News Release - 2 May 2008

Visa Account Updater (VAU) and MasterCard Automated Billing Updater (ABU)

VISA and MasterCard mandated in 2006 that all UK members implement the ‘Updater’ and ‘Stop’ services into their issuing and acquiring operations to support the use of Recurring Transactions/Continuous Authority as a payment method.

Both Visa and MasterCard’s services enables the exchange of updated account information electronically among participating parties.

In summary:

• Through their acquirers, and via their service providers, merchants submit inquiries regarding accounts with which they have ongoing relationships.
• VAU/ABU processes inquiries against its database and provides responses to merchants via their acquirers.
• Participating merchants update their customer databases with refreshed account data before transactions are authorised - avoiding potential declines, streamlining the authorisation process, reducing costs, and saving valuable time.

Benefits to VAU/ABU:

• Reduced associated costs of accepting card payments:
• Reduced number of chargebacks
• Reduced number of card declines
• Avoid running costly customer contact programmes to ensure up to date customer records are held
• Reduced forced customer attrition on anniversary periods through non-receipt of payment
• Increased customer loyalty and repeat purchases whilst not having to contact the customer to ensure payment details still valid
• Reduced voluntary customer attrition at anniversary periods
• Improved cashflow and revenue planning
• Flexibility of payment option to the customer
• Reassurance for your customers that they can stop payments when they wish

UPG is pleased to be able to offer VAU/ABU. Unique to UPG we are able to provide an updater solution that works hand in hand with our PCI:DSS total outsourced solution. Contact us for further information