Visa Provisioning Service & Purchase Authorization: Know How Does It Work?

People are increasingly using electronic payments in recent times. As a result, there is a growing necessity to defend users’ sensitive banking information as they progress across offline and online payment gateways. Here, we will understand all about Visa Provisioning Service (VPS) and purchase authorization, its working process, and whether or not it is reliable for you.

Visa Provisioning Service: Popular VISA Service to Facilitate Online Transactions

Visa Provisioning Service

Visa Provisioning is a scheme of Visa financial services. It is employed to file credit card details for users at the time of purchase. It is a system that delivers a credit card number to do transactions for one-time only. It enables the merchants to organize buyers’ credit cards with no economic loss.

  • Suitable for Businesses That Require Credit Cards At Times

The system is for businesses that need to accept credit cards from time to time. They do not want their card info to get stored on a server. If payment details remain exposed, cybercriminals could access them via the merchant’s security mechanism.

  • Use Provisional Service of Visa If Necessary

Merchants can use the Provisioning Service confidently if they know that their platform may be affected. 

Visa Provisioning Service

They should only use the system if it is crucial and not because it helps them feel perfectly safe. If merchants are doubtful, they should stop using the platform until they are fully secure.

  • Ensure Merchant Systems Are Secured & Updated

It is safe for merchants to use the Provisioning Service if they can confirm that their systems are protected and updated regularly. Merchants handling heavy sums of cash or private information should bypass this option.

  • Purchase Authorization

A Purchase Authorization is permission from a credit card company. It is through a payment gateway that confirms that the purchaser has the cash to cover the transaction’s prices. It is the method of obtaining authorization from the card-issuing company.

A Few Issues in Visa Provisioning Service

Visa Provisioning Service

Now, let us check out a few issues that may occur in the Provisioning Service of Visa network:

Confidential Data is At Risk if Merchant Security System is Unsecured

The issue that may arise in the Provisioning Service is that it places confidential information under those persons who may not have a way to defend it responsibly. 

It implies even though a merchant’s network security is competent, they cannot confirm that the users’ credentials will remain unaffected via the provisioning service.

Credit Card Time Frame & Usage

Furthermore, these credit cards last for up to two years until expiration. Wherever Visa is authorized, these credit cards can work to buy stuff.

Hackers May Retrieve Private Data

Though the payment card is unrecorded on a merchant’s website, cybercriminals might access the data due to a few security breaches.

Even if a merchant has excellent security systems, they may be vulnerable to cyberattacks when utilizing the provisioning facility.

Realize the Visa Provisioning Service Charge

While using the Provisioning Service of Visa, some charges may apply. Merchants who use the Provisioning Service have to pay $0.10 for each transaction. Plus, a non-qualified discount cost of $0.017 and a merchant cost of $0.069 is applicable. As a result, a 1 percent fee is for each transaction.

Due to service charges, many companies and business holders are turning to tokenization solutions. By utilizing tokenization, companies will offer a secure and stable system for their users.

Visa Provisioning Service Working Process & Tokenization

Visa Provisioning Service

The service unlocks mobile payments on mobile phones using the near field communication (NFC) technology. 

Also, firms like internet providers, banking firms, and transit systems use this payment option. It connects the Visa payment account information and users’ cellphones.

VPS validates the customer’s data with a secret key. It transfers a secured code that activates the phone’s NFC chip. Finally, it initiates the service and updates banking details directly on the handset. This technique is known as Tokenization.

The tokenization process safeguards the user’s confidential material. It substitutes the card number with a token that the company renders. The technique involves the following steps:

  1. Firstly, enroll your VISA profile with a payments system. 
  2. Now, provide the necessary account information like your credit card number, PIN, and other relevant data.
  3. Your access provider connects with the Visa network. And demands a payment token for your newly registered profile.
  4. After that, the Visa network will send the token plea to the cardholder (your bank).
  5. Visa will substitute your existing account number with the token once the issuing bank confirms it.
  6. Finally, you will get a token for your purchases. It will be used in place of your actual credit card number whenever you buy any stuff.
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Final Words on Visa Provisioning Service

To sum up, Visa Provisioning Service is not protected. Hence, it is a big worry for all businesses that use it. Cyber attackers could attack the system and swipe your buyers’ details. So, it is tremendously damaging for your prestige being a merchant.

However, it is safer for merchants to use Tokenization. The service permits them to submit fake data instead of the purchaser’s actual card number. Thereby, it assists in stopping fraudulent transactions if there is a breach of card info.