Is Visa Charging Me For Lack of Integrity?

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Is Visa Charging Me For Lack of Integrity?

Is Visa Charging Me For Lack of Integrity?           

Honor, truth, veracity – integrity embodies all of these, but now Integrity also means an extra $0.10 for Visa transactions on debit or prepaid cards that don’t meet certain Custom Payment Service (CPS) qualification criteria.

 

How to Avoid the Fee

There are a few ways to avoid the fee.  For CNP merchants, avoiding them could be a bit trickier than for POS merchants, but here are the basic guidelines:

  • Always authorize and settle for the same amount
  • Always obtain an exact AVS match – in some cases, requiring an exact match can erode overall conversion and lifetime value to the point that it’s not worth saving the $0.10 fee, so this would need to be evaluated on a merchant by merchant basis, or perhaps by affiliate or other marketing channel
  • Ensure your processor is submitting the correct indicators and MCC with your transactions

 

Again, it’s important to remember that this fee only applies to debit or prepaid cards, regulated or non-regulated.  Each merchant’s file will be different and best practices may need to be tweaked by merchant, transactional division, source of orders, product line, BIN, or more.  For questions on how to best implement this for your specific business, contact us.

By | 2013-11-26T15:21:21+00:00 November 26th, 2013|Categories: Blog Post|Tags: , , , |0 Comments

About the Author:

Melanie Stout began her career at Synapse Group nearly 20 years ago, blazing the trail for continuous service magazine subscriptions. After Synapse Group, she successfully built and launched the first direct-to-consumer recurring revenue stream at WebMD.com. Prior to PLC, Melanie was Vice President of Marketing and Communications for a SaaS-based healthcare IT company. She has combined her knowledge of the subscription economy with B2C, B2B, and B2P marketing, to help companies of all sizes increase conversions, improve retention, and reduce operating costs. Melanie has participated as a panelist at the CNP Expo and as a moderator at the Subscription Insider event, Mastering Payment Processing for Recurring Revenue.