Visa Rules for Enhanced Risk Performance in 2021

  • Oct 11, 2023
Pine Energy Pte Ltd

Visa has implemented several new laws for ensuring no fraud. The laws are designed to significantly increase your payment performance by reducing illegal conduct and increasing clarity while eliminating payment processing uncertainty.

In this article, we have discussed the visa rules for enhanced risk performance. Keep scrolling to know more.

Decline code management

Established decline codes would be reorganized into four sections on April 16, 2021, and issuers would be expected to have valid decline explanations. Merchants who reattempt to approve payment after obtaining a clear explanation for decline would pay higher costs due to the update.

The four classes are introduced to reduce uncertainty and increase transparency in the payment process. The main reason behind this is when issuers give merchants common reject explanations that are impossible to understand, merchants can retry to submit the same order, resulting in higher prices and frustrated consumers.

Authorization data consistency

Visa’s new regulations are the continuity of authorizing, which will take effect on October 1, 2021. The primary objective of this initiative is to improve the efficiency of issuer-run payment approval. Visa developed standards for ensuring data integrity and reducing the number of resubmitting permission applications with updated data pieces to increase performance rates.

According to the new regulations, if you reapply for a denied permit with modified data areas after October 1, 2021, Visa will charge you a penalty.

One of the critical factors is that, while changing data fields may help certain situations, it is also a waste of resources and money for all parties concerned. Transactions that were the product of fraudulent activities or mislaying would be subject to a non-compliance fine.

Cardholder fraud management

According to Visa’s independent analysis, the shortage of evident decline reason code grouping provides fraudsters with new possibilities. Visa developed recommendations for avoiding and handling fraud after finding a growing trend of credit card holders increasing fraudulent chargebacks for valid transactions.

Merchants find it impossible to monitor first-party theft, which comes at a price to both issuers and merchants.

Fraud prevention tools—protect your online business

The basic fact is that the updated laws don’t necessitate some technical modifications to your part since we’ll do them for you such that your payment process isn’t compromised. Business with a reputable payment processor who offers validated fraud detection tools will help you defend your company from internet scams and reduce decline rates.

Fraud identification implies a holistic strategy to examined results, so a multilevel technique should be your goal. A single tool would not be sufficient to secure the business. You need to check with your payment provider to see if it offers a diverse range of features for acquiring and processing data.