Agent Registration. Program Guidelines. (For use in Asia Pacific, Central Europe, Middle East and Africa)

Transcription

1 (For use in Asia Pacific, Central Europe, Middle East and Africa) January 2012

2 Contents 1 INTRODUCTION BACKGROUND PURPOSE OF DOCUMENT WHO NEEDS TO BE REGISTERED? WHY IS IT NECESSARY TO REGISTER THE AGENT? REGISTRATION PROCESS REGISTRATION PROCESS WHEN TO REGISTER HOW TO ACCESS THE VMM SYSTEM REGISTRATION FEES REGISTRATION NON-COMPLIANCE OTHER COMPLIANCE REQUIREMENTS VISA PROGRAM COMPLIANCE FREQUENTLY ASKED QUESTIONS REFERENCES AGENT WEBSITE THIRD PARTY COMPLIANCE REQUIREMENTS OTHER PROGRAM LINKS CONTACT GLOSSARY... 20

3 1 Introduction 1.1 Background Agents can be an effective resource for Visa clients to use when managing their acquiring and issuing programs. The Agent Registration Program is a Visa-mandated program enacted to ensure that Visa clients are in compliance with Visa Inc. Operating Regulations ( VIOR ) and policies regarding their use of Agents. Visa clients are required to perform due diligence reviews to ensure that they understand the Agent s business model, financial conditions, background and Payment Card Industry Data Security Standard (PCI DSS) compliance status (where applicable). Agent registration is required for all entities that provide Visa payment related services, directly or indirectly, to a Visa client (or on behalf of their merchants). January

4 1.2 Purpose of Document This document explains the Agent registration requirements for Visa clients and their agents. Visa s Agent registration program is intended to help the clients and Agents: Understand their accountabilities and responsibilities to the Visa payment system; Ensure their compliance with the Visa International Operating Regulations (VIOR) and regional operating regulation. These guidelines for Agent registration should serve as a reference for Visa clients and Agents when outsourcing Visa payment related services to Agents within and outside the Asia Pacific region. January

5 1.3 Who needs to be registered? Generally, an agent is an entity engaged to provide Visa paymentrelated services, directly or indirectly, to a Visa client (or on behalf of their merchants). An Agent can be a VisaNet Processor (VNP), Third Party, or both. A VisaNet Processor (VNP) is a Visa client or Visa approved non- Visa client that is directly connected to VisaNet and provides Authorization, Clearing, Settlement, or payment-related processing services for merchants or other Visa clients. A Third Party Agent (TPA) is an entity, not defined as a VisaNet Processor, that provides payment related services, directly or indirectly, to a Visa client and/or stores, transmits, or processes cardholder data. The different types of TPAs are: Independent Sales Organization (ISO) Merchant or cardholder solicitation activities and/or customer service Prepaid program solicitation activities and/or customer service Deploying and/or servicing ATMs High Risk Merchant solicitation, sales, customer service, merchant transaction solicitation and/or customer training for the following Merchant Category Codes (MCC): 5962, 5966, 5967, 7995, 5912, 5122 Encryption Support Organization (ESO) Deploys ATM, POS or kiosk PIN acceptance devices that process and accept cardholder PINs Manages encryption keys Third Party Servicers (TPS) Storing, processing or transmitting Visa account numbers on behalf of Visa clients Merchant Servicers (MS) Storing, processing or transmitting Visa account numbers on behalf of Visa clients acquired merchants January

6 Corporate Franchise Servicers (CFS) A CFS owns or operates a centralized or hosted network environment used by franchisees that can affect the franchisee s cardholder data environment if accessed by unauthorized parties. In some cases CFS entities also provide card payment processing services to franchisees through these network environments. Payment Service Providers (PSP) Contracting with Visa client to provide payment services to sponsored merchants. The term PSP replaces the old terminology IPSP which now includes all commerce type aggregation, including face-to-face in addition to ecommerce merchant aggregation. High Risk IPSPs (HRIPSP) Providing services to High Risk Internet Merchants (MCCs 5962, 5966, 5967, 7995, 5912, 5122) and stores, processes or transmits cardholder data and has a direct contract with the client Distribution Channel Vendors (DCV) Packaging, storing and shipping of non-personalized Visa products (e.g. warehouses, wholesalers, logistics companies) Instant Card Personalization Issuance Agent (ICPIA) Performs instant card personalization and issuance for the issuer that is generally a retailer or kiosk location Dynamic Currency Conversion (DCC) Providing currency conversion services to sponsored merchants at checkout 3-D Secure Access Control Services (ACS) Providing software protocol that enables secure processing of Verified by Visa transactions over the internet and other networks January

7 A third party does not include: Co branding partners Vendors listed on the list of Visa Approved Card Vendors (available from Visa Online) Exemption: A Third Party is exempted from the registration requirement and any associated fees if it provides services only on behalf of its affiliates (includes parents and subsidiaries) and those affiliates are Visa clients that own and control at least 25 percent of the third party agent. January

8 1.4 Why is it necessary to register the agent? Compliance with VIOR Under the Visa International Operating Regulations (VIOR), the Visa client has an obligation to register Agents with Visa. Agent Relationship The Agent registration database provides Visa and Visa clients with records of Agent relationships. This will help ensure that any obligations and liabilities as required by the VIOR relating to activities performed by the agents are recognized and are clearly associated to a Visa client. Risk Controls and Brand Protection It is the client s responsibility and liability to monitor the practices of its Agents. Visa clients are responsible that their Agents comply with the relevant standards and requirements, as specified in the VIOR and in the Third Party Agent Due Diligence Risk Standards (a copy can be downloaded from the Agent website). This reduces the risk to Visa, Visa clients, and Visa cardholders from brand damage and financial losses due to Agent compromises, operational errors, contractual issues, or other non-compliance with VIOR. January

9 2 Registration Process 2.1 Registration Process A Visa client using an Agent must: Step 1: Complete due diligence of the VisaNet Processor or Third Party Step 2: Register the Agent via the Visa Membership Management (VMM) system, a web-based workflow tool, which will replace the paper-based agent registration process, including the Exhibit 5E form Visa will dispatch a confirmation letter via to the client upon completion of the registration. Visa s acknowledgement of the registration does not imply that Visa approves or endorses the relationship with the Agent, or that the Agent complies with Visa requirements. 2.2 When to register BEFORE: Visa clients are required to properly register the Agent with Visa before the entity provides Visa-related services for the client. AFTER: Visa clients are required to notify Visa when: Designating additional services for the Agent Terminating the contract with the Agent Changing the status of the Agent, e.g. Change of Ownership and Name of entity (due to acquisition, merger, etc.) Change of Address (due to relocation, addition or closure of additional site within the same country) Change of Visa-related services Visa clients are required to notify Visa of any change of status within 5 business days of the change.

10 2.3 How to access the VMM system Visa client must first be enrolled with a Visa Online (VOL) login ID Click one of the following links for your regional VOL: o o Asia Pacific CEMEA You will need to register as a user of VMM as a Submitter or an Officer: o Submitter an employee of the institution that generally is not an Officer. A Submitter is granted access in the system, to create (but not approve) cases in the system. The Submitter submits the case to the Officer for approval before it is forwarded to Visa. o Officer an employee of the institution who is granted access in the system, to submit and approve changes, additions, and terminations. Generally, the Officer is the one who will forward the case to Visa. Every institution must designate at least one Officer. The Submitter role is not compulsory. January

11 3 Registration Fees There is no Agent registration fee for Visa clients in Asia Pacific, Central Europe, Middle East and Africa, but, Visa reserves the right in future to impose registration fees. January

12 4 Registration Non- Compliance A Visa client may be subject to fines starting at US$10,000 for the first violation in the following situations: Using a Third Party Agent or VisaNet Processor that has not been registered Using a Third Party Agent or VisaNet Processor that fails to comply with the VIOR. The schedule of fines is specified in the VIOR. January

13 5 Other Compliance Requirements 5.1 Visa Program Compliance Depending on the Visa payment related services the Agent provides, Visa may require the Agent to comply with one or more of Visa s compliance programs. The table below outlines the applicable Visa program and compliance standards per payment related service. The compliance standards can be downloaded from Payment Related Service Process Verified by Visa passwords Any Agent that that stores, processes and/or transmits: - Visa Account Numbers - CVV, CVV2, icvv2 - Other cardholder data Processes PINs for Visa Transactions Instant Card Issuance personalization Warehousing, packaging, distribution of prepaid cards (Distribution Channel Vendors) Visa Program Compliance Access Control Server (ACS) Account Information Security Program (AIS) PIN Security Program Instant Card Issuance Program (ICPIA) Approved Card Vendor Program (optional) 1 Applicable Security Standards PCI Data Security Standards 3-D Secure Security Requirements - Enrollment and Access Control Servers PCI Data Security Standards PCI PIN Security Standards Visa Global Instant Card Personalization Issuance Security Standards Visa Global Physical Security Validation Requirements for Data Preparation, Encryption Support and Fulfillment Card Vendors After registration, a Visa program manager will contact the Visa client to discuss compliance validation of the Agent. The Visa client is expected to complete the necessary due diligence of the Agent to ensure the Agent complies with the VIOR and the applicable security standards prior to Agent registration with Visa. 1 It is up to the Visa client and the Agent if they want the Agent to be enrolled and reviewed annually via the Visa Approved Card Vendor Program. Card Vendor Program participation is not mandatory. January

14 6 Frequently Asked Questions Q: What is the Agent Registration Program? A: The Agent Registration Program is a Visa-mandated program enacted to ensure that Visa clients are in compliance with Visa International Operating Regulations ( Visa Inc. rules ) and policies regarding their use of Agents. Q: What is a Third Party Agent? A: A Third Party Agent (also referred to as TPA ) is an entity, not directly connected to VisaNet, that provides payment-related services, directly or indirectly, to a Visa client (or their merchants) and/or stores, processes or transmits Visa account numbers. TPAs perform multiple functions on the issuing and acquiring side of a Visa client s business. Each function performed by the TPA must be registered by each Visa client that is utilizing those services. TPA functions that require registration are listed under item 1.3 of the Agent Registration Guidelines. Depending on the function the TPA performs, the TPA may be required to be approved under one or many of Visa s compliance programs. Visa clients will be notified by the individual program owner for further follow-up. Q: Why do I need to register the Agent? A: Visa wants to ensure that clients attest to having completed the required due diligence reviews, and that they are engaged with the Agent in a manner that is compliant with the VIOR. Q: Who needs to be registered? A: Agent registration is required for all entities performing solicitation activities and / or storing, processing or transmitting Visa account numbers for Visa clients (or on behalf of their merchants). January

15 Clients must register all Agents 2 regardless of whether the Agent has registered directly with Visa via the Visa Registry of Service Provider program. Visa client may be assessed a fine per Agent for not registering an Agent. Q: Who can register Agents? A: Only Visa clients can register Agents (including any Agents their merchants are using). Q: How does a Visa client register an Agent? A: Effective January 2012, Visa clients can register their Agents via the Visa Membership Management (VMM) system, a webbased workflow tool, which will replace the current paperbased agent registration process, including the Exhibit 5E form. Q: How do I access VMM? A: 1. You must first be enrolled with a Visa Online (VOL) login ID. 2. Click one of the following links for your regional VOL: Asia Pacific CEMEA 3. You will need to register as a user of VMM as a Submitter or an Officer: Submitter an employee of the institution that generally is not an Officer. A Submitter is granted access in the system, to create (but not approve) cases in the system. The Submitter submits the case to the Officer for approval before it is forwarded to Visa. Officer an employee of the institution who is granted access in the system, to submit and approve changes, additions, and terminations. Generally, the Officer is the one who will forward the case to Visa. Every institution must designate at least one Officer. The Submitter role is not compulsory. 2 An Agent is exempted from the registration requirements and any associated fees if it provides services only on behalf of its affiliates (includes parents and subsidiaries) and those affiliates are Visa client that own and control at least 25 percent of the third party agent. January

16 Q: Can I continue to use the current paper-based registration process, including the Exhibit 5E form? A: The VMM rollout will be implemented in six phases. Beginning on the effective date 3 for each country, clients will be required to register Agents using the online system. Registrations filed using the Exhibit 5E form, following a country s effective date, will be rejected, and clients will need to resubmit their registration using VMM. Q: How do I know my registration is accepted? A: Upon completion of the registration, a confirmation letter will arrive via to the Officer of the institution. Q: Can Agents register directly with Visa? A: Yes but this is a separate program to the Agent Registration program. In Asia Pacific an Agent can register directly with Visa via the Visa Registry of Service Providers program (VRSP). The Registry is a listing of service providers that provide payment related services to Visa client banks and the merchants. It serves as a source of reference for Visa client banks and merchants when selecting service providers for outsourcing Visa payment related services. For detailed information on the VRSP Program, please visit Note, clients must register all Agents regardless of whether the Agent has registered directly with Visa via the VRSP program. Q: What is the Visa client s responsibility in relation to Agents? A: Visa clients are responsible for their Agents; therefore, a Visa client must perform its own due diligence and weigh the operational and financial risks of utilizing the Agent. Visa clients are responsible for ensuring that their Agents comply with PCI DSS (where applicable) and Visa International Operating Regulations. Visa clients may be 3 Please refer to Visa Business News dated 1 December 2011 on Visa to Launch Online Agent Registration System for the Rollout Timeline. January

17 subject to fines and penalties for any Agent found to be out of compliance with the PCI DSS or Visa International Operating Regulations. Q: Is there a fee for Visa clients to register Agents? A: Currently, there are no fees applicable to Visa clients to register an Agent in Asia Pacific, Central Europe, Middle East and Africa, but Visa reserves the right in future to impose registration fees. Q: Prior to registering an Agent, what due diligence must a Visa client perform? A: Visa provides a minimum due diligence standard that all Visa clients must perform prior to registering an Agent. Visa s minimum standard includes basic background, financial and operational reviews. However, each Visa client is encouraged to increase the scope of review based on the Agent business type, services performed, relative program risk, Visa account data held or processed and the individual Visa client s internal risk appetite and requirements. Q: Can a Visa client register an Agent before the Agent validates PCI DSS compliance? A: Yes, if the Visa client registers an Agent prior to the Agent validating compliance, the Agent must be contracted with an approved Qualified Security Assessor (QSA), or commit to completing a Self Assessment Questionnaire (SAQ) and have an expected date of compliance. A list of QSAs can be found at Q: What does an Agent have to do to get registered? A: To start the registration process, Agents should contact their contracted Visa client. If the Agent has a contract with a Visa client s merchant, the Agent can pursue two avenues: 1) they can directly contact the merchant s Visa client (usually identified by asking the merchant for their acquiring/merchant bank contact information); or 2) Visa can facilitate the registration by contacting the merchant s Visa client on behalf of the Agent. January

18 Also, the Agent has the option to enroll in Visa s Registry of Service Providers (VRSP) Program. The Registry is a listing of service providers that provide payment related services to Visa client banks and the merchants. It serves as a source of reference for Visa client banks and merchants when selecting service providers for outsourcing Visa payment related services. For detailed information on the VRSP Program, please visit January

19 7 References 7.1 Agent Website For Agent Registration, go to Third Party Compliance Requirements For PCI DSS requirements, go to For PIN Security requirements, go to For 3-D Secure Access Control Server security requirements, go to Other Program Links For Account Information Security (AIS), go to For Visa Registry of Service Providers (Registry), go to For Adobe Reader download and installation, go to For Visa Online access application, go to Asia Pacific - CEMEA Contact For Agent Registration queries, please contact us at agents@visa.com January

20 Glossary 3-D Secure Access Control Services (ACS) Account Number Acquirer Agent Application processing services ATM/POS terminal deployment services ATM/POS terminal maintenance services ATM transaction processing services Attestation of Compliance (AOC) Authorization Provider of a software protocol that enables secure processing of Verified by Visa transactions over the Internet and other networks. The 16-digit number that appears on the front of all valid Visa cards. The number is one of the card security features that should be checked by merchants to ensure that a cardpresent transaction is valid. A financial institution that enters into agreements with merchants to accept Visa cards as payment for goods and services. Commonly referred to as the merchant bank. An entity that acts as a VisaNet Processor (VNP), Third Party Agent (TPA), or both. A Third Party that processes applications for Visa cards on behalf of the issuer. A Third Party that installs ATMs or POS terminals. A Third Party that performs maintenance of ATMs or POS terminals, both hardware and software. A Third Party that processes Visa transactions originating through ATMs. This document, which is maintained by the PCI SSC, denotes who the QSA was that completed the ROC and includes the services that are provided by the entity being reviewed. An office of the entity being reviewed signs this to confirm the accuracy of the ROC. A process where an issuer, a VisaNet Processor, or Stand-In Processing approves a Transaction. This includes: Domestic Authorization International Authorization Offline Authorization January

21 Cardholder Cardholder Data Chargeback Customer Service Distribution Channel Vendor Encryption Support Organization (ESO) Independent Sales Organization (ISO) Instant Card Personalization Instant Card Issuance services Internet Payment An individual to whom a card is issued, or who is authorized to use this card. Data encoded in the card magnetic stripe such as cardholder name, card expiry date, CVV, etc. A formal process that allows an Issuer to charge the amount of sale back to the acquirer, because the acquirer or merchant has not complied with requirements for a Visa transaction. A Third Party that provides support for cardholder or merchant queries. A Third Party responsible for storage and shipping of premanufactured, commercially ready Visa Products (warehouses, card packagers, logistic companies) An ESO maintains a business relationship with a Plus/Interlink client that includes loading or injecting encryption keys into ATMs, terminals or PIN Pads and kiosks or loading software into a terminal or ATM which will accept Visa branded cards, merchant help desk support, including re-programming of terminal software. Entities using vendor supplied Remote Key Distribution techniques must ensure that such vendors are registered with Visa as ESOs. An organization that has a direct relationship with issuing and/or acquiring clients. Clients contract with ISOs to provide specific services such as merchant solicitation, cardholder solicitation, customer service and card application processing. ISOs act on behalf of Visa clients to deploy and/or service qualified ATMs, solicit other entities (i.e. merchant, corporate members, government entities, etc.) to sell, activate or load prepaid cards. The ability to instantly personalize Visa cards as the customer waits or to respond immediately to the request for an emergency replacement of a cardholder s lost or stolen card. A Third Party Agent that performs instant card personalization and issuance for the issuer. A Third Party that contracts with an acquirer to provide e- January

22 Service Provider (IPSP) Issuer Key management Loyalty program management Mail Order/Telephone Order Merchant (MO/TO) Managed Services Merchant Merchant Agreement Merchant Servicer (MS) Merchant Training Services Payment Card Industry Data Security Standard (PCI DSS) commerce payment services to a Sponsored Merchant. Also referred to as a Merchant Aggregator. A financial institution that issues Visa cards. The generation, transmission, storage, loading, safeguarding, use, and replacement of keys in a cryptography system. A Third Party Agent that provides management services for a Visa Clients loyalty program and has access to cardholder data. Business where the primary or a major source of income comes from merchandise or services sold by mail or telephone. Such transactions are frequently charged to customers payment card accounts. Services that are provided or facilitated by the CFS agent over centralized or hosted network environments to the franchisees such as property management systems, inventory control systems, menu distribution systems, etc. A principal or entity entering into a card acceptance agreement with a Visa member financial institution. A contract between a merchant and an acquirer containing their respective rights, duties, and obligations for participation in the acquirer s Visa or Visa Electron Program. An organization that stores, processes, or transmits Visa account numbers on behalf of the member s merchant. A Merchant Servicer has a contract with a client s merchant (although not necessarily with the client) and provides specific merchant services (e.g. online shopping carts, payment gateways, hosting facilities, data storage, and authorization and/or clearing and settlement messages). A Third Party who provides terminal, fraud, or card acceptance training for merchants. A comprehensive set of international security requirements established by the Payment Card Industry to protect cardholder data. These requirements apply to all Visa clients, merchants, and Third Party Agents that store, process, or January

23 transmit cardholder data. Payment Card Industry Security Standards Council (PCI SSC) The PCI Security Standards Council is an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection. The PCI Security Standards Council s mission is to enhance payment account data security by driving education and awareness of the PCI Security Standards. The organization was founded by American Express, Discover Financial Services, JCB International, MasterCard Worldwide, and Visa Inc. Payment Gateway Payment Service Provider (PSP) Personal Identification Number (PIN) PIN transaction processing at POS Terminal Prepaid Card Prepaid solicitation, sales, activation, and/or loading Report of Compliance (ROC) Self-Assessment Questionnaire (SAQ) A system that provides electronic commerce services to merchants for the Authorization and Clearing of Electronic Commerce Transactions. An entity that contracts with an Acquirer to provide payment services to a Sponsored Merchant. A personal identification alpha or numeric code that identifies a cardholder in an Authorization Request originating at a terminal with Authorization-Only or Data Capture-Only Capability. A third party that processes Visa transactions containing PINs originating from Point-of-Sale (POS) terminals A card used to access funds in a Prepaid Account or a card where monetary value is stored on a Chip. A Third Party that distributes prepaid Visa cards to merchants or end sellers, provides prepaid activation or load services. Report containing details documenting an entity s compliance status with the PCI DSS. The PCI DSS SAQ is a validation tool for merchants and service providers that are not required to undergo an on-site data security assessment per the PCI DSS Security Assessment Procedures. The purpose of the SAQ is to assist organizations in self-evaluating compliance with the PCI DSS, January

24 and you may be required to share it with your acquiring bank. The SAQ version D has been developed for all service providers defined by a payment brand as eligible to complete an SAQ. Settlement Sponsored Merchant Solicitation Third Party Agent (TPA) Third Party Agent Registration Third Party Servicer (TPS) Verified by Visa Visa Client The reporting and transfer of Settlement Amounts owed by one Client to another, or to Visa, as a result of Clearing. An electronic-commerce merchant that contracts with a Payment Service Provider (PSP). The PSP performs some or all of the sponsored merchant s payment-related operations on its behalf. The sponsored merchant must meet all card acceptance requirements in the Visa International Operating Regulations, with the single exception that it may have a contract with a PSP, rather than an acquirer. A Third Party that solicits for new cardholders or merchants. An entity that is not defined as a VisaNet Processor that provides payment-related services, directly or indirectly, to a Visa client and/or stores, transmits, or processes cardholder data. A TPA must be registered by all Visa clients utilizing their services, directly or indirectly. Third Party Agents must enroll with Visa prior to providing any services on behalf of a financial institution or merchant. This process is completed through the Visa Membership Management tool (VMM). An organization that stores, processes, or transmits Visa account numbers. The TPS has a direct relationship with the Visa client. Validates a cardholder s ownership of an account in real time during an online Visa card transaction. When the cardholder clicks buy at the checkout of a participating merchant, the merchant server recognizes the registered Visa card and the Verified by Visa screen automatically appears on the cardholder s desktop. The cardholder enters a password to verify his or her identity and the Visa card. The issuer then confirms the cardholder s identity. An organization which is a client of Visa and which issues cards and/or signs merchants. January

25 VisaNet VisaNet Processor (VNP) The data processing systems, networks and operations which are used to support and deliver authorization services, exception file services, clearing and settlement services and any other services. A Visa client or Visa-approved non-client that is directly connected to VisaNet and provides authorization, clearing, or settlement services to merchants and/or clients. January