I have a question, this is from the VISA Core Rules:
1.5.5.4 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:
â— The Transaction results from conversion of a Merchant's existing card program to the Visa
Program or Visa Electron Program.
â— 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:
â— Accept Cardholder payments for previous Card charges
â— 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?
Last edited by NSF, CRCM; 04/12/18 04:34 PM. Reason: Added clarification
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It is better to act cautiously beforehand than to suffer afterward.
The answers I give are my opinions. Not legal advice.