Visa Inc. · NYSE:V
Visa — Technical Presentation (2022)
32 slides from Visa's technical presentation, 2022
Slide 1: 8-Digit BINs: The Time Has Arrived. Are You Ready?
©2022 Visa. All rights reserved. Visa Confidential 8-Digit BINs: The Time Has Arrived. Are You Ready? Erynn Shryack North America Initiative Lead ©2022 Visa. All rights reserved. Visa Public
Slide 2: Notice of confidentiality
Notice of confidentiality This presentation is furnished to you solely in your capacity as a client of Visa and/or a participant in the Visa payments system. By accepting this presentation, you acknowledge that the information contained herein (the “Information”) is confidential and subject to the c
Slide 3: Agenda topics
Agenda topics 1 2 3 4 Current State Merchant Impacts PCI considerations Resources and and Planning Action Steps ©2022 Visa. All rights reserved. Visa Public 3
Slide 4: Key learnings
• The payment card industry has made changes to accommodate 8-digit BIN, while still keeping the Primary Account Number (PAN) length the same • Be aware of the implications of Visa’s 8-digit BIN program in support of this industry change Key • BIN table information should only come from reliable sou
Slide 5: Current State
Current State ©2022 Visa. All rights reserved. Visa Public 5
Slide 6: Bank Identification Number (BIN)
193950-1 09/16|Code 1234 Bank Identification Number (BIN) BIN . . Definition: . Account Range A numeric assigned by ISO to Visa, licensed by Visa to our clients and that makes up the first 6- or 8-digits of the PAN (Primary Account Number) Account Range PAN No change No change 9 digits 16 or 19 digi
Slide 7: Key Visa program elements
BIN Account Range Key Visa program • Visa is now only assigning 8-digit BINs after April 2022 elements • Issuers can set their own timeline to convert existing 6-digit BINs; pricing and programs are being used to New Industry Standard encourage adoption announced by ISO in 2017; global effective dat
Slide 8: Current status
Current status 1 Most acquirers and processors are ready to support 8-digit BINs 2 Additional development may be required for some merchants, terminal providers and other partners 3 We are seeing an increase in issuer adoption of 8-digit BINs in all regions, which increases the urgency of merchant r
Slide 9: Account Range Usage
Account Ranges include key information on program set up BIN 40120001: Consumer Credit Program from Europe BIN Activated Product ID Country Currency Account Ranges Account Range Usage Account Range 1 Visa Classic Germany EUR 2 Visa Signature France EUR Account Range 3 Visa Infinite Sweden SWE KRONA
Slide 10: Why does it matter for my business?
Why does it matter for my business? ©2022 Visa. All rights reserved. Visa Public 10
Slide 11: Merchant Impacts and Planning
Merchant Impacts and Planning ©2022 Visa. All rights reserved. Visa Public 11
Slide 12: Why Is Prompt Action Required?
Why Is Prompt Action Required? The changes required to your operations may require extended timelines and must be coordinated with your partners. Deloitte Consulting ©2022 Visa. All rights reserved. Visa Public 12
Slide 13: How can Visa support your planning?
How can Visa support your planning? 1 Where do you use the issuing BIN? 2 What challenges do you face? 3 What are your steps to readiness? Source: Acquiring & Issuing Impacts Discovery Interview Findings at Visa.com/8digit ©2022 Visa. All rights reserved. Visa Public 13
Slide 14: Potential Risks of Not Being Prepared
• Reduced efficiency and potential interruptions to processing capabilities Potential Risks of • Unnecessary declines, rejections or misrouting Not Being Prepared • Gaps in fraud management defenses • Inconsistencies in reporting • Errors in dispute handling • Increased reconciliation costs ©2022 Vi
Slide 15: Scenario 1: Risks for Lost Revenue & Inefficiencies
SCENARIO 1 Issuer A: Issuer B: Existing Eastern Europe Issuer converts New US Issuer receives a one of its 6-digit BIN into an 8-digit BIN the returned 8-digit BIN • Over 1000 Issuer B transactions are declined at a large US merchant in one week. • Issuer B is unable to explain why this is happening
Slide 16: Risks to Transaction Processing
Identified POS terminals with 46% hardcoded logic based on issuing BIN Risks to Transaction Processing Misrouted, suspended or rejected transactions Expect an impact to BIN tables during processing 58% loaded to terminal referenced via terminal management system Source: Acquiring & Issuing Impacts D
Slide 17: Risks to Compliance and Fraud processes
Client-reported use cases of issuing BIN Pre-validation of transactions against specific fraud parameters (including issuing BIN) Risks to Compliance and Fraud processes Reporting and analytics on fraudulent transaction activity at the BIN level Screening error if blocking “bad” BINs Blocks on speci
Slide 18: Risks to Merchant Services and Dispute Management
Client-reported use cases of issuing BIN Risks to Merchant Services and Dispute Issuing BIN are used for configuration Management tables, search features, reporting, reconciliations, Issuer identification for dispute resolution Errors in merchant portal and/or dispute processing Source: Acquiring &
Slide 19: Scenario 2: Risks for Lost Revenue & Inefficiencies
SCENARIO 2 Issuer A: Issuer B: Canadian Issuer converts its 6-digit Gift US Issuer receives one of the Card BIN into 8-digit format and returned 8-digit BINs for their returns 85 BINs credit program • New Cardholder tries to register their card to register a recurring monthly subscription to a Scena
Slide 20: What happens if a merchant does nothing?
What happens if a merchant does nothing? Immediate action required • Risks of negative consequences will increase as Visa advises all stakeholders to more issuers adopt 8-digit BINs conduct an internal assessment to • It will no longer be possible to rely on the first 6 identify how their processi
Slide 21: Some consequences of inaction
Some consequences of inaction Data warehousing Fraud & reporting management • Errors in data searches and reporting, including • Cannot set fraud monitoring or alerts Financial reporting, if issuing BIN field is only set up • Failure or incorrect outcome for Risk rule for 6 digits processing when 6-
Slide 22: Some consequences of inaction (Cont'd)
Some consequences of inaction (Cont’d) Merchant Point Merchant servicing Regulatory Of Sale (POS) and disputes • Erroneously accept transactions from a BIN • Unable to identify participants for loyalty • Merchant reports missing transactions for 8- blocked due to regulatory restrictions such and pro
Slide 23: Merchant readiness must include processors, partners and vendors
Merchant readiness must also include processor, partner, vendor and other entities that participate in transaction processing on behalf of the merchant. It is imperative that merchants receive confirmation of 8-digit BIN readiness from all connected parties. ©2022 Visa. All rights reserved. Visa Publ
Slide 24: If nothing else…
If nothing else… BIN table information should only come from reliable sources such as your acquirer or registered entities that receive information directly from Visa (i.e., VBASS service) ©2022 Visa. All rights reserved. Visa Public 24
Slide 25: PCI considerations
PCI considerations ©2022 Visa. All rights reserved. Visa Public 25
Slide 26: PCI DSS Unchanged and Changed
Unchanged Changed PCI DSS Data Presented on Data at Rest Screen and Reports (Truncation and Encryption) (Masking) Any changes to how a client is protecting their data should be A documented business • Now allows exposure of up reviewed by a Qualified justification for seeing more to, but no more t
Slide 27: Resources and Action Steps
Resources and Action Steps ©2022 Visa. All rights reserved. Visa Public 27
Slide 28: All merchants must be ready as 8-digit BIN adoption is growing
All merchants must be ready as 8-digit BIN adoption is growing Potential impacts may occur after April 2023 and readiness is urgent 1 2 3 Actively engaged Analysis underway Implementation Ready for 8-digit BINs • Conduct impact assessment • Establish cross functional team • Approve budget and • Comp
Slide 29: How is Visa helping you prepare?
How is Visa helping you prepare? Quick Start Guide Webinars Discovery Interview Findings Checklist Numerics Page on FAQs Visa.com/8digitbin ©2022 Visa. All rights reserved. Visa Public 29
Slide 30: Key takeaways
• The payment card industry has made changes to accommodate 8-digit BIN, while still keeping the Primary Account Number (PAN) the same length • Be aware of the implications of Visa’s 8-digit BIN program in support of this industry change • BIN table information should only come from reliable sources
Slide 31: How to contact us and additional resources
NumericsSupport@visa.com How to contact us and NumericsSupportEU@visa.com additional resources Reach out to your Acquirer, Processor or Visa representative Numerics initiative page at Visa.com/8digitBIN Note: Numerics Support Mailbox is available for a limited time only and expires after 9/30/23 ©20
Slide 32: ©2022 Visa. All rights reserved. Visa Confidential
©2022 Visa. All rights reserved. Visa Confidential ©2022 Visa. All rights reserved. Visa Public