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#2129541 - 05/08/17 02:48 PM Visa/MasterCard Automatic Updaters
Jen J Offline
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Posts: 144
We recently received information regarding Visa's Account Updater and MasterCard's Automatic Billing Updater, which automatically provide card number and expiration date updates to merchants who maintain card-on-file account information to process recurring customer payments. The thought process is that automatically updating this information will benefit consumers (no interruption in service) and will save merchants money (not having to go after new card information) when cards are reissued due to normal expiration or because they are lost or stolen.

The service will be mandatory for card issuers, but cardholders can individually opt out of this service. Visa and MasterCard are not requiring us to notify our cardholders of this service or of their ability to opt out of it, but our core processor recommends that we notify cardholders anyway and give them the opportunity to opt out.

How are you all handling this? Has anyone decided not to notify customers about it or not give them the opportunity to opt out? If you are going to notify customers, what type of notification are you giving, and do you feel like this has impacted your Reg P privacy notice? I don't think it applies to that notice, but I want to make sure I'm not missing anything.

Thanks!

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#2129798 - 05/09/17 11:01 PM Re: Visa/MasterCard Automatic Updaters Jen J
fmissle Offline
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Joined: Jul 2007
Posts: 1,016
Pac NW
Our card services provider notes that it is a requirement to offer an opt-out option for all existing and future cardholders.
We will, unfortunately, be required to provide that option and track it as well. I assume that we'll end up changing something on our onboarding process to ask the question, although we don't have to comply for another 5 whole months (yikes!).

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#2131827 - 05/24/17 09:34 PM Re: Visa/MasterCard Automatic Updaters Jen J
c@c Offline
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Georgia
I would also be interested in hearing how other banks plan on providing customer notification of this service. We were thinking of a statement message, but we all know customers don't really look at those. Also, will you require customers to opt out in writing or will verbal be sufficient?

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#2131840 - 05/24/17 10:57 PM Re: Visa/MasterCard Automatic Updaters c@c
'Lil Freak! Offline
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The psych ward
Our card processor (Fiserv) sent us a similar notification. The first one said we had to provide cardholders an opt-out. The second one said to check with compliance or counsel. We are waiting to see how our core and Fiserv will accommodate this. We may be updating our Account Agreement to offer the opportunity to opt-out, or possibly adding this to our card mailer.

Counsel pointed out that Visa rules state that a US Issuer must enroll all of its licensed BINs in VAU. The rules also state that an Issuer that uses VAU must submit updates for cards (acct #/exp changes, closed accounts, and contact cardholder) under its enrolled BINs. The rules seem to not permit allowing cardholders to opt-out.

He did say that there would be some benefit in communicating the service to cardholders so they are aware the service in case they want to revoke any authorizations (expired cards won't necessarily stop it).
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#2134557 - 06/15/17 07:04 PM Re: Visa/MasterCard Automatic Updaters Jen J
waterdog Offline
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Joined: Jan 2013
Posts: 51
I think we are going to be doing a bulk mailing asking customers to opt in or out in writing. We also use Fiserv and now 'Lil Freak you have me a little nervous about cardholders not having the option to opt-out. Anyone else have any updates?

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#2135777 - 06/26/17 01:53 PM Re: Visa/MasterCard Automatic Updaters Jen J
Bankwoman1 Offline
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Joined: Dec 2015
Posts: 1,046
Midwest
We also use Fiserv and I was under the impression that we could allow customers to opt-out - after reading these posts I now question that. Also - if a customers card is closed to fraud and a new card issued - does the new account number get updated or not? I seem to be hearing different things from different people. I can't hardly find any information on this from MasterCard and it's driving me crazy! Anybody have any new updates on this account updater?

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#2135863 - 06/26/17 06:41 PM Re: Visa/MasterCard Automatic Updaters Jen J
John Burnett Offline
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John Burnett
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I suggest you talk with Fiserv.
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#2154243 - 11/20/17 04:17 PM Re: Visa/MasterCard Automatic Updaters waterdog
ChristineS Offline
New Poster
Joined: Mar 2009
Posts: 1
I'm late to the party, but:
Pg. 782 of the newest version of Visa's Operating rules says
"Closed Account" advice and "Contact Cardholder"
advice
Permitted only if any of the following apply:
● The account is closed, has been reported as lost
or stolen, or is not maintained.
● The Cardholder requests that specific new
information not be provided.
● The Issuer cannot or will not provide specific
information.

So it looks like we can safely allow them to "opt-out".

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