Revenue Optimization 1: Authorization rates, fraud and some things you should know about risk management
This month, Visa is rolling out a number of scheme updates for point of sale services, plus clarifying interchange status for EEA transactions.
Currently, for certain transaction types a referral response code can be sent by an issuer to instruct the merchant or its acquirer to contact the issuer for further instructions before completing a point of sale transaction.
With the aim of speeding authorization processing times and improving cardholder/merchant experience, as of April 15, 2016, merchants will no longer receive ‘call issuer’ responses for Visa POS payments.
Instead, transactions that would trigger a merchant to call the referral number will now be either declined or approved based on predefined issuer settings.
This follows from Visa’s previous announcement to end its International Automated Referral Service (IARS).
As of December 31, 2019 all Visa terminals deployed within the Visa Europe region must be able to accept contactless payments.
Terminals deployed prior to December 31 2015 must be updated by this date.
This follows from a previous communication by Visa Europe in 2015 that mandated contactless functionality on all new point of sale installations (all face-to-face, semi-attended, and unattended Visa terminals) after December 31, 2015.
Mobile acceptance terminals deployed in non-fixed merchant locations and automated fuel dispensers (AFDs) are excluded from the mandate.
Furthermore, these changes do not apply to the Czech Republic, Hungary, Poland, and Slovakia, as these markets have previously introduced contactless acceptance mandates.
Transactions between EEA countries and these territories will be considered as French domestic transactions or intra-Visa Europe EEA transactions as applicable and are part of the IFR (Interchange Fee Regulation) that came into effect on December 9 2015.
The French EU Outermost territories include Guadeloupe, French Guiana, Martinique, Mayotte, Réunion and Saint-Martin.
For more information about any of the above, please contact your Account Manager or Adyen support.
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