TL;DR:

In this Deep Dive edition of Fintech Wrap Up, I take a closer look at Visa Direct, a versatile push payment solution that leverages Visa’s global payment network. We dive into how it enables real-time transactions across multiple use cases, from person-to-person money transfers to business payouts. I break down the core components like the Funds Transfer API, Mobile Push Payment API, and the innovative Watch List Screening API. Plus, we explore the critical requirements for onboarding, from licensing to compliance with Visa’s core rules. Whether you’re a developer, financial institution, or fintech innovator, Visa Direct’s real-time capabilities, extensive reach, and robust security make it a game-changer. I also share insights on use cases, geographic considerations, and tips for seamless implementation. It’s all about creating faster, more secure payment experiences — and Visa Direct shows us how it’s done.

Getting Started with Visa Direct

All Visa Direct programs require the originator to be a licensed Visa acquirer or be sponsored by a licensed Visa acquirer who is ready and able to sponsor Visa Direct programs. Please reach out to your Visa account representative to get more information about Visa licensing requirements.

It should also be noted that a Visa Direct program requires the originator to ensure that all stages of transaction processing including transaction submission, financial settlement, dispute management, reporting are in place and effectively managed before launching a Visa Direct program using the APIs. The APIs available on the Visa Developer platform help to manage certain stages of the transaction specifically those related to financial transaction submission. The originator needs to be aware and ensure that the necessary capabilities are in place to support the complete transaction cycle. Only originators who can account for every aspect of the payment stack will be allowed to move their projects into production.

Things to Know

The Visa Direct APIs can be used in the sandbox by any developer. In order to enable transaction processing and settlement through Visa between the sending and receiving financial institutions, all pull and push payments must include an Acquiring BIN. Test Acquiring BINs are provided as part of the sandbox test data. However, in order to use the Visa Direct APIs in production, the Originator must either be a licensed Visa acquirer, or a third party Originator that is being sponsored by a licensed Visa acquirer for a Visa Direct program.

As noted above, there is more to offering a push payment service on the Visa Direct platform than just establishing a relationship with an acquirer. Prior to receiving an approval from Visa to move a project into production, developers will be required to validate their ability to meet all of the requirements of a full push payments processing service — not just be able to successfully process the Visa Direct Funds Transfer API.

The following table outlines examples of consumer and business services that can be built using the PushFunds operations of the Visa Direct APIs and highlights the accounts that can receive push payments. Coming soon in the U.S., Originators will also be able to use the Funds Transfer API to push funds to select other network-branded cards. Please contact developer@visa.com for further information or to request that Visa review and approve other use cases you may envision for push payments.

The Funds Transfer API enables pull and push payments from and to most Visa cards; however, there may be geographical or use case-based restrictions in some countries. For example:

• The only prepaid card accounts that are permitted to receive funds are reloadable prepaid accounts for which the recipient issuer has “Know Your Customer” or “Customer Identifiable” information on file for the cardholder.
• Push payments are generally not used for prepaid loads in the U.S. because the U.S. market currently has a separate prepaid load service called Visa ReadyLink.
• In the U.S., Visa cards can accept all domestic funds transfers, but cannot accept push payments from senders outside the U.S.
• Because the Account Funding Transaction (AFT) is not supported in many parts of the world, the PullFunds operations and the ReverseFunds operations on the Funds Transfer API may not be valid in certain regions.