Visa Electron: Why Not Accepted?

WoodruffsDad

What is the reason why some companies/organisations will not accept the Visa Electron debit card?

Since sorting out my financial difficulties I have a basic bank account with the Co-op and this is the card they supply.

Only this week I tried to take out a subscription to 'Which' magazine using my Visa Electron card via the internet but I kept getting the message 'invalid card number'. When I checked with the Consumers Association they told me that they don't accept Visa Electron.

Not a good example to set for a consumers champion!

Alex_LS

Visa Electron requires online authorisation to ensure there are sufficient funds. Presumably, the CA does not perform online authorisations, or your issuer does not allow Internet transactions.

WoodruffsDad

Alex_LS wrote: »

Visa Electron requires online authorisation to ensure there are sufficient funds. Presumably, the CA does not perform online authorisations, or your issuer does not allow Internet transactions.

Can't be the latter. I use my Electron card on the internet a lot. Yesterday I bought a £900 TV with it!

missymugwump

Hi

This is why a lot of people buy a pre pay card ie..
http://www.compareprepaid.co.uk/card.html

That way you can purchase online without the worry of being refused
It is also a very safe way to purchase online anyway
As if someone attempted to use it fraudulently it would normally not have money on it for them to whip

Degenerate

missymugwump wrote: »

Hi

This is why a lot of people buy a pre pay card ie..
http://www.compareprepaid.co.uk/card.html

That way you can purchase online without the worry of being refused

Point of order, a pre-paid card requires live authorisation just like a Visa Electron. In fact you could consider Electron the same a a pre-paid card, with the balance in the associated bank account representing the pre-payment.

Since chip and pin came in, which required most merchants to transition to live authorisation, there has been no good reason not to accept Visa Electron - as Visa executives themselves have been keen to point out. The problem is with the merchants.

cambsgirl_2

TPoint of order, a pre-paid card requires live authorisation just like a Visa Electron. In fact you could consider Electron the same a a pre-paid card, with the balance in the associated bank account representing the pre-payment.

hat would mean that it was pointless to have a pre paid card then
The whole point of having a pre paid card is that it is accepted where visa electron is not accepted.
Are you sure you are right Degenerate?

Alex_LS

Degenerate wrote: »

Point of order, a pre-paid card requires live authorisation just like a Visa Electron.

Whilst this may be how many Issuers set their cards up, there's nothing inherent in prepaid cards that requires online authorisation. In fact, I know of one product that holds the balance on the card and refreshes the balance against the server when it goes online.

Degenerate wrote: »

Since chip and pin came in, which required most merchants to transition to live authorisation

Point of order

Chip&PIN actually makes it less risky to perform offline transactions and certainly doesn't require online authorisation. It's only the UK banks that, in their nervousness, kept (or moved to) the high online percentage. The higher security cards being introduced over the next 18 months will mean there's even less need to perform online authorisations for standard transactions.

bert&ernie

Alex_LS wrote: »

Whilst this may be how many Issuers set their cards up, there's nothing inherent in prepaid cards that requires online authorisation. In fact, I know of one product that holds the balance on the card and refreshes the balance against the server when it goes online.

Which card is this? I know that EMV cards allow the velocity counter to be re-set when the card goes online, but I don't think full electronic purse applications are supported by the major schemes.

A pre-paid card is essentially the same as any other card carrying the same scheme logo. The issuer can set any chip risk management parameters that they want, but they will typically be much more restrictive on off-line spend than a regular credit card. They are also typically not embossed and have the magstripe service code set to on-line authorisation only - much the same as an electron card.

Alex_LS wrote: »

Chip&PIN actually makes it less risky to perform offline transactions and certainly doesn't require online authorisation. It's only the UK banks that, in their nervousness, kept (or moved to) the high online percentage. The higher security cards being introduced over the next 18 months will mean there's even less need to perform online authorisations for standard transactions.

I'm not sure that the introduction of higher security card authentication methods will directly driver higher levels of off-line auths. Contactless roll out may have an impact on this, but this will be down to increased volumes of low value transactions that are below the existing floor limits anyway.

cambsgirl_2

So does that mean that a prepaid card will not be accepted everywhere and there is no point in getting one if you already have a visa electron?
I wanted to get a prepaid card as I can only get visa electron but if the prepaid ones are not accepted where visa electron are not accepted is their any point?
Tanya

Alex_LS

bert&ernie wrote: »

Which card is this? I know that EMV cards allow the velocity counter to be re-set when the card goes online, but I don't think full electronic purse applications are supported by the major schemes.

Unfortunately, I can't give details because it was a pilot. It wasn't an electronic purse, but a proper credit application utilising the COTA/UCOTA and allowing the Issuer to reset the UCOTA during an online transaction.

bert&ernie wrote: »

I'm not sure that the introduction of higher security card authentication methods will directly driver higher levels of off-line auths.

Of course, they may not do but the fact is that there will be less need for online authorisation.

bert&ernie

Alex_LS wrote: »

Unfortunately, I can't give details because it was a pilot. It wasn't an electronic purse, but a proper credit application utilising the COTA/UCOTA and allowing the Issuer to reset the UCOTA during an online transaction.

Interesting. So the issuer host dynamically alters the cumulative limit - presumably based on account status. That's pretty cute. Did it work? Were there any issues with the terminals applying the scripts? PM me if you prefer.

Alex_LS wrote: »

Of course, they may not do but the fact is that there will be less need for online authorisation.

I see your point, but I still don't think that the decision to go on-line has that much to do with the risk of a counterfeit card. To my knowledge, nobody has actually encountered a cloned SDA card in the wild - at least not in the UK... yet!