Delay in Compliance Action for Visa Stored Credential Framework

From the Visa Merchant Business News Digest, October 17, 2017.

In the 1 September 2016 edition of the Visa Business News, Visa introduced new rules related to credential-on-file transactions, including merchant disclosure requirements and transaction identifier requirements went into effect for merchants and acquirers on 14 October 2017.

However, based on stakeholder feedback, and after assessing market readiness and taking into account the holiday season system freeze, Visa will extend the time to make the necessary system changes until 30 April 2018.

While the rule is still effective as of 14 October 2017, Visa will not take any compliance action or assess non-compliance assessments to non-compliant entities prior to 30 April 2018. Entities that comply with the rule by 30 April 2018 will not be required to submit a waiver request to Visa.

End Visa bulletin.

The stored credential framework applies to all merchants that store credit cards. Note, while some stakeholders were not ready as per the above statements, CenPOS was. CenPOS replaces other payment gateways, for example, as well as solutions such as BillTrust, while enabling customers to keep their acquirers and other partners.

Christine Speedy, CenPOS authorized reseller, 954-942-0483. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

Test and fix TLS 1.0 to TLS v1.2 for merchant non-compliance notice

To keep your data safe, the Payment Card Industry Security Standards Council (PCI SSC) has mandated a security upgrade impacting all merchants where web browsers can be used in the payment process. Acquirers and payment gateways have set various deadlines in advance of the required PCI TLS v1.2 Security Protocol Upgrade by  2018. Either hardware may need to be replaced or software updated.

Recently, multiple vulnerabilities have been uncovered. Criminals are using the vulnerabilities at massive levels over prior years. Security company Zscaler blocked an average of 8.4 million SSL/TLS-based malicious activities per day in the first half of 2017 for its customers on its Zscaler cloud platform. That’s why all merchants need to upgrade to the most current version of TLS (Version 1.2) and should do so as soon as possible. Because this is an absolute necessity, merchants are getting emails about hard stop dates; if not fixed, merchants will not be able to process transactions after the deadline.

TLS Deadlines vary by acquirer and payment gateway.

  • Chase Paymentech, September 30, 2017.
  • Authorize.Net, February 28, 2018.
  • CenPOS, January 15th, 2018.
  • First Data varies by solution. Datawire will remove SSL v3, TLS v1.0, and TLS v1.1 on February 15th 2018.

TLS 1.0 and TLS 1.1 need to be disabled from browsers, servers and related applications. SSL 3.0 should have been disabled years ago.

Do not rely on server host companies or consultants to do this for you. It’s up to merchants to maintain PCI Compliance. If you get a notice of non-compliance from your acquirer and use a virtual terminal, test your browser below.

FREE Test SSL/TLS for Browser and Servers and updating TLS for card not present transactions:

Free SSL and TLS test from Qualys.  If you get a YES next to TLS 1.0, SSL 3, or SSL 2, then hardening is needed.

Try updating your browser and then run the test again. If the browser is current, go to your web browser settings or preferences and disable SSL and TLS 1.0. Run the same test on your web site. If you get a yes, go to your host administration and disable in security settings.

What is TLS Security Protocol?

Transport Layer Security (TLS) and its predecessor, Secure Sockets Layer (SSL) are both frequently referred to as “SSL”. When you go to a web page and the URL is “https”, the S stands for secure, and the domain host has a security certificate installed and enabled on the web host. Websites use TLS to secure all communications between their servers and web browsers. For example, when a merchant logs into a virtual terminal using a web browser, or a customer makes a payment online via a hosted pay page or ecommerce shopping cart.


Christine Speedy, CenPOS authorized reseller, 954-942-0483. B2B cloud payments solutions and CenPOS enterprise cloud payment solutions expert. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

Visa ID Intelligence Moves Payment Security Beyond Passwords

Biometrics and other authentication technologies help the payment industry create seamless and secure commerce experiences

SAN FRANCISCO–(BUSINESS WIRE)–Oct. 19, 2017– Visa (NYSE:V) today announced Visa ID Intelligence, a platform that allows issuers, acquirers and merchants to quickly adopt emerging authentication technologies and create more secure and convenient ways for consumers to shop, pay and bank on their connected devices. Available through Visa Developer Platform, Visa ID Intelligence offers a curated selection of leading third-party authentication technologies with simple integration using Visa APIs and SDKs—allowing clients to create, test and adopt new authentication solutions.

The Internet of Things is expected to grow to 20 billion connected devices by 2020, exponentially expanding the devices and environments in which commerce can take place—from wearables, such as rings and watches, to home personal assistants and connected cars. Many of these devices are voice activated and not designed for typical passwords—requiring a new approach to authentication, such as face, fingerprint or voice recognition, document verification, or device and user identification. A 2017 Visa survey showed that 69 percent of US consumers believe that biometric authentication will make payments easier than using passwords.

“A consumer encounters many authentication moments during the course of a day, whether making a payment, checking a balance, or sending money to family and friends,” said Mark Nelsen, senior vice president of risk and authentication products, Visa. “But traditional methods for authenticating a customer can create frustration or are simply not designed for the new ways people are shopping and paying. We built Visa ID Intelligence to help accelerate smarter and easy-to-use authentication solutions for any commerce environment—to better protect against fraud and to move closer to a world without passwords.”

Recent Aite Group research found that, as the speed and complexity of fraud and cyberattacks increases, institutions and companies must look to nimble technology solutions that provide consumers with security as well as convenience. While many competitors offer solutions, not all of them are ideal for the payments industry and the high level of privacy, security and regulatory oversight that are required for financial transactions. Financial institutions and merchants can adopt effective and secure solutions and accelerate time-to-market with streamlined onboarding and implementation through Visa as a single trusted source. Visa has vetted technology providers to ensure they meet industry expectations for security and consumer privacy, including onsite Visa security assessments, penetration testing, and ongoing compliance audits. The platform also enables simplified contracting, saving clients potentially months of negotiations.

“Financial institutions and merchants are working hard to create streamlined and delightful digital experiences,” said Julie Conroy, research director, retail banking practice, Aite Group. “At the same time effective consumer authentication is critically important, given the escalating cyber threat landscape. The good news is that a variety of technologies can help businesses find the win-win, providing superior security while at the same time removing unnecessary friction.”

Authentication Capabilities

Today, Visa ID Intelligence features include:

  • Identity Documents evaluates identification documents and matches selfies to photo IDs (e.g., driver’s license, passport, military ID), while extracting and converting document information into digital form. This authentication process can help financial institutions or merchants make smarter decisions and instantly provision banking services. Uses include creating new accounts, and as an alternative to customer service calls to perform password reset and lost or stolen card replacement. Au10tix provides identity document services through the Visa ID Intelligence platform.
  • Biometrics – allows clients to use biometrics such as face, fingerprint and voice to create simpler authentication experiences that meet consumer needs for convenience, security and speed. Applications include app login, payments, step-up authentication, and more. Daon, a global authentication and identity assurance solutions provider, will offer Visa ID Intelligence biometric authentication services.

Visa ID Intelligence offerings will expand in 2018 to user data and device data to improve digital identity decisioning, working with Neustar and ThreatMetrix. More information about Visa ID Intelligence can be found at

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network—enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit, and @VisaNews.

Source: Visa Inc.

B2B Steps to Visa Stored Credential Mandate Compliance

How can merchants get compliant with the Visa Stored Credential Transaction framework and mandates effective October 14, 2017?

Step by step getting started guide for B2B merchants:

Plan how you’ll comply with consent record requirements. See Improving Authorization Management for Transactions with Stored Credentials . Are you going to manage documenting everything or are you going to use technology to help you manage it? Ask your gateway if they’re going to provide a checkbox for consent and if you’ll be able to pull the opt-in records on demand. CenPOS, a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement will provide an automated solution for clients.

Update workflow and documents. Ensure your sales order or associated credit documents include sale, refund and cancellation policies. Add a checkbox for customer opt-in to terms, including online payments. CenPOS has an opt-in box and you can customize the text.

Verify if you have a system to manage authorization validity. What the heck does that mean? Many B2B companies have complex needs including pre-authorizations, incremental authorizations, delayed shipping etc. While you may get issuer approvals, that doesn’t mean the authorization is valid. The two most common rules B2B businesses struggle with are Settlement within timeframe for card not present sales, and Authorization amount and settlement amount must be equal. Per Visa Core Rules October 2017, for typical distributor and manufacturer card not present transactions, the authorization must settle no later than 7 calendar days from the date of the initial Approval Response. CenPOS automates compliance. Other payment gateways are incapable or may leave it up to developers to create a solution. Are you compliant now? Look at your merchant statement ‘pending interchange fees. If you see  EIRF or STD, that’s a red flag there’s a problem.

Replace paper credit card authorization forms, and any digital form that you can decrypt and view sensitive card data. Offer your customers a way to self-manage their own wallet with either a hosted online pay page or Electronic Bill Presentment & Payment. CenPOS offers both options, including a lite ‘request a payment’ option, and lets your customers choose both text and email. For those not ready to give up paper, CenPOS creates a printable PCI Compliant credit card authorization form for every stored card.

New to online payments? See Visa best practices to prevent brute force attacks. CenPOS includes recaptcha and client managed velocity and other rules as part of a layered security approach.hosted online pay pageVerify your gateway is ready or will be ready to send correct transaction data for the initial transaction and subsequent transactions for both customer initiated and merchant initiated use of the stored credential.  You’ll want the payment gateway to perform a zero dollar authorization and authenticate the cardholder with 3-D Secure. Ask your gateway if it will automatically flag a transaction as customer initiated stored credential or merchant initiated stored credential, or if they’ll require you to have multiple gateway accounts, one for each type. CenPOS does all this for you now in a single account.

Get an ecommerce merchant account. This is needed for online payments. Don’t run mail order telephone order (MOTO) transactions on the ecommerce account unless you know your payment gateway can alter the flag sent with transaction to change the transaction type. Many cannot. CenPOS manages all compliance seamlessly in the background; whether you need multiple merchant accounts varies by acquirer/processor.

Register for 3-D Secure, including Verified by Visa, with your acquirer. Don’t do this until you know which payment gateway will be used and get their instructions if applicable.

Communicate with customers. Advise any upcoming changes will increase efficiency and security for everyone.

Why comply? With full compliance, merchants can expect better qualified interchange rates, increased approvals (avoid declines based on issuer risk averse algorithms), reduced PCI Compliance burden, and increased efficiency for both buyer and seller. The cost of non-compliance is hefty, including higher interchange rates, penalty fees, and risk of both issuer and cardholder chargebacks.  

interchange rate qualification

The same transaction can process at different rates as shown above, depending on which rules you follow. CenPOS Smart Rate Selector automates compliance to qualify transactions at the lowest rate possible. Which rates are on your merchant statement now?

Why should developers choose CenPOS for their integrated payment gateway? CenPOS has native modules for ERP, shopping cart, accounting and other software.

  • Increase profits faster
  • More efficient, quicker reconciliation
  • More secure- from Encrypted Virtual Keypad to elimination of credit card auth forms
  • More robust- Wire, ACH, check, Paypal, credit card and more; text and email payments supported. No 3rd party Electronic Invoice solution needed such as BillTrust; CenPOS invoice portal and automated collections included.

Where can I buy CenPOS or learn more? You’ve already found one of the top salespeople, Christine Speedy. All agreements are direct with CenPOS, no middle man.

Resources and documentation – bookmark it!.  Join Christine Speedy’s email list.

DISCLAIMER: condensed and incomplete information! Information may be quickly outdated.

With the fast pace of changing rules, companies need a technology partner to automate compliance. Did you know?

  • CenPOS has a suite of solutions for companies just like yours, solving common problems and increasing profits virtually overnight.
  • For those not ready to give up paper, CenPOS creates a printable PCI Compliant credit card authorization form for every stored card.
  • CenPOS has ERP, ecommerce shopping cart, accounting and other plug-in modules available for quick and easy implementation.
  • I’ve been selling for CenPOS since day 1. Though I have other payment gateways available in my arsenal, nothing else compares for meeting business to business needs.

Christine Speedy, CenPOS authorized reseller, 954-942-0483 is based out of South Florida and NY. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.

Insurance Installment Payments: Visa Credit Card Processing Rules Change 2017

Insurance companies must comply with new VISA installment credit card processing rules changes effective October 2017 to maximize business profits and mitigate chargeback risk. Everyone in the payment ecosystem has or will need to make changes to comply, including acquirer, issuer, payment gateway, merchant, and sometimes integrated billing software.

payment gateway SaaS recurringVISA DEADLINE:

  • October 14, 2017 Visa stored credentials compliance mandate.


  • Obtain cardholders’ consent to store the credentials. Opt-in check box stored with payment gateway record is recommended.
  • Have a solution to retrieve consent records on request.
  • Disclose to cardholders how stored credentials will be used.
  • Notify cardholders when any changes are made to the terms of use.
  • When capturing card data for the first time, use a PCI compliant payment gateway to create a random token replacing sensitive data; eliminate paper credit card authorization forms or digital signature forms where payment data is collected on the form, not via a payment gateway.
  • Inform the issuer via a transaction that payment credentials are now stored. For example, perform an Account Number Verification Transaction via a Zero Dollar Authorization with 3-D Secure Verifed by Visa.This is managed by the payment gateway, and requires specific transaction indicator.  TIP: If the solution you’re using performs a $1 authorization, often with a void or reversal after, that’s because the payment gateway, and or the implementation, are out of date and don’t support current requirements. Ask how yours works- assume nothing!
  • Identify subsequent transactions with appropriate indicators when using stored credentials. Payment gateway to identify all future transactions after storing:

With an indicator that shows that the Transaction is using a Stored Credential for either Installment, Recurring or Unscheduled Credential On File.
With the Transaction Identifier of the Initial Transaction.

  • Follow all cardholder disclosure and consent requirements specified in the Visa Rules. Opt-in check box with digital record managed by the payment gateway is recommended to comply with issuer records requests.
  • If performing a preauthorization for any transactions, additional new requirements must be met, including for reversals and reauthorizations.


Increasingly complicated rules vary by card brand, business type and many other factors. This article may oversimplify such complexities. Merchants are advised to:

  • Use tools, including intelligent cloud-based payment gateways, to help comply automatically.
  • Segregate payment acceptance from applications; example, embedded payment object or i-frame.
  • Review Visa Stored Credential Transaction Framework bulletins
  • Review Visa Core Rules and Visa Product and Service Rules
  • Review workflow for the customer payment experience and confirm payment technology workflow is compliant with new rules. There is no automated update; merchants must actively participate in process to ensure compliance.


  • Compliance will increase approvals, customer satisfaction, and profits.
  • Reduce time spent on collections, increase automation, reduce attrition.
  • Cardholder authentication can qualify some transactions for lower interchange rates plus mitigate losses related to “it wasn’t me”, more commonly seen in higher risk insured policy holders.
  • Compliance required to participate in Visa Account Updater service.
  • Non-compliant transactions are essentially invalid authorizations, and issuers will be within their rights to chargeback via Reason Code 72. This is different than a consumer generated chargeback. Issuers are getting slammed with missed payment cardholders and need to get their money back some way; JP Morgan wrote off about $1B in Q1 2017 according to one source. The Wall Street Journal has published several articles over the last year about the surge in subprime credit cardholders missing payments. Overall, we’re looking at a national rate over 4% per quarter- over 16% annually, representing over a trillion dollars. Issuers may want to offset losses from subprime cardholders by collecting monies from merchants for the same.
  • Chargeback Risk includes the initial transaction and all subsequent transactions that are not in compliance for the allowable chargeback period. For example, if non-compliant the issuer could chargeback installments on October 14, November 14, and December 14.

Reference: Visa Stored Credential Transaction Mandates and also Visa Core RulesTable 5-21: Requirements for Prepayments and Transactions Using Stored Credentials.

Before selecting a payment gateway for installments payments, ask these questions:

  • How will it help with new Visa Stored Credential Mandates compliance?
  • Does it support 3-D Secure cardholder authentication, for customer initiated payments?
  • What type of digital record is created at the time of customer opt-in to terms, how is it retrieved, and how long is it retained?
  • Does it support Zero Dollar Authorization?
  • Does the receipt dynamically change based on type of transaction, i.e. cash, credit card single payment, installment payment etc.
  • Does it support level 3 processing for commercial cards (if applicable to business type)?
  • If I change banks or payment processors, how will it affect my customers? My business?

TIP: Most payment gateways will not be compliant on October 14. An easy starting point to reduce the list of vendor choices is to ask the payment gateway what type of digital record is created at the time of creating an installment agreement, and how will it be accessed? Need help to get compliant? Contact Christine Speedy to learn more about solutions for your business that are quick and easy to adopt, increasing efficiency and growing profits virtually overnight.

Christine Speedy, CenPOS authorized reseller, 954-942-0483 is based out of South Florida and NY. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships.