Cost-Effective Handling of Stop Payments for Preauthorized Funds Transfers

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.

What Preauthorized Payment Cancellation Service Does

Key Features of Preauthorized Payment Cancellation Service

Through the features fully integrated into the VROL for DPS service offering, issuers can inform acquirers and their merchants of any of the following:

Lets a consumer stop a specific preauthorized payment.
Enables a consumer to stop all future preauthorized payments from a particular merchant.
Lets an Issuer cover all automatic bill payment revocations for multiple merchants with one Preauthorized Payment Cancellation Service order (used for closed accounts).

How You and Your Customers Benefit

Offers a Wealth of Benefits to Issuers

  • May help Visa debit card issuers meet regulatory 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 Acquirers, Too

  • 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.
  • Encourages consistent handling of stop payment orders and revocation of authorization orders.
  • Facilitates growth in the bill payment category.

Gives Cardholders Convenience and Control

Preauthorized Payment Cancellation Service gives cardholders a way to stop payment of preauthorized funds transfers from their accounts after they have notified the merchant—giving them more control and convenience. Visa DPS provides an integrated solution within an issuer's back-office solution (VROL for DPS) to allow them to initiate stop payment requests that can be utilized by merchants.

Keeps Merchants Informed While Reducing Chargebacks

Preauthorized Payment Cancellation Service lets merchants know that a consumer has stopped payment or revoked authorization of a preauthorized funds transfer. This communication reduces chargebacks for preauthorized payments when a stop payment order is on file and also enables consistent handling of stop payment orders.


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