Visa previously communicated an effective date of April 2018 for merchants and acquirers to begin submitting authorizations for purchase returns and credits. Visa has recently announced a delay for required support of the purchase return authorization message until October 18.
The credit/refund/purchase return authorization request will be displayed to the cardholder as a pending credit/refund when approved by the issuer. The credit/refund settlement transaction will continue to be used by merchants, acquirers, and issuers to return the funds back to the cardholder.
Effective October 2018, merchants must begin to submit credit/refund for authorization requests.
Please note the additional impacts outlined below for chargeback and fee modifications.
- Credits/refunds/purchase returns that do not receive a valid authorization may be charged back by the issuer using chargeback reason code 71 (declined Authorization) and 72 (No Authorization, as applicable).
- Credit voucher authorizations will no longer be assessed the Network Acquirer Processing Fee (NAPF) – (Effective Date for this item is still under review, updates will be provided when available)
- Credit vouchers will be included in the Zero Floor Limit and Authorization Misuse Processing Integrity Fee Assessment – (Effective Date for this item is still under review, updates will be provided when available)
Vantiv continues to work directly with Visa to further define the requirements associated with this change. Updates will be shared through your Relationship Manager.