Visa Raises 'No Signature' Limit for Discount, Grocery
As of that time, retailers in those channels will be able to accept Visa cards for transactions of up to $50 without requiring a cardholder signature or PIN, or providing a customer receipt unless the cardholder requests it. The change aims to increase speed at the point of sale, cardholder convenience and operational efficiencies for many retailers, according to Visa.
Formerly known in the United States as the "No Signature Required" program, Visa Easy Payment Service enables retailers to forgo cardholder verification and receipts on qualifying smaller-value transactions. This helps make the payment process easier and faster for both retailers and cardholders. The program has been available in most U.S. retail categories since July 2010, for purchases of up to $25. As the $50 limit is rolled out, Visa will review retailer, cardholder and card issuer feedback and may expand the higher transaction limit to other retail channels in the near future. About 80 percent of face-to-face Visa consumer transactions in the United States are under $50, the company said.
"Visa is committed to delivering solutions to help our merchant and financial institution partners better serve their customers, reduce costs and grow their businesses," noted Visa Group President, Americas William M. Sheedy. "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."
Additionally, Visa will change its dispute resolution process to reduce unnecessary chargebacks and retailer documentation requirements for a quicker, more efficient process for all participants in its payments system.
Starting in April 2013, retailers will be protected from fraud chargebacks on transactions that have been electronically read (i.e., swiped or dipped in, or waved past, a card reader), helping to lower retailer fraud management costs when appropriate acceptance procedures have been followed at the point of sale. Further, Visa will waive the requirement for its card issuers to ask retailers for a copy of the receipt when a cardholder disputes a transaction, leading to back-office operational savings for all parties. There will be no change to existing fraud liability in tandem with these changes.
The revised Visa Easy Payment Service and dispute resolution process will help Visa's retail and financial institution partners better serve their customers and grow their respective businesses, the company added.