Visa Card Brand rules will be updated to ensure sellers and their payment processors are better able to control first-party fraud. In particular, sellers operating card-on-file business models need to be aware of these pending rule changes and adjust practices accordingly.
CNP Seller Requirements
Sellers with customers who have high volumes of card-on-file transactions in a single day will be required to set base-level daily customer velocity controls. Daily limits should be set to best suit your business, and must not exceed a maximum of 25 transactions per customer. Additional authentication is required for any customer exceeding 25 purchase transactions within one day. How sellers provide additional authentication is at their discretion; however, sellers should be prepared to share authentication details with their acquirer, if requested.
Seller Withdrawal of Services
Following a fraud dispute, sellers will be required to stop continued delivery of goods/services, where it is practical to do so (provided the seller believes their customer is disputing a legitimate transaction). The seller must then set up a process to prevent further disputes from the customer.
Contact Information in Transaction Details
Acquirers will be advised quarterly of CNP sellers with excessive dispute rates where contact information is not provided in the purchase authorization. This detail is mandated, and is provided by issuers within the customer billing statement to support directing customers to sellers first to resolve inquiries.
If you have any questions regarding these rule changes and how they may affect your business, please reach out to your Relationship Manager or Verifi Customer Support.