What is the new VARS Assessment of Merchant Credit Worthiness?
What is the new VARS Assessment of Merchant Credit Worthiness?
GARS retirement presents VARS: Archetypes and Risk Domains
By combining Archetypes and Risk Domains, Visa Acceptance Risk Standards offer a more granular and proactive approach to safeguarding payment ecosystems. This new framework not only empowers acquirers to tackle emerging threats with precision, but also fosters greater trust and transparency among consumers, merchants, and the broader financial community. The result is a streamlined, future-ready standard that underpins resilience in a rapidly evolving payments landscape.
Navigating the Evolving Payments Ecosystem: A Strategic Imperative for Acquirers and TPAs
The payments landscape is undergoing a period of rapid transformation, characterized by the emergence of agile, technology-driven players and the increasing sophistication of consumer and merchant demands. This dynamic necessitates a strategic re-evaluation for both acquirers and Third-Party Agents (TPAs) to maintain competitiveness and drive sustainable growth.
From GARS to VARS: An Overview of the New Standards
The payment industry’s rapid growth has ushered in new complexities, especially around risk management. In response to evolving threats, in October 2024, Visa retired its Global Acquirer Risk Standard (known as GARS) and replaced it with the Visa Acceptance Risk Standards (now known as VARS). While both sets of guidelines aim to maintain trust and security, the changes reflect how Visa is adapting to new market conditions, regulatory demands, and expanding digital transactions. This article explores why Visa implemented this transition, what the new standards entail, and how they will affect acquirers, merchants, and the broader payment ecosystem.
Understanding Fourth-Party Risk in the Payments Industry
In the rapidly evolving payments industry, fourth-party risk management is not just a regulatory obligation but a strategic imperative. Companies must proactively identify and mitigate risks emanating from their extended network of vendors to protect their operations, customers, and reputation. By implementing robust risk management strategies, businesses can navigate the complexities of the supply chain and maintain a competitive edge in the market.
The Future of Payment Experiences: How Context-Aware Solutions Are Reshaping the Way We Pay
Over the past decade, the payments industry has come a long way—shifting from swiping plastic cards to tapping mobile devices and, more recently, automating transactions entirely. But while these innovations are transformative, they only scratch the surface of the frictionless future we’re racing toward. Context-aware payment experiences, powered by artificial intelligence and intuitive data analytics, are set to reshape how we transact daily. At RPY Innovations, we’ve been at the forefront of this shift, and I’d like to share my perspective on where we’re headed and why it’s so exciting.
Key Terminology in the Payment Facilitation Model
Understanding the terminology within the Payment Facilitation model is essential for anyone involved in the payment processing ecosystem. These terms form the foundation of how payments are processed, how risks are managed, and how compliance is maintained. As the payment industry continues to evolve, staying informed about these concepts will enable businesses to navigate the complexities of payment processing effectively.
Why Consumers Prefer Tap-to-Pay Technology at the Point of Sale
Tap-to-pay technology represents more than just a speedier payment method. It’s an experience that aligns seamlessly with how consumers live, shop, and think about their relationship with brands. Today’s customers crave efficient, secure, and meaningful interactions, and tap-to-pay delivers on all three fronts. As a result, retailers and service providers that embrace contactless payments don’t merely keep pace with a trend—they position themselves as thought leaders in the future of commerce, ready to adapt, innovate, and delight their customers at every touchpoint.
From GARS to VARS: Visa’s new Regulatory Framework
The payments ecosystem has seen remarkable growth over recent years, driving the growth of new players, technology, and risks in an increasingly complex landscape. Throughout this growth, effective risk management frameworks are paramount. Visa’s recent move from the Global Acquirer Risk Standards (GARS) to the Visa Acceptance Risk Standards (VARS) signals a continued focus on addressing contemporary risks and ensuring the resilience of the payments system.
With changes that impact all parties from merchant to acquirer, VARS represents a notable evolution in approach from Visa.
The Difference Between Legal Tender and Fiat Currency
In the realm of economics and finance, the terms legal tender and fiat currency are often mentioned, sometimes interchangeably. However, they represent distinct concepts within a country's monetary system. This article explores the differences between legal tender and fiat currency, shedding light on their unique roles in modern economies.