The Clearsale Blog

Visa’s New Stored Credentials Program: What Online Merchants Must Know

Visa’s New Stored Credentials Program: What Online Merchants Must Know

The appeal of shopping online is its ease: Customers can point, click and buy from the comfort of their homes. And as e-commerce grows in popularity, merchants want ways to make online transactions even easier. Storing credentials, which allows for faster checkouts and a seamless, more secure purchasing process, has helped do just that.

Stored credentials are simply data — like credit card numbers — that a merchant uses to facilitate the processing of two kinds of future transactions:

  • Cardholder-initiated transactions. The cardholder initiates a transaction, either online or in a brick-and-mortar store and requests that payment information be stored to simplify future purchases.
  • Merchant-initiated transactions. For subscription-based services, recurring billing agreements and other similar transactions, the cardholder gives consent for the merchant to store payment credentials for future use.

As e-commerce sites increasingly use stored credentials, processing networks have developed new ways to improve transactional security and customer convenience. In October 2016, Visa updated its requirements that covered transactions under the new stored credential transaction category. And on October14, 2017, Visa implemented new requirements for how merchants store and process these cardholder credentials.

5 New Credential Storage Requirements

Merchants that opt to store customer credentials to process either transaction type must:

  1. Obtain cardholder consent for stored credentials that were initiated after October 14, 2017.
  2. Communicate to customers how credentials data will be used.
  3. Update policies and workflows to include refund policies, recurring charges, surcharges and contact information for customers.
  4. Notify cardholders of changes to the terms of use.
  5. Use the appropriate data values in either the payment transaction or the account verification authorization to identify both the initial storage and usage of stored payment credentials.

To comply with the new standards, merchants may need to revise their e-commerce checkout pages and terms and conditions to more accurately explain their process for storing the customer’s credentials. They should also add a box on checkout pages to let customers consent to these terms and ensure they provide contact information for customers who have questions about data storage and its policies.

How the Stored Credentials Program Affects Merchants

Because each stored credential transaction is now recognized distinctly, it receives different treatment throughout the authorization approval process and can offer merchants benefits like:

  • An increase in authorized transactions and completed sales
  • A reduction in chargebacks and customer friction at checkout
  • A greater visibility of transaction risk levels for issuers

For merchants meeting the requirements of the Visa Stored Credentials Program, it not only helps improve transaction processing for merchants and customers, but it’s also an important step toward minimizing fraud and chargebacks.

Selecting the right fraud protection solution for your e-commerce business is another critical step in protecting your business. Contact a ClearSale fraud analyst today to learn how implementing our multilayered approach can help you minimize friendly fraud while increasing approval rates and customer satisfaction.

Is a Fraud Managed Services Solution Right for Your Business?

You may also like

E-Commerce Payment Processing Options for Enterprise Merchants

E-Commerce Payment Processing Options for Enterprise Merchants

Enterprise-level e-commerce merchants need to be able to accept as many legitimate online payment transactions as possible, mitigate risk, while delivering a secure and robust omnichannel checkout..

How International Payment Processing Is Different

How International Payment Processing Is Different

When a customer places an online order, virtually no time elapses between them clicking Buy Now and receiving their order confirmation. But what seems like an instantaneous process is actually..

[Trend Alert] Gen Z Shoppers Want Alternate Payment Methods

[Trend Alert] Gen Z Shoppers Want Alternate Payment Methods

If your online store targets Generation Z – today’s young consumers, born between 1995 and 2015 – you need to be catering to a tech-savvy, digital native audience.

What Is the Visa Chargeback Monitoring Program?

What Is the Visa Chargeback Monitoring Program?

No e-commerce merchant wants to find themselves on the receiving end of chargebacks. They’re expensive, they’re time-consuming, and they can damage online reputations. Now, Visa has thrown a new..

Understanding Visa Chargeback Time Limits

Understanding Visa Chargeback Time Limits

Visa introduced the VCR initiative in 2018 to streamline and speed up the chargeback resolution process. As a result, the timeframe for resolving disputes dropped from 100 days down to 31...

How to Accept Cryptocurrency in Your E-commerce Store in 2019

How to Accept Cryptocurrency in Your E-commerce Store in 2019

Cryptocurrency is the rave of the moment. Except you have been conducting business in ancient bunkers in the past few years, you would have heard of Bitcoin (BTC), Ethereum (ETH), LiteCoin (LTC)...

Alternative Online Payment Methods We’ll See More of in 2019

Alternative Online Payment Methods We’ll See More of in 2019

One of the keys to getting e-commerce right is ensuring that the consumer’s shopping experience is convenient and effortless. This becomes especially important when it comes to payment. There’s no..

Has Visa Claims Resolution Changed the Chargeback Management Process?

Has Visa Claims Resolution Changed the Chargeback Management Process?

When the Visa Claims Resolution (VCR) initiative went into effect in April 2018, it was touted as a complete transformation to Visa’s chargeback dispute process – improving the way Visa uses..

Contextual Commerce: The New Future for e-Commerce Payments?

Contextual Commerce: The New Future for e-Commerce Payments?

Contextual commerce is emerging as the latest influence over future consumer behavior and e-commerce payments. And because it has the potential to transform shopping online, merchants should..

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog