Charge

REGIONS: US
13 SEP 2018

To help protect payment data from cyberattacks, Visa Threat Intelligence historical library will be available to qualified clients through the end of 2018.

Verified by Visa Endpoints Must Support Failover Processing

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
6 SEP 2018

Visa will be updating all Verified by Visa server environments to better support redundancy.

PCI PIN Security Requirements Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
6 SEP 2018

The Payment Card Industry Security Standards Council (PCI SSC) has published version 3.0 of the PCI PIN security requirements.

PCI SSC Publishes New Guidance for Small Merchants

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
6 SEP 2018

Visa encourages clients and small merchants to review the simplified guidance documents on protecting payment card data published by the Payment Card Industry Security Standards Council (PCI SSC).

3DS 2.0 Service for Processing Secure E-commerce Transactions Available and Updated Activation Dates

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
30 AUG 2018

Visa 3-D Secure (3DS) 2.0 service is now available for clients and merchants to enhance the security of e-commerce transactions. In addition, updated regional activation dates that define when fraud liability extends to issuers that do not participate in 3DS 2.0 are now available.

U.S. EMV Acceptance: Streamlined Contactless Level 3 Chip Certifications

REGIONS: US
30 AUG 2018

Visa has streamlined contactless Level 3 chip certifications. Once a terminal device is set up to process online quick Visa Smart Debit / Credit (qVSDC) contactless transactions and has been certified for contact chip, then only limited streamlined testing will be required for qVSDC contactless.

Visa Token Service Will Expand for Adyen

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
16 AUG 2018

Visa will introduce a new credential-on-file use case with Adyen to accelerate the deployment of Visa tokens to e-commerce merchants.

Visa Account Funding Transaction Processing Guide Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
9 AUG 2018

Visa has updated the Visa Account Funding Transaction (AFT) Processing Guide. Clients and their partners that originate or receive AFTs should review the updated guide for information on how to best support these transactions.

Visa Token Service Will Expand for Use Case with Cherri Tech, Inc.

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
9 AUG 2018

Visa will introduce a new merchant credential-on-file use case with payment service provider Cherri Tech, Inc. to accelerate the deployment of Visa tokens to e-commerce merchants.

Test Encryption Keys in VCMS Must Be Provided by Visa

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
9 AUG 2018

Effective April 2019, clients and processors must use Visa-provided test encryption keys for testing in the VisaNet Certification Management Service (VCMS). Clients and processors must upgrade their VisaNet Test System-VisaNet Integrated Payment, host security modules and test host systems to support the Visa-provided test encryption keys.

Visa Direct OCT Global Implementation Guide Updated

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
2 AUG 2018

Visa has updated the Visa Direct Original Credit Transaction (OCT)-Global Implementation Guide. Clients and their partners that originate or receive Visa Direct original credit transactions (OCTs) should review the updated guide for information on how to enable and support services such as money transfers, funds disbursements, prepaid loads and credit card bill payments.

Ensuring Network Integrity—Reminder to Focus on Data Quality

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
26 JUL 2018

Visa is reminding all clients to review their system setup and transaction coding to ensure compliance with Visa rules.

White Paper on Digital Transformation of Small-and-Medium-Sized Businesses Published

REGIONS: US
26 JUL 2018

Visa has published a white paper, flyer and brochure that help address how small- and medium-sized businesses (SMBs) can increase sales and improve the customer experience through technology and digital commerce. These materials, which include research findings, real-life testimonials and a practical how-to guide, are available for Visa’s partners to distribute to SMBs.

Europe Contactless Magnetic-Stripe Data Transactions Will Be Blocked By V.I.P. System

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
26 JUL 2018

For all Europe region-issued card payment devices, the VisaNet Integrated Payment (V.I.P.) System will block all contactless magnetic-stripe data transactions. This will affect all Europe region issuers, acquirers and merchants worldwide.

PCI Software-based PIN Entry on COTS Device Standard and Program Published

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
26 JUL 2018

The Payment Card Industry Security Standards Council (PCI SSC) has published a standard for protecting PIN-based transactions on commercial off-the-shelf (COTS) devices. Merchants accepting PIN-based transactions via COTS devices must use or transition to a PCI-validated software-based PIN entry on COTS solution by 31 July 2019.

Support for Key Exchange in Key Block Format

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
19 JUL 2018

All organizations that exchange keys with Visa should plan to transition from variant format encryption to key block format encryption. The ability to perform key exchanges with Visa in variant format will not be supported by Visa after June 2021.

Visa Token Service Will Expand for CyberSource

REGIONS: US, AP, Canada, CEMEA, LAC, Europe
19 JUL 2018

Visa will introduce a new credential-on-file use case with CyberSource to accelerate the deployment of Visa tokens to e-commerce merchants.