How Does Visa Prepaid Preauthorized Processing Work?


Quick Answer

Visa prepaid processing provides Visa authorization by developing customizable processes that a financial institution’s host system can use to define and control its transactions, reports Visa. The Visa prepaid processing system also takes into consideration transaction and network processing, risk management, portfolio optimization, card management and cardholder support.

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The authorization process is accessible via Visa and ATM cards, over the Internet and by telephone, according to Visa. This authorization process also comes with high-security features and provides point-of-sale transactions. The information of a typical Visa or ATM card user is stored in an Authorization Processor, or AP, system file, which serves as the platform for the authorization functionality. Other advanced authorization file storage types include Processor Interface, or PI, negative files, exception files and positive files with account balances.

The authorization processing also provides fraud protection services, verification procedures, real-time transaction processing and card activation services, according to Visa. In addition, Visa processing uses Cardholder Verification Value programs to protect and reduce fraud.

These programs are highly advanced to accommodate dynamic, integrated circuits, and address-related and EMV security measures, claims Visa. These measures use a neural network technology that checks for fraud activities using user-identified relationships and patterns. The technology uses these relationships and patterns to develop operational and statistical reports used in fraud scoring.

In addition, Visa assigns each business owner or cardholder a single-point connection, which enables him to compile all his transactions in an integrated platform, states Visa.

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