Visa Integrity Risk Program (VIRP) for High Risk Merchants

Did you know high-risk merchants might see their transactions declined up to 30% because of compliance issues? This shows how important it is to watch over these industries closely. The Visa Integrity Risk Program (VIRP), starting May 1, 2023, is here to help. It replaces the old Visa Global Brand Protection Program (GBPP), making it easier for merchant acquirers in risky sectors to follow the rules.

The VIRP is all about keeping a close eye on merchants to stop fraud. It’s key to know what this program expects from your business. By understanding VIRP, you can meet its standards and avoid any damage to your reputation.

Key Takeaways

• The VIRP is essential for maintaining compliance in high-risk industries.
• It replaces the older GBPP to better address current market challenges.
• High-risk merchants face significant transaction decline risks.
• Effective merchant monitoring is key under the new program.
• Reputational risks can be lessened with strict oversight.
• Knowing VIRP details helps your business stay in line.

Understanding the Visa Integrity Risk Program (VIRP)

The Visa Integrity Risk Program (VIRP) is a big change for high-risk merchants. It moves from the GBPP to a more detailed system. This system looks at how merchants operate and the risks they pose.

VIRP looks at more than just brand risk. It considers many factors that affect risk management.

Transition from GBPP to VIRP

The move from GBPP to VIRP changes how Visa sees merchants. Now, Visa can better understand the risks each merchant faces. Knowing what VIRP focuses on is key to staying compliant.

This new way of assessing risk helps merchant acquirers. They can better watch over merchants and reduce risks.

Overview of Compliance Expectations

VIRP sets clear rules for merchant acquirers. They must watch merchants closely, report on them, and understand the risks. Acquirers need to be ready to meet these rules to keep the merchant world safe and compliant.

Key Terms and Definitions

Knowing VIRP’s key terms is important for success. Terms like ‘High Integrity Risk Merchants’ help figure out a merchant’s risk level. Understanding these terms helps you manage risk better and follow the rules.

Unique Features of the VIRP for High Risk Merchants

The Visa Integrity Risk Program has special features for high risk merchants. These are key for merchant acquirers to manage risk well. The VIRP divides high risk merchants into three tiers for better compliance and risk handling.

Three Tier Levels for High Integrity Risk Merchants

The VIRP uses tier levels to guide its approach. Tier 1 is the highest risk, including adult content, gambling, and pharmaceuticals. Tier 2 includes cryptocurrency and cyberlockers, which are also risky. Tier 3 is for merchants facing compliance issues or using deceptive marketing.

Knowing these tiers is vital for effective risk management in your business.

Control Assessments for Merchant Acquirers

Merchant acquirers must do control assessments, mainly for Tier 1 and Tier 2 merchants. These checks help spot specific risks for each business type. This way, you can take early steps to meet compliance needs.

Conclusion

The Visa Integrity Risk Program is changing how high-risk merchants are watched and followed. It sets clear rules and groups risks into levels. This makes things clearer and easier for those who handle payments.

For businesses in risky fields, knowing about these changes is key. It helps them manage risks better and follow the rules.

Understanding the VIRP is important for your business. Keeping up with new rules is critical to protect your interests. It’s more important than ever to watch your business closely and follow the rules.

Working with experts who get the VIRP can really help. They can guide you through the tough parts.

Contact IntegralPay to get help navigating VIRP and how it can affect you as a high-risk merchant. We know a lot about VIRP, high risk verticals and merchant monitoring. We can help your business stay on the right track in this complex world.