Visa has published an update to clarify their definitions and rules for merchant wallets (digital wallets consumers use to buy goods and services from merchants)
These rules only affect you if you offer a merchant wallet (such as a store card) for customers to buy goods and services from your business only.
Digital wallets that can be used to pay across multiple businesses (such as Apple Pay and Google Pay) are not classified as merchant wallets.
If you offer a merchant wallet, Visa will classify you as a Digital Wallet Operator. Visa’s definition of that wallet will depend on how customers use it.
Scenario 1: customers use the wallet to buy goods and services from a single brand, using one Merchant Category Code (MCC)
In this scenario, you must process all transactions as a purchase.
Scenario 2: customers use the wallet to buy goods and services from multiple brands, using one MCC
If customers fund the wallet before making a purchase, you must process these transactions as a purchase.
If customers use the wallet to process “back-to-back funding” (also known as “purchase-driven load”, “live-load” or “real-time load”) to automatically transfer value connected to a specific purchase using their stored payment details, you’ll need to comply with Staged Digital Wallet Requirements.
This means that Checkout.com will need to register you as a Staged Digital Wallet merchant, and, where customers use their card to top up the wallet, you’ll need to process the transaction as AFT.
Scenario 3: customers use the wallet to buy goods and services from multiple brands, using multiple MCCs
For this scenario you’ll need to follow Staged Digital Wallet or Stored Value Digital Wallet requirements, depending on how your wallet works.
This means that Checkout.com will need to register you as a Staged Digital Wallet / Stored Value Digital Wallet merchant, and, where customers use their card to top up the wallet, you’ll need to process the transaction as AFT.
If you have any questions or need further support, please email us at [email protected] or reach out to your dedicated Customer Success Manager.
Appendix A - Visa merchant wallet definitions
Appendix B - Merchant wallet classifications and treatment