We are reviewing our procedures and had some questions regarding stop payments on recurring debit card transactions. We do require the customer to status their card at the same time as initiating the stop payment. What I'm curious about is the handling of any "pushed through" transactions - if a pre-auth transaction gets pushed through, and rejected due to the stop payment, it can then be returned simply as stop payment and isn't part of a dispute, correct? The customer would be credited and the transaction returned but it's not truly provisional credit and then subject to the Reg E dispute timeframes, right?

Are you a Visa or are you a MasterCard Issuer?

MasterCard

I am a Visa house, but I believe MasterCard likely has something similar. Visa has a Preauthorized Payment Service that stop payments are entered. Visa will decline the authorization. The transactions need to be stopped at Authorization- not after the authorization is approved. You can not return a transaction that posts. Of course you are covering for further transactions with statusing the card and issuing a new PAN- which is what we all had to do before Visa made the Preauthorized Payment Service available. But with EMV increasing the costs of the card, tokenization, and now Visa's VAU- Visa Account Updater- we need to utilize the Stop Payment more and more in order to minimize impacts/friction of replacing the PAN to cardholders-for those recurring transaction types.