In this new era of recurring technology development, people are beginning to perform digital transactions and leaving out the traditional methods of performing transactions. Visa has been known as an ancestor of licensed credit cards for general use and with Visa’s commitment to providing the best technology and services to its customers, Visa developed the Visa Provisioning Service. Now what is Visa Provisioning Service and how is it used for mobile payments?
The Visa Provisioning Service is a machine-to-machine service that uses the Visa network to complete mobile payment processes. Its services include the Visa Token Service and its functionality includes enabling single, secure payment authorization for cardless payment transactions.
Visa designed the Visa Provisioning Service with the aim to keep up with any changes in consumer behavior and technological developments. In this article, I’ll extensively explain Visa Provisioning Services and how to use them for mobile payments.
What Is Visa Provisioning Service?
As earlier discussed, Visa’s major aim with Visa Provisioning Service is to create flexibility for Visa’s customers. Mobile payments are made easy with Visa Provisioning Services as this service is built on the Visa network. Visa Provisioning Services was built by Visa with the aim of the service evolving as technology advancement occurs.
In the provisioning ecosystem, merchants use a tokenized Visa account to help them beat traditional barriers of accepting payments such as merchant acquiring costs, fraud liability protection, and most importantly, the requirement for customer credit cards at points of purchase.
The Visa token service’s functionality includes enabling a single, secure payment authorization for cardless payment transactions using an account on behalf of mobile devices and mobile network operators in apps or browsers. Banking networks also use Visa Provisioning Services for convenience purposes.
Amongst the Advantages of using Visa Provisioning Services, it’s known that due to Visa’s availability in over 200 countries, Visa Provisioning Service offers more security than other payment methods, and can be integrated with any kind of individual business.
Other benefits of Visa Provisioning Service include its easy-to-use system. The provisioning service can be used for online and mobile transactions, and also offers a top-level security system to merchants and consumers. Visa sourcing service’s security is non-compromisable as it’s integrated with the same security and encryption as other Visa services.
Visa Provisioning Service can be used for ticket purchase authorization, and as a solution provider for merchants who require more control over their data, or require advanced profile management while still using Visa’s service.
In this system, visas can be customized with several levels of detail depending on the type of merchant you are- As financial organizations that needs detailed credit card histories from multiple providers or retailers that only require basic customer information.
Moreso, purchase authorization Visa Provisioning Service offers advantages that includes helping to reduce costs by reducing fraud rates (most importantly when combined with EMV chip card technology) and also help businesses focus on increasing sales instead of processing transactions, side by side with better customer retention.
As much as Visa Provisioning Services have great advantages, it also has some drawbacks while using Visa issuing services as a consumer. As a consumer you cannot make purchases on mobile apps or websites and, also due to the fact that the Visa provision is outsourced, additional costs could be charged.
Another disadvantage for consumers that use Visa Provisioning Service is that they need to forgo their privacy on their Visa account and are tracked by the company using the Visa service. A credit card can be used for automatic payments however, sometimes recurring credit card payments aren’t canceled.
Other drawbacks of consumer Visa service include unauthorized purchases, increased risk of identity theft, and credit card fraud.
Transactions could be declined due to several reasons. These reasons may include insufficient funds or incorrect account information, but the most popular reason transactions get declined is due to authorization. Giving an example, authorization of the TD bank purchase happens when purchases are made with a debit card and ATM with insufficient balance in the bank account.
Due to this, some consumers would rather use non-NFC payments.
Apart from consumer disadvantages, Visa Provisioning Services also has some disadvantages for businesses.
Businesses that use Visa Provisioning Services for actions like relinquishing some control over transactions, making it difficult to switch processing providers as the company, will have to deactivate the Visa Provisioning Services before purchasing a new one. These businesses may also be charged additional fees if their credit cards expire or if they choose not to renew them. This is dependent on the type of provider they choose to use.
There can also be conflicting records between financial institutions’ records and those of third-party companies, which can potentially lead to a jump in fraud cases.
Visa Provisioning Services are maintained by individuals, consumers, or organizations- mainly application developers.
To maintain individual Visa Provisioning Services, individual consumers can visit their visa.com or their provisioning account. This can be done by downloading the SMS service or the Visa Token Service on a device or linking the service to their mobile number.
Organizations have different processes that load consumers into their systems. Most organizations manually load consumers from spreadsheets downloaded through API requests.
Visa Provisioning Services possess some similarities when compared to other mobile payment services such as Google Wallet and Softcard. The similarity is that Google Wallet and Softcard use Near Field Communication (NFC) technology.
The major function that distinguishes Softcard from Visa provisioning services is that Softcard is an enclosed network. This means Softcard only accepts payments from banks that are also members of the Softcard association. While Visa Provisioning Services, can be used with any type of card and do not necessarily require to be a Visa credit card or debit card.
With provisioned Visa checking account, an issuing bank can choose to make its cards compatible as long as they meet laid out requirements. With this, customers can have access to in-store contactless transactions using mobile devices without the need for proprietary connection hardware such as NFC terminals.
How To Use Visa Provisioning Service For Mobile Payments?
To use Visa Provisioning Services for mobile payments, the customer’s device must transmit data wirelessly through Bluetooth or near-field communication technology to purchase something without using their credit cards in a traditional machine to checkout.
To complete the process, the consumer must have an NFC chip as part of the smartphone’s hardware. They might not be able to use this service if their phone is an older one as NFC technology is generally the last resort for declined debit card transactions.
If the customer’s phone has the NFC chip as part of their phone’s hardware, the consumer only needs to touch an eligible device on the NFC terminal. The NFC terminal is mostly in a store or any other location and then they use their fingerprint, password, or PIN when prompted by the e-money reader.
How To Enroll For Visa Provisioning Services
Consumers will need to download an application on their phone and then make a request to their financial institution to activate the mobile payment service on their devices. On the other hand, the Visa Provisioning Services authenticated the user account using a secure passcode to exchange security “keys” to unlock the NFC chip in the phone, activate the service, and continue to download the payment account information locally to your device.
This method is otherwise known as tokenization. It replaced the user’s account number with a token generated by the company to protect the user’s sensitive information. Here’s a breakdown of the entire process:
- Enroll in a Visa account with a payment service. After this, input all relevant account information including your account number, security code, and any other relevant information.
- The service provider will proceed to contact Visa and request a payment token for your registered account.
- After the communication between the service provider and visa, Visa will share the token request with your bank.
- Once your bank has approved the request, Visa replaces your primary account number with the token.
- The token gets assigned to your transactions and gets shared every time you make a payment, in place of your actual account number.
How To Complete A Transaction Using The Visa Provisioning Services
Once it has created authorization for payment, you should:
- Input all required account information using your phone keypad. This information may include- card details, zip code, and so on.
- If an iPhone is to be used to complete the transaction, select the Apple Pay icon at the bottom of the screen.
- Selecting the Apple Pay option will open instructions and prompt you to place a finger on your Touch ID or otherwise use your Face ID to complete the process.
- Be patient for some seconds as the transaction completes after verifying your biometric security system.
Who Uses Visa Provisioning Service?
Most businesses in the United States use Visa Provisioning Service for mobile transactions due to its benefits.
These companies use tokenization and provisioning services for purchases. One of the popular companies that use the Visa Provisioning Service is Apple Pay, with the Apple Pay Visa Provisioning Service. Some companies see benefits in the company’s overall customer loyalty and security when they use tokenization.
The service fee for issuing visas is seen by some consumers on their bills and immediately springs up a concern that fraudulent purchases have been made. This notation on their accounts is completely normal to see on their account statements as they are VPS charges.
Businesses see the potential mobile payment can bring to their business in the future of business transactions hence their integration of Visa Provisioning Services with their payment systems. They are rapidly embracing new technologies and are leveraging Visa delivery services more than ever. Although some companies are reluctant with the integration, they have the choice to use non-NFC financial or mobile transaction methods.
Visa Provisioning Services are used by many transit organizations, network providers, banks, etc.
Below is a list of some companies that use Visa Provisioning Service:
- Citibank Mobile Banking Apps
- Macy’s Inc
- Google (US Google Pay)
- Sony PlayStation store
- Pioneer Services corporation
- Dell financial services LLC
- The Home Depot Credit Card Company LLC.
- Chase Bank USA
Is Visa Provisioning Service Safe?
Visa Provisioning Services is secure because it facilitates transactions between merchants accepting cardless payment and customers, without requiring any information except an email address at the time of registration. The provisioning service also has a number of security measures such as biometric authentication, PIN authentication, and tokenized data encryption while transmitting data through contactless NFC endpoints and wireless networks like wi-fi.
Although the Visa technology has its downsides, above all, it is secure and works effectively through a third-party service provider (TPSP). This third-party service provider is responsible for storing all customer data securely.
What Is Visa Provisioning Service Charge?
It’s understandable to be concerned when you see the Visa Provisioning Service charge pop up on your bank account even though it’s a $0 charge. It can be quite concerning to come across a charge you don’t recognize but here you have it. This service fee is otherwise known as the Visa Provisioning Service charge.
The most likely time you’ll see this fee is as a sort of preauthorization from a merchant. The merchants do this as an act of verifying whether your account is valid or not. There are tendencies you’ll see this charge for a wide variety of situations, not just when you’re doing some online shopping.
A number of direct deposit companies will use a Visa Provisioning Service charge to validate your account before depositing your paycheck. The same process can be true if you write a check that has recently been cashed.
If you also add a card to your mobile wallet, your bank account may also be tested with this charge. An example is when you add a debit card to your Apple Pay account which often results in this as Apple Paychecks the active status of your bank account.
Many online e-commerce businesses are now implementing the tokenization process instead of processing the payment with your account information.