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#2145787 - 09/13/17 01:30 PM Visa Account Updater & Visa Stop Payments
bankinginky Offline
New Poster
Joined: Sep 2010
Posts: 18
Is anyone familiar with Visa's stop payment service for recurring payments, or as they call it "Preauthorized Payment Cancellation Service"? We were not aware that the service even existed until we began asking questions about the VAU service. One of our concerns with VAU is that a customer will authorize a recurring payment and either be unable to cancel because they are unable to reach the merchant (happens A LOT) or they will cancel, but the merchant will continue to process debits anyway. Up to this point in these situations we would close the card in an attempt to prevent further debits from that merchant and issue a new card. With VAU, however, the new card information will be provided to the merchant if the merchant requests it. That is a huge problem, though it is only one of several concerns we have. We raised this concern with our card processor and they told us the only way to prevent this from happening was to use Visa's stop payment feature. I have requested access to the service through VOL, but do not yet have access. I am trying to find someone who might be familiar with it, and in particular what the fees are for it. Thank you!

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Operations Compliance
#2145796 - 09/13/17 01:52 PM Re: Visa Account Updater & Visa Stop Payments bankinginky
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
Your alternative to using the cancellation service is to code the customer's card in the VAU as "Contact Cardholder" advice. VISA Operating Rules state this reason code can be used if:

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.

In other words, the cardholder has the right to opt-out of the service. Of course, if they do so, then not only with the merchant they are trying to stop not receive the updated information, none of their other merchants initiating recurring payments will either.
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