Visa previously announced that it would require merchants and acquirers to identify deferred authorization transactions being processed, but what constitutes a deferred auth, and what does that mean for merchants? Let’s briefly explore. A deferred authorization occurs when a merchant cannot complete an authorization at the time of the transaction with the cardholder due to connectivity, systems issues, or other limitations and then later completes the authorization when it can do so. Specifically, marking these “delayed” transactions is meant to help alleviate the confusion sometimes caused to ..read more

What is a terminal initialization, and what does it do? A terminal initialization is a function that sends information about the PINpad terminal to the host processor and, in return, receives additional parameters and information from that host. The information exchanged may vary by region, processing host, and platform and may further differ by device, industry, or business type. In most cases, the first time a PINpad is connected to a point-of-sale, it must be initialized before it can be used to process transactions. This establishes the relationship in the payment processing environment am ..read more

Card Issuers are always looking at innovations to improve and streamline processes for all stakeholders in the payments landscape (processors, merchants, and consumers). It’s not surprising that they strive to adapt to ever-changing schemes used by fraudsters and cybercriminals and continue to work to reduce fraud and chargebacks. One such endeavor, first presented by Visa, is the Stored Payment Credential mandate, which dictates how merchants should manage and process payments made with card information on file. The Stored Payment Credential Mandate—Overview What constitutes a stored credenti ..read more

Better today than we were yesterday – we call that Operational Excellence! In 2020, in anticipation of the market demand for integrated payments that addressed new device families from our hardware partners and new payment platforms from our processing partners, we aligned our development and quality assurance teams to deliver many new unique processor-and-PINPad-model-specific connectors. We call these productized solutions “Bundles”. The goals of our “Bundled” approach are to: Eliminate the confusion and complexity that can exist when connecting PINPads to processors. Provide a core set of ..read more

The CVM—or card verification method—is simply a way to determine whether the person presenting a card payment is the legitimate cardholder. It all begins with card Issuers. Based on how and where the chip cards are meant to be used—and in accordance with payment network rules—they decide what methods to support, their priority for use, and set them in the card’s formulation. A variety of factors drives the use of different CVMs. These considerations may include methods mutually supported by card and terminal, transaction parameters, or the configuration mode being used in the payment environme ..read more

GETTING (RE)ACQUAINTED… Let us begin with some basics. A token is a card-on-file value that can be used for subsequent transactions such as automatic refunds, monthly subscriptions or completing a partial order. The tokenization process in payment transactions replaces the primary account number (PAN) data with a substitute value. The use of this replacement value—or token —provides “more protection against fraud and account data compromise by removing the PAN from potentially vulnerable parts” of the payment environment. Although tokenization has improved the payments ecosystem’s overall secu ..read more

Originally thought of as just a way to transfer money peer-to-peer—most often used by friends to split the lunch bill without paying fees—the use of QR codes as payment in the Americas has increasingly become a tool for more than just Millennials. During this socially distanced year, it has allowed people to pay for virtual events or even tip service workers during the pandemic. For those less familiar with this concept, some basics. What is a QR Code? QR stands for quick response and is a scannable barcode that can direct a user to pay using a version of the matrix barcode. A QR code traditio ..read more

DEFINING WHAT IT MEANS WHEN WE TALK ABOUT DEVICES NEARING END-OF-LIFE—OR SUNSET—DATES As with other consumer products, payment devices follow a natural product life cycle. PIN Entry Devices (PEDs) are primarily governed by the Payment Card Industry Security Standards Council’s (PCI SSC) regulatory compliance requirements, and their continuity are further subject to market activity and demand, evolving security standards, or innovations in technology that lead to the availability of enhanced next-generation devices. Consequently, manufacturers for these PEDs regularly take steps to “sunset”, th ..read more

Expansion of Card Brand Acceptance: UnionPay The UnionPay card has reached a de facto position among Chinese consumers, but its growth outside of the territory is difficult to ignore. Bolstered by a robust relationship within the banking infrastructure, its capability to collaborate with institutions, partners, and merchants gives it an edge in their quest for continued expansion into the Americas and elsewhere. And this adoption of UPI is making quite a bit of headway, even in this period of recovery—sluggish and inconsistent as it may be. “With about 8 billion cards issued in 58 countries an ..read more

TOUCHLESS PAYMENTS: THE NEW NORM Overview Consequences from the COVID-19 pandemic have been challenging and for some, quite consequential. As the global outbreak continues to evolve, merchants are facing challenges responding to the changing needs and concerns of customers, workers, and communities alike. One of the critical points of focus is reducing the need for customers to interact physically with point-of-purchase terminals. Reducing unnecessary interaction and moving towards touch-free payments is becoming a crucial societal benefit. Enter tap to pay. Merchants leveraging tap to pay, or ..read more