Visa Purchase Return Authorization Mandate


From TSYS and VISA:

Visa is introducing an authorization requirement for return (cardholder refund) transactions. Authorizing a return enables the card issuer to validate the cardholder account, decline potentially fraudulent cards, and minimize chargebacks if the account does not exist or is closed. The return authorization message is intended to improve the return process by enabling cardholders to view a credit/return on their online banking statement in real time, as well as support other issuer services such as text alerts, in order to improve the cardholder experience and minimize return inquiries.

Debit card swiping on card-reader device

Important Dates:

  • April 14, 2019: Issuers will be entitled to initiate chargebacks on return transactions when the merchant fails to obtain an authorization. The issuer holds liability for an authorized Visa return submitted for settlement. The merchant holds liability for an unauthorized Visa return submitted for settlement. Merchants need to ensure their POS will authorize returns.
  • July 1, 2019: Return / Refund transactions will be included in the Visa Zero-Floor Limit and Authorization Misuse Process Integrity Fee Assessment. Unauthorized returns submitted for settlement will be reported as a Visa Zero-Floor Limit non-compliance transaction. Authorized returns not submitted for settlement and are not reversed will be reported as Visa authorization Misuse non-compliance and merchants may notice higher fees on their merchant statement.

Read the full article here to see how this will affect merchants and cardholders alike.

For questions on this topic or other point of sale or payment questions,

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About The Author

Lynn grew up in the point of sale and cash register industry working in the family business – and is now at the helm of Skurla's POS Solutions. She enjoys working with local Alaskan businesses, especially restaurants, grocery stores, and retail operations - helping them control costs and increase revenues through well managed point of sale solutions. Besides running the company, Lynn has also served on the Board of Directors, and as Chairman of the Board, for the Retail Solutions Provider Association. In her spare time, she loves cooking, camping and volunteering with organizations that are passionate about helping children.