SAN FRANCISCO -- Visa Inc. has announced plans to raise its Visa Easy Payment Service "no signature required" limit from $25 to $50 for two key U.S. merchant categories. Starting in October 2012, U.S. discount stores and grocery stores/supermarkets can accept Visa cards for transactions up to $50 without requiring a cardholder signature or PIN, or providing a customer receipt unless requested by the cardholder.
This change is designed to increase speed at the point of sale, cardholder convenience and operational efficiencies for a large number of merchants.
Previously known as the No Signature Required program, Visa Easy Payment Service allows merchants to eliminate cardholder verification and receipts on qualifying smaller-value transactions. This helps make the payment process easier and more convenient for both merchants and cardholders. The program has been available to the majority of merchant categories in the United States since July 2010, for purchases up to $25.
As Visa introduces the $50 limit, it will review merchant, cardholder and card issuer feedback and may expand this higher transaction limit to additional merchant categories in the near future. Approximately 80% of face-to-face Visa consumer transactions in the United States are under $50.
"Visa is committed to delivering solutions to help our merchant and financial institution partners better serve their customers, reduce costs and grow their businesses," said William M. Sheedy, group president, Americas, for Visa Inc. "Visa Easy Payment Service has been extremely popular with merchants and cardholders in busy retail environments. As a result, merchants have asked us to expand the program to purchases up to $50, so that they can more efficiently support consumers' growing preference to use cards instead of cash or checks for everyday purchases."
Visa also announced changes to its dispute resolution process to reduce unnecessary chargebacks and merchant documentation requirements and promote faster, more-efficient dispute resolution for all participants in its payments system.
Starting in April 2013, merchants will be protected from fraud chargebacks on transactions that have been electronically read--swiped or dipped in, or waved past, a card reader--helping to reduce merchant fraud management costs when appropriate acceptance procedures have been followed at the point of sale.
In addition, Visa will eliminate the requirement for its card issuers to ask merchants for a copy of the receipt when a cardholder disputes a transaction, resulting in backoffice operational savings for everyone. There is no change to existing fraud liability associated with these changes.
The changes to Visa's Easy Payment Service and dispute resolution process will help its merchant and financial institution partners to better serve their customers and grow their respective businesses.
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