PaymentService 2000, which is being rolled out in phases over the next three years, will create the new global electronic processing standard necessary to ensure transaction growth and tighter risk control.
Members recognized that successful expansion would require an overhaul of both the back office procedures and the processing standards used by the industry. And Visa knew it had to become flexible enough to support the full range of payment service options now in use by members around the world.
In the first phase of PS2000, commencing April 1, 1993, VisaNet will begin assigning an individual "life-cycle" validation number to each PS2000 transaction at the time of authorization. This identification code will remain with the transaction through the clearing and settlement process; then it will be stored at Visa for use, if necessary, in resolving chargeback disputes, supporting copy requests or providing arbitration services.
For the first time, issuers will be able to match incoming clearing transactions with outstanding authorizations. Instead of using approximations, issuers will know exactly which holds on funds have been satisfied to ensure accurate cardholder open-to-buy balances. This will result in a significant increase in Visa sales, as cardholders are able to access their full purchase limits without added risk to issuers.
In addition, improved chargeback handling will benefit issuers and acquirers, who ca serve merchants with greater confidence, knowing that unnecessary declines and chargebacks will not hurt business. One of the reasons for this is that once an authorization is obtained, an acquirer will not receive a chargeback that requires proof of authorization.
To all acquiring members whose face-to-face transactions meet the PS2000 standards, Visa is offering a low electronic incentive interchange reimbursement fee--guaranteed for three years. The requirements include providing new data elements, full magnetic stripe data transmission, electronic authorization and capture and transaction data submission within two days of authorization. members have already received PS2000 technical specifications, and certification testing will begin in February 1993.