On April 13, 2024, Visa updated its authorization framework. They’ve modernized their structure for authorization validity and clearing timeframes and introduced new pricing.

• Authorization validity timeframes define how much time you have to complete the transaction after the issuer approves an authorization request
• Clearing timeframes define the maximum time acquirers have to process completed transactions after the transaction date

Visa has combined both above timeframes and created a new set of standard timeframes. This creates a new, single authorization to clearing timeframe.

In most cases, this is now ten calendar days for ecommerce transactions and five calendar days for Merchant Initiated Transactions. However, Visa will allow up to 30 days for ecommerce transactions if you use an estimated authorization and offer the following services:

• Aircraft rentals
• Bicycle rentals, including electric scooters
• Boat rentals
• Clothing and costume rentals
• DVD and video rentals
• Equipment and tool rentals
• Furniture rentals
• Motorhome rentals
• Motorcycle rentals
• Trailer parks and campgrounds

Checkout.com has already updated its card processing framework to account for the new authorization processing timeframes.

Dispute rule updates

Visa has updated their dispute rules to combine no authorization and late presentment dispute conditions. The no authorization dispute condition will now cover the following scenarios:

• An authorization was required, but not obtained
• An authorization was obtained, but the transaction was processed for a higher amount
• An authorization was obtained, but the transaction was not processed in time
• An authorization was not required, and the transaction was not processed in time

If you have any questions about these changes, please email us at [email protected] or reach out to your dedicated Account Manager.