{"id":4311,"date":"2017-02-27T15:17:05","date_gmt":"2017-02-27T20:17:05","guid":{"rendered":"http:\/\/3dmerchant.com\/blog\/?p=4311"},"modified":"2021-12-03T03:22:51","modified_gmt":"2021-12-03T08:22:51","slug":"special-authorization-rules-merchants","status":"publish","type":"post","link":"https:\/\/3dmerchant.com\/blog\/merchant-processing-industry-news\/special-authorization-rules-merchants","title":{"rendered":"Visa Special Authorization Rules Hotel Lodging and Rental Merchants"},"content":{"rendered":"<p><a href=\"https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-4316\" src=\"https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards-300x199.jpg\" alt=\"visa credit card\" width=\"300\" height=\"199\" srcset=\"https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards-300x199.jpg 300w, https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards-768x510.jpg 768w, https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards-452x300.jpg 452w, https:\/\/3dmerchant.com\/blog\/wp-content\/uploads\/2017\/02\/visa-cards.jpg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>In 2016, Visa announced new requirements for estimated and incremental authorization requests, introduced new authorization validity periods and merged car and truck rental categories into a new vehicle rental category. These changes are significant, impacting <strong>chargeback risk to cruise, lodging and vehicle rental, heavy duty equipment rental and other merchants<\/strong>.<\/p>\n<p>Two changes of note:<\/p>\n<ul>\n<li>Revisions have been made to split the &#8220;Other Fraud&#8221; Dispute condition under Enhanced Dispute Resolution into separate conditions for <strong>Card-Present<\/strong> and <strong>Card-Absent<\/strong> Transactions, and to incorporate changes to the payment<br \/>\nflow related to Disputes. This will be covered in a separate article. A key component to mitigate chargeback risk is support for Verified by Visa.<\/li>\n<li>Expansion of <strong>Special Authorization Allowances<\/strong> Effective 15 October 2016, 22 April 2017, and 14 October 2017.<\/li>\n<\/ul>\n<p>Revisions to <strong>Special Authorization<\/strong> rules include processing of:<\/p>\n<ul>\n<li>Estimated Authorization Requests<\/li>\n<li>Initial Authorization Requests<\/li>\n<li>Incremental Authorization Requests,<\/li>\n<li>Authorization Reversals, Issuer hold, releases, and Chargeback rights<\/li>\n<\/ul>\n<h2>Applicable Merchants Impacted Effective 22 April 2017:<\/h2>\n<ul>\n<li>Aircraft rental<\/li>\n<li>Bicycle rental<\/li>\n<li>Boat rental<\/li>\n<li>Equipment rental<\/li>\n<li>Motor home rental<\/li>\n<li>Motorcycle rental<\/li>\n<li>Trailer park or campground rental<\/li>\n<li>Lodging<\/li>\n<\/ul>\n<h2>VISA Authorization Rule Summary:<\/h2>\n<ul>\n<li>Must send &#8220;estimated&#8221; flag with the initial authorization; the amount is not final and may change.<\/li>\n<li>Estimate cannot include amount for potential damage or insurance deductible.<\/li>\n<li>When closing out, must indicated that sale is &#8216;final&#8217;, and do a reversal for any difference within 24 hours.<\/li>\n<\/ul>\n<p>There are many nuances to the rules and potential chargeback reason code 72 risk, which were non-existent in the past. <strong>Rather than consumer initiating a chargeback, the issuer will be within their rights to initiate a chargeback if the merchant fails to comply with the rules, for example, failing to submit the correct authorization flag for an <span style=\"color: #0000ff;\">estimate<\/span>.<\/strong><\/p>\n<p>Further details about subsequent authorizations vary by industry. For example, Merchant may need to submit a final <strong>Incremental Authorization Request<\/strong>. Due to the complexity and variation by industry, merchants are advised to read the rules and ensure the payment processing technology in place will support the new rules. <strong>Payment gateways<\/strong> are a key component for compliance; all gateways must be updated if they&#8217;re going to support merchant compliance needs.<\/p>\n<p>Reference: Visa Core Rules and Visa Product and Service Rules, 15 October 2016. <a href=\"https:\/\/3dmerchant.com\/blog\/merchant-bulletins-downloads\">https:\/\/3dmerchant.com\/blog\/merchant-bulletins-downloads<\/a><\/p>\n<p><a href=\"https:\/\/3dmerchant.com\/blog\/about\">Contact Christine Speedy,<\/a> for compliant lodging and rental payment gateway solutions that work with your existing financial partners, including First Data, Chase Paymentech, Tsys, Moneris, Global, and many others.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2016, Visa announced new requirements for estimated and incremental authorization requests, introduced new authorization validity periods and merged car and truck rental categories into a new vehicle rental category. These changes are significant, impacting chargeback risk to cruise, lodging &hellip; <a href=\"https:\/\/3dmerchant.com\/blog\/merchant-processing-industry-news\/special-authorization-rules-merchants\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,132,537],"tags":[44,588,15],"class_list":["post-4311","post","type-post","status-publish","format-standard","hentry","category-merchant-processing-industry-news","category-merchant-account-qa","category-payment-gateway","tag-payment-gateway","tag-verifed-by-visa","tag-visa"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/posts\/4311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/comments?post=4311"}],"version-history":[{"count":2,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/posts\/4311\/revisions"}],"predecessor-version":[{"id":4434,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/posts\/4311\/revisions\/4434"}],"wp:attachment":[{"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/media?parent=4311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/categories?post=4311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/3dmerchant.com\/blog\/wp-json\/wp\/v2\/tags?post=4311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}