MAG Insights

Announcements from the MAG & Featured Articles

MAG Sponsor Spotlight: Going Beyond the Transaction to Deliver Greater Value to Merchants (MAG Quarterly- Volume Three, Issue Three)

By Ramon Martin, Global Head of Merchant Sales and Solutions, Visa Inc.

September 3, 2015

It’s a complex time to be a merchant. There’s an unprecedented amount of innovation-induced change, with new challenges and threats every day. Mobile commerce is growing at three to four times the growth rate of eCommerce – allowing sellers to reach buyers anytime and anywhere. There’s been a rapid expansion in connectivity: the world is expected to see connected devices grow from 10 billion to 50 billion in just the next three to four years. And, unbelievable levels of personalization and tailoring are now possible based on the seemingly endless streams of data.

A great amount of this change ties back to payments. Yet, payments is just one part of any merchant’s business. We know there isn’t always the time to figure it all out. So we are very consciously changing some of the many things we do at Visa in order to help merchants thrive during this exciting, yet complicated, time of change.

Reducing complexity and making it easier to do business with Visa

We have a large team of people going line by line through our rules and processes to identify ways to simplify things. Last year, we rewrote our entire Operating Regulations, effectively cutting our rule book in half. Updating and changing rules in collaboration with industry associations and industry leaders has so far helped us ensure our changes address real pain points and business priorities.

Following are a few changes we’ve made, hopefully to the delight of many of you:

−        Increasing POS authorizations – we recently eliminated the antiquated process of POS authorization referrals on more than 20 million transactions annually and put in place solutions to increase approvals for pre-paid cards.

−        Making it much easier for T&E merchants to be compensated for no-shows and rental damages.

−        Reducing card present fraud chargebacks for merchants that follow the correct procedures.

−        Raising the merchant liability for counterfeit fraud to $100 on automated fuel dispenser (AFD) transactions helping prevent almost 25,000 pump shutoffs each year.

−        Eliminating lost and stolen fraud liability for EMV transactions at AFDs.

−        Enabling e-commerce merchants to challenge friendly fraud using evidence that the cardholder did actually make the transaction such as passenger manifests from a flight or social media data.

−        Introducing a new service – Visa Transaction Advisor – that provides intelligent analytics to help fuel merchants identify fraud before it happens. For our initial launch customers, fraud rates have dropped more than 20%.

−        Creating an entirely new way for airlines to process and manage their ancillary services – such as bag fees, upgrades, and on-board purchases. These services are a big deal for airlines – representing more than 50% of all their transactions.

Our teams are working through hundreds of ideas like these and we are committed to continuing the march forward to make it easier to do business with Visa.