I have a question, this is from the VISA Core Rules:
Last edited by NSF, CRCM; 04/12/18 04:34 PM. Reason: Added clarification
22.214.171.124 Payment of Existing Debt
Effective through 13 April 2018
A Merchant must not accept a Card1 to collect or refinance an existing debt unless either:
● The Transaction results from conversion of a Merchant's existing card program to the Visa
Program or Visa Electron Program.
● The Merchant is a government agency and the Transaction represents a loan payment. In this
case, the Transaction amount must not equal the loan balance unless it is the final payment.
A Merchant must not accept a Visa Card or Visa Electron Card as payment for a debt that is
considered uncollectible (for example: payments to a collection agency).
A Merchant must not:
● Accept Cardholder payments for previous Card charges
● Complete a Transaction that represents the collection of a dishonored check
These requirements do not apply to a Merchant in the US Region.
What does the last part mean?
Edit: Let me clarify. Does the last sentence mean a bank located in the United States is not bound by this section or does it mean something different?
It is better to act cautiously beforehand than to suffer afterward.
The answers I give are my opinions. Not legal advice.