Visa Credit Card Acceptance Guidelines

Written by Nickel - 26 Comments

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I was recently digging around for information on the Visa website when I ran across a document containing the Visa card acceptance guidelines for merchants. It includes some pretty interesting information that I thought was worth sharing.

Visa credit card rules

What follows is a summary of Visa’s rules regarding card acceptance. I’ve mentioned some of these things in the past, but ultimately decided that it’s worth having them all in one place.

Merchants can choose to honor all Visa cards, Visa credit and business cards only, or Visa consumer debit and prepaid cards only.
Merchants must always honor valid Visa cards in their acceptance category regardless of the dollar amount of the purchase. Minimum and maximum purchase amounts are a violation of Visa rules.
Merchants must always treat Visa transactions like any other transaction (with a minor exception). They may not impost a surcharge for using a Visa card, but can offer a cash discount. This discount cannot be offered for use of a “comparable card” such as a different credit card.
Merchants who offer an alternate payment channel, such as telephone or online, are allowed to add a convenience fee as long as it is disclosed, never applied to face-to-face transaction, applied to all forms of payment through the alternative channel, etc.
Merchants must include all applicable taxes in total transaction amount, and may not collect taxes separately in cash.
Restaurants, cab drivers, etc. can only authorize an account for the known amount, not for the transaction amount plus estimated tip.
Merchants may not provide cash refunds for merchandise originally purchased with a Visa card.
Merchants must deposit their Visa transaction receipts within five calendar days.
All electronic POS terminal are required to provide account number truncation, such that only the last four digits of the credit card number are printed on the customer’s receipt. The expiration date should not appear.
Merchants must keep cardholder account number and personal information confidential.
Return/exchange policies must be properly disclosed before a transaction is completed, or made available online or via mail for “card-absent” transactions.
An unsigned credit card is invalid and should not be accepted. If an unsigned card is presented, the merchant should check the cardholder’s ID, ask the customer to sign the card, and compare the signature to the one on the ID.
Writing “See ID” or “Ask for ID” is not a valid substitute for a signature. The customer should be asked to sign the card, as outlined above.
Visa rules do not preclude merchants from asking for cardholder ID prior to completing a transaction, but merchants cannot make the presentation of ID a condition of acceptance.

I don’t know about you, but I’m regularly asked for ID when I make purchases, and I don’t mind. In fact, I’m one of those people carrying around an invalid card because I chose to write “Ask for Photo ID” on the back instead of signing it.

My biggest complaint is when a merchant enforces a minimum purchase requirement. While I fully understand that even small purchases are accompanied by significant processing fees, nothing frustrates me more than getting to the register and being told I can’t use a credit card unless I spend more money.

At the same time, it’s important to recognize that the cashier doesn’t make the rules and is just trying to do his/her job. Thus, if you have a problem with a merchant’s policies, it’s best to take it up with a manager and/or your card issuer.

Source: Visa.com

Published on February 26th, 2010 - 26 Comments
Filed under: Credit Cards
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

26 Responses to “Visa Credit Card Acceptance Guidelines”

1
Brent Says:
February 26th, 2010 at 11:16 am
so in following the rules they should never accept your card because you have failed to put your signature on the back of it….is that correct?
2
Nickel Says:
February 26th, 2010 at 11:47 am
Yes, sort of. Actually, they should check my ID and force me to sign it in front of them to see if the signature matches the one on my ID. This seems to be the one instance in which they are allowed (expected) to check your ID.

This is kind of circular in that they’re not allowed to check your ID unless you fail to sign your card. Thus, if you write “Check ID” on the card, they have to ask for your ID, ask you to sign the card, and then check the signature against the ID.

Of course, this isn’t how it works in real life. I’ve never had anyone question my lack of a signature. In fact, most merchants are more than happy to check your ID, and many will do it even if you *have* signed your card.

As I said above, I don’t have a problem with merchants wanting to see my ID. They’re just trying to prevent fraud and that, in my opinion, is a good thing.
3
Floridian Says:
February 26th, 2010 at 11:55 am
So I guess my card is invalid also…interesting. Mine says “See ID.” The only place I’ve ever had a problem with that is at the post office…but that was a long time ago – before you could order stamps & other supplies online and have them delivered by your mail carrier. Funny how you can use a card online, but can’t use the same card in person unless it is signed.

The last rule is also interesting. So it seems the cashier can ask for ID, but if you don’t show any ID, the cashier can NOT refuse to accept the card. I could have some fun with that one
(if I sign my card first, that is)

I wonder – what are the penalties if a merchant is reported to have broken any of these rules?
4
Sara Says:
February 26th, 2010 at 12:29 pm
What I am curious about is the gas stations that are now charging extra if you use a credit card. Or rather – giving a “discount” to cash customers. I can see how they are wording it differently, and it doesn’t come up as a hidden surcharge – its just an entirely different price per gallon which is clearly displayed on the pump.

Im sure they have neatly maneuvered the legalese on that one.
5
Brent Says:
February 26th, 2010 at 4:26 pm
it says its okay to give a discount for cash, just not for other credit cards
6
lucas Says:
February 26th, 2010 at 6:00 pm
“I don’t have a problem with merchants wanting to see my ID. They’re just trying to prevent fraud and that, in my opinion, is a good thing.” — Nickel

“”"”"”

Hmmm. Would you have a problem if merchants wanted ID for a cash transaction ?

You have nothing to hide and are eager to help fight fraud, right ?

Merchants are more at risk to counterfeit money; if they accept and try to deposit phony bills– the bank can seize all of it, at a total loss to the merchant.

But merchants risk nothing accepting a valid credit-card number — the card issuer eats the entire amount of any fraudulent transaction.

Merchants/clerks who demand personal ID for credit card purchases… are either ignorant or malicious.

And it’s not only an unnecessary inconvenience to customers, there’s a real threat of identity-theft by crooked merchants or merchant employees– your Drivers License (typically asked for) is an information goldmine for thieves, especially when they also have your complete credit-card info in their hand, too.

Besides, any crook asked for ID on a credit-card purchase… can just say he doesn’t have any other ID with him at the moment — the clerk must complete the transaction anyway under the contractual rules with credit-card companies, unless there’s some other obvious sign of fraud by that crook.

Valid credit-cards ‘are’ personal ID ! That’s the primary reason they were invented by the original “Diners Club” company.
7
Tom Mahoney Says:
February 26th, 2010 at 10:44 pm
lucas,

You said: “But merchants risk nothing accepting a valid credit-card number — the card issuer eats the entire amount of any fraudulent transaction.”

Whoever told you that was seriously misinformed. Issuers hardly ever eat fraud losses – merchants do.

You said: “Merchants/clerks who demand personal ID for credit card purchases… are either ignorant or malicious.”

Ignorant of the rules, perhaps, but certainly not malicious. They are trying to protect themselves and YOU against credit card fraud. If it was your card and it had been stolen from you, you’d be damn glad the merchant asked the guy that stole it for identification. You probably wouldn’t loose any money if you reported the theft quickly but you would have the hassles of phone calls and a good bit of paperwork.

Tom Mahoney, Founder & CEO
Merchant911, LLC
Mercahnt911.org
8
Eric Says:
February 27th, 2010 at 2:17 am
Never had a problem with my lack of signature but ran into some when I went abroad. Lesson: other countries have different enforcement levels.
9
lucas Says:
February 27th, 2010 at 11:05 am
Tom Mahoney:

Normal ‘brick & mortar’ merchants are NOT liable for fraudulent credit-card purchases… as long as those merchants follow standard credit-card-company rules for “Card-Present” transactions. The merchant will get paid — even if a stolen credit-card is used.

However, ‘Liability’ for fraud shifts from the card issuer to the merchant for ‘Card-Not-Present’ sales (mail order, telephone and internet sales). The merchant is generally liable for credit card “Charge-Backs” {bank declines payment}. This reflects the much higher fraud risk with physically separate buyers & merchants.
Despite that, if it was such a bad liability deal for merchants… no merchant would accept a ‘Card-Not-Present’ sale — but clearly they love the profits involved.

The specific discussion here is about clerks demanding additional ID for in-person credit-card sales. Such demands are unnecessary and violate normal credit-card-company contractual requirements with merchants. It also risks ID-theft of honest credit-card customers.

Of course, it’s a 2-way street of risk. There are plenty of crooked or sloppy merchants (especially on the internet) who cheat customers on credit-card sales, or expose customers credit-card & personal information to theft. The news is filled in recent years with massive credit-card data breaches (..like TJX corp.) where tens of millions of consumers had their personal info stolen… due to extreme negligence by “reputable” merchants.

Average folks should always carefully protect their personal information & privacy. Decline any requests for additional ID and politely insist the transaction be completed according to the rules fully agreed to by the merchant.
10
paranoidmuch? Says:
February 27th, 2010 at 11:35 am
Just because you’re paranoid, doesn’t mean they aren’t out to get you!

*snicker*
11
Nickel Says:
February 27th, 2010 at 12:54 pm
lucas: No, I wouldn’t show ID for a cash purchase, but the two aren’t anywhere near equivalent. When I talk about fraud prevention, I’m not personally concerned with the merchant side of things. Let’s say my credit card gets stolen. I would *want* merchants to card the thief and turn them away, so I’m willing to deal with that minor inconvenience myself. Sure, I have fraud protection, but it’s a pain in the butt to deal with it. With cash, I don’t stand to benefit, so I’m not interested. Even the merchant wouldn’t benefit unless they went so far as to record the info off your ID and attach it to the cash you paid them. Every time I’ve been asked for ID, it’s been for a cursory name/photo check.
12
D. Patry Says:
March 1st, 2010 at 4:36 pm
So, all of the small, ma & pa stores in Manhattan who do not accept your credit card for transactions less than $10 or even $5 are breaking the terms of their contract with Visa??

How do almost all bodega’s get away with it? Is it just that no one knows of the rule and no one reports it?
13
Drew Says:
March 2nd, 2010 at 9:48 pm
The biggest problem with checking ID is that it is checking something that the merchant cannot themselves verify as being accurate. The merchant has no way of knowing if your ID is yours and they even less likely know what another state’s ID is supposed to look like. My father, before discovering this, would be refused all the time because his legal, valid drivers license was a piece of paper with no photo from New Jersey. His only photo ID was his military ID that contained his Social Security Number on the front.

The other issue is that ID tends to include your address, including your zip code, on the front. You have just handed a stranger ALL of the information needed to make non-present transactions. An address and CVC2 are easy to remember for a few minutes and it is very easy to change the settings on a terminal so that the customer receipt is not truncated. That means the merchant can easily reprint a copy of your receipt that shows your full credit card number, while also having your address and CVC2 code.

There is absolutely no reason for a merchant to ask for ID. If they follow the rules as written they get paid. If you follow the rules and just sign your card, you don’t loose your money.

—

I think most places get away with minimum purchases and fees is because 1) people do not know, 2) its easier just to pay and 3) VISA lacks a central means of reporting. MasterCard on the other hand, who has very similar rules, does have a website were one can report merchant violations.
14
lucas Says:
March 3rd, 2010 at 7:49 am
Drew — well said.

It’s extremely naive to routinely hand over extra ID to any cashier, anywhere, anytime… who demands it.

That demand is already proof-positive that the cashier is violating standard credit-card transaction rules — so why automatically trust him with even more of your personal information ?
15
GhostMom01 Says:
March 5th, 2010 at 12:38 pm
@Tom Mahoney: I worked for Discover for 10yrs. They actually budget for write-offs which included bad debt, charge backs, and fraudulent purchases.

I made the suggestion that Discover hold the merchant partially accountable for fraudulent charges. They adamantly refused to force any merchants to pay for any part of the fraudulent charges. My suggestion came on the heels of my mother’s wallet being stolen and her Visa card WITH HER PICTURE ON IT was used to purchase $250 worth of shoes at Foot Locker. I have always felt the merchant should be held accountable for that specific fraudulent purchase since I’m sure the purchaser did not find a 60yr old woman to make the purchase for them.

I also made the suggestion that cardholders be given the opportunity to opt-in and turn on a flag to tell the merchant they was supposed to request an ID for the purchase. Discover turned down that idea too because they

So, I am not sure where you got your got your information, but I know that at least Discover was concerned about losing merchants and inconveniencing customers. Perhaps Visa/MC are so big they do not care about losing their merchants or customers but I find it hard to believe that.
16
Tom Mahoney Says:
March 5th, 2010 at 1:12 pm
To GhostMom01 and others,

You are correct and I believe the same is true with the other brands as well. I apologize for confusion. If you’ve been to my site, you saw that I am primarily in the CNP realm where the merchant, not the issuer, eats the losses.

Lucas’ statement appeared rather broad and gave the impression that merchants were never responsible. As you probably know, that’s only true in the CP world. I should have been more clear.

As to CP merchants being responsible for losses in cases like you described – you are absolutely right. There is simply no excuse for a fraudulent transaction like that to go through. Merchants, CP and CNP should be expected to do due diligence.
17
Mike Z Says:
March 5th, 2010 at 1:27 pm
I agree that a merchant should not ask for any other ID than the credit card you just gave them – that card should be ID enough. They should not be entitled to any additional information found on my driver’s license. The problem is that if you don’t give them the license when they request it, they won’t complete the sale for you which creates a bigger hassle for me than what it seems to be worth.

Also, I have noticed that there are maximum limits at gas station pumps…doesn’t this violate a rule? You can’t go in to pay for the gas with a signature based transaction either because nobody has any idea how much gas your car will take (assumption is that you are filling the tank which is why the transaction limit is a problem).
18
BSR Says:
March 7th, 2010 at 10:19 am
I routinely refuse to show ID for CC purchases. My card is signed, and I patiently explain that they should be checking card-signature against the receipt I just signed and that showing my ID is not necessary.

I have not once had the merchant refuse to complete the sale for that. A couple of cashiers have called back to the manager and seem to have been told that it was ok, and finished the transaction. No problem.

I also have noticed a correlation between the type of store and the frequency of being asked for ID. At larger, nationwide chains with (presumably) better training for cashiers I am hardly ever asked for ID. Same for high-volume stores — it slows them down too much.

It seems to happen more at smaller, local chains. I have the feeling it’s not usually policy, but some of the cashiers think they are preventing fraud by asking. Some have told me it’s for MY protection.
19
Tom Mahoney Says:
March 7th, 2010 at 10:45 am
BSR -

The point that you and others are missing is that it WOULD be for your protection if someone had stolen your card. I’m not understanding why folks don’t get that.
20
Drew Says:
March 7th, 2010 at 10:58 am
As a cardholder I am protected by VISA by following my end of the agreement, signing my card. The merchant is protected if they just follow the rules. Legally, writing “See I.D.” or only checking IDs violates your contract with VISA and if your card is stolen they are no longer obligated to cover your losses.

Secondly, with today’s technology it is very easy to quickly make a fake ID. A cashier is most likely going to know if it is real if the ID is a fake of another state. Very few merchants would recognize a fake unless it was the type they have and see every day. Like I said earlier, for years my father’s legal drivers license from New Jersey was a piece of paper with his name, address and a few desceiptive items. These types of basic liscenses are still out there and valid.

Third, statistically speaking, at any given transaction the merchant is more likely to be committing a crime. These people you are trusting to protect you are the most likely, outside of family, to steal your information.
21
Tom Mahoney Says:
March 7th, 2010 at 3:00 pm
As a cardholder you are protected but you have the hassle of dealing with it.

Have the best of both worlds. Sign the card AND write “See ID” on the back. In either case, the chance of a cashier looking at the back are slim.

Making a fake ID is, as you say, fairly simple, but it takes some time. If your card is stolen,chances are the thief is going to use it very quickly and then ditch it.

I’d love to know where you got your statistics on merchants being criminals. Please cite those stats. It’s baloney.
22
David Says:
March 19th, 2010 at 3:28 pm
No Visa card company will give you instructions what to do if you don’t want to keep your credit card anymore. And when you received a new credit card, it will only ask you to activate it such and such. But never tell you what to do if you really don’t want to accept the card.
23
Will Says:
April 1st, 2010 at 6:11 pm
When I worked at Sam’s Club, people would get very mad at me for telling them that i couldn’t accept their card that said “See ID” unless they signed it. It says right next to the box where you chose to write “See ID” that the card is invalid unless signed. So you choose to write something else there? Do you go around writing “Okay” in the “Do not write in this space” part of forms too?
24
Stupid Idiot Says:
April 4th, 2010 at 9:22 am
“… As I said above, I donâ€™t have a problem with merchants wanting to see my ID. Theyâ€™re just trying to prevent fraud and that, in my opinion, is a good thing.”

But will it be a good thing when they sell your card information to somebody, and attached to it your driver’s license with your home address, date of birth etc.?
25
Nickel Says:
April 4th, 2010 at 1:30 pm
Stupid Idiot: They don’t record the info. They just make sure it matches. I guess I’m just not paranoid enough, huh?
26
an employee Says:
July 29th, 2010 at 1:13 am
I really don’t understand why people get so angry if i ask for I.D because i can refuse a counterfeit dollar if i know it’s counterfeit. I should also be able to ask for some form of photo ID I just wish that ALL credit cards had photos of the card holder on it.

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