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What the Visa Stop Payment Service Does for Merchants

Blog post from Basis Theory

Post Details
Company
Date Published
Author
Basis Theory
Word Count
900
Company Posts That Month
2
Language
English
Hacker News Points
-
Post removed?
No
Summary

Visa Stop Payment Service (VSPS) allows consumers, through their card-issuing banks, to block card-on-file transactions from being authorized, cleared, or settled on the Visa network, potentially ending recurring payments without directly notifying a merchant. Issuers benefit through fewer chargebacks, lower processing and regulatory costs, and improved customer experiences, while consumers gain a simpler alternative to merchant cancellation procedures and payment service providers can use detailed decline codes to prevent futile future submissions. Stops may apply to a specific merchant, an entire merchant category code, or all card-on-file payments on a particular account. Although VSPS can complicate revenue forecasting for subscription businesses, it represents only one source of payment failure among issues such as expired cards, insufficient funds, and fraud. Merchants can limit its impact by identifying VSPS-related hard declines as final, pausing affected accounts and beginning dunning procedures where appropriate, while retrying or remediating potentially recoverable soft declines through timing adjustments, alternative payment providers, account updater services, and customer communications.

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