Visa Card Required to Be Present for Cash Advance?

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Question:

Is it a Visa requirement that a customer's card be present to do a cash advance? We have customers calling asking us to take their Visa card information over the phone so they can pay their loan with the bank.

Answer:

VISA does require that the physical card be present for an acquirer to process a cash advance. Further, VISA Operating Rules state, "A U.S. Merchant must not accept a Visa Consumer Credit Card or Commercial Visa Product, issued by a U.S. Issuer, to collect or refinance an existing debt." VISA does offer a payment acceptance service that allows you to accept debit cards for loan payments. Contact your merchant terminal processor for information regarding registering for this service with VISA. Since these are card absent transactions, the bank will bear the liability for any claims of fraudulent payments.