Now that we’ve established the objective of the Visa Delegated Authentication (VDA) program, we can dig deeper, and take a more in-depth look at this program.
Since this program is based on the interaction between the issuer and the merchant, or whichever entity they choose to delegate the authentication responsibilities to, you might be wondering where Visa fits into this picture.
When the issuer delegates Strong Customer Authentication (SCA) to the merchant, they do so through the Visa rules. All issuers and acquirers are required to abide by these rules if they want to participate. We’ve already discussed the fraud rate threshold that merchants must meet if they want to be a delegate in this program. But that’s hardly the only rule on the merchant/acquirer side.
Acquirers will ensure that any merchant hoping to participate in the program can provide at least two factors of SCA. The acquirer will also give the merchant a readiness questionnaire. We’ll talk more about this in a little bit.
On the other side of the aisle, all issuers in Europe will be auto-enrolled into this program, with the ability to opt-out if they would like to do so. Visa will continuously provide updates to these opted-in issuers, with delegates who have been approved by the acquirer. Additionally, issuers are not permitted to request additional authentication on these transactions unless they believe there is a very serious risk of fraud. Along those same lines, issuers cannot systematically decline these transactions either.
We promised we’d get back to the questionnaire. Once the merchant has completed this questionnaire with their acquirer, they will be assigned a special value, a Visa Merchant Identifier (VMID). This identifier will remain linked to the VDA program and will be used during authentication and authorization requests.
We hope we were able to answer any of your questions about Visa’s role in this program, how they facilitate it and any general things about the program. Feel free to reach out with any other stray questions or thoughts.