The Preauthorized Payment Cancellation Service (PPCS) is a cost- effective way for issuers to handle customers' stop payment requests for preauthorized electronic funds transfers, such as automatic bill payments and installment payments. Using the service, issuers can inform acquirers and their merchants, via an authorization response, that a cardholder has requested a stop payment for either one specific payment or all subsequent payments:

• Stop Payment Order. Lets a consumer stop a specific preauthorized payment
• Revocation of Authorization Order. Enables a consumer to stop all future preauthorized payments from a particular merchant
• Revocation of All Authorization Orders. Lets an Issuer cover all automatic bill payment revocations for multiple merchants with one PPCS order (used for closed accounts)

What It Does

• Enables Visa check card, credit, and commercial issuers to submit stop payment orders and revocation of authorization orders to VisaNet®
• Permits VisaNet to decline an authorization request to the Acquirer on behalf of the Issuer with a descriptive response code when a stop payment order or revocation of authorization order is on file with VisaNet
• Permits VisaNet to automatically return a clearing transaction to the Acquirer on behalf of the Issuer with a descriptive return reason code when a stop payment order or revocation of authorization order is on file with VisaNet
• Gives the Issuer a descriptive advice whenever an authorization is declined or a clearing transaction is returned

Benefits to Issuer

• Helps Visa check card issuers meet Regulation E requirements when consumers exercise their right to stop preauthorized payments from their accounts by notifying the Issuer
• Eliminates the need for issuers to charge back preauthorized payments because the stop payment orders and revocation of authorization orders are on file
• Improves the cardholder experience
• Reduces automatic bill payment operational costs
• Reduces authorization declines for preauthorized payments
• Facilitates growth in the bill payment category

Benefits to Acquirer

• Provides acquirers and their merchants with descriptive authorization response codes and return reason codes
• Reduces chargebacks and authorization declines for preauthorized payments when a stop payment order is on file
• Ensures consistent handling of stop payment orders and revocation of authorization orders
• Facilitates growth in the bill payment category

Benefit to Consumer

• PPCS gives cardholders a way to stop payment of preauthorized funds transfers from their accounts after they have notified the merchant.

Benefits to Merchant

• Lets merchants know that a consumer has stopped payment or revoked authorization of a preauthorized funds transfer
• Reduces chargebacks for preauthorized payments when a stop payment order is on file
• Enables consistent handling of stop payment orders

Target Audience

Participation is mandatory for acquirers on the BASE I/BASE II and Single Message System (SMS) that submit preauthorized transactions destined to U.S. issuers. The service is optional for issuers.

Operational Considerations

It is important to note that consumers are not released from their obligation to pay for goods and services purchased from merchants.

Additional Resources

April 2003 VisaNet Business Enhancements Technical Letter, Update Bulletins, and Member Implementation Guide and October 2004 VisaNet Business Enhancements Technical Letter, Update Bulletins, and Member Implementation Guide.

To obtain soft copies of these resources, go to Visa Online.

For More Information

For more information, please call your Visa Account Executive or Contact Us.