1. Visa Account Updater & Stop Service Direct Response Forum Europe 25 April 2006

2. Presentation Identifier.2 Information Classification as Needed Introduction - Agenda Regular Payments Initiatives Overview of VAU & Stop Service Merchant Feedback Stop service

3. Presentation Identifier.3 Information Classification as Needed Regular Payment Benefits Cardholders Easy to set up and convenient for remote environments - Internet Members Cuts costs of cheques. Improved customer service. Visa Increased transaction volume Merchants Easy mechanism to initiate remote payment and improved renewal rates Convenience

4. Presentation Identifier.4 Information Classification as Needed Existing card scheme solutions have evolved over 30 years and do not necessarily meet the requirements of all parties: merchants often hold invalid card number information this leads to high decline rates (circa 30%) and chargebacks (up to 20 x face-to-face) difficult to stop Regular Payments – regulatory impact Cardholder and merchants are becoming reluctant to use card based Regular Payments But there are problems

5. Presentation Identifier.5 Information Classification as Needed Visa Europe’s response Tactical Improvements Rule changes to facilitate volume growth e.g. recurring transactions cannot be declined for invalid expiry date Summer 2004 3 UK credit Issuers undertook a refresh of card numbers for 5 Regular Payment merchants. –Provided a statistically high level of either refreshed card numbers (18.5%) or confirmed to merchant that they were currently using the most recent card number –Demonstrated the value of developing an automated mechanism to refresh card numbers Strategic Improvements Build an automated service to refresh merchant card number databases and provide a mechanism to stop Regular Payments

6. Presentation Identifier.6 Information Classification as Needed How does the VAU / Stop Service Work? VAU / Stop Service Acquirer Merchant Issuer Card Management System Issuer Customer Service Centre Batch card number updates (minimum monthly) On-line stop instructions Submission of enquiry file (merchant determines Frequency) Acquirer submits enquiry on merchants behalf Merchant receives Refreshed number or Confirmation of existing number Details of any stop transactions

7. Presentation Identifier.7 Information Classification as Needed UK Operating Regulations The following proposals were approved by the Visa UK Board By April 2006 All UK Issuers (Credit & Debit) for participation in VAU & Stop service All UK Acquirers that acquire recurring transactions for participation in VAU Stop service All UK Acquirers to register their RT merchants on the VAU Service

8. Presentation Identifier.8 Information Classification as Needed Merchant Feedback - Visa Account Updater Very positive feedback. Will help with decline and chargeback situation Like getting a response on every card number. Would be useful to get policy number back with the updated card number This could solve the majority of problems

9. Presentation Identifier.9 Information Classification as Needed Stop service Insurance companies want to provide policy number. This is key to recognising customers. They would be happy to perform enquiries after the initial set –up. Merchants see advantage of Stop facility as early warning of customer dissatisfaction. Having the policy reference number is important as they will use it to double check that the customer wants to stop the policy/service

10. The Stop Service Overview of the VAU Stop Service

11. Presentation Identifier.11 Information Classification as Needed Stop Service This slide explains how the Issuer is able to stop a recurring payment on one of its account numbers. VAU Merchant Database Merchant and Account information from the Acquirer enquires is copied to the Merchant database.  The Issuer inputs the card that they want to place the Stop on using the Stop Service on Visa Online.  All the Merchants and Policies associated with the card from previous Acquirer traffic is returned.  Acquirer Card Issuer

12. Presentation Identifier.12 Information Classification as Needed Back Enter PAN Number: Continue Stop or Resume Policy Issuer Reports Home Stop or Resume Recurring Payment 4xxxx11230000001

13. Presentation Identifier.13 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop Advices for Card 4xxxx11230000001 Stop Card Merchant / MPRN StatusLast billedDate Stopped Date Resumed Stop or Resume AOLActive AOL01203ActiveGBP 24.00 AOL01204StoppedUSD 85.0018.5.2005 SkyStopped21.3.200414.7.2006 AAActive AACARD198StoppedEUR 753.0017.11.20048.9.2005 AAHOME192ActiveUSD 15.00 Stop Resume Stop Resume Stop Resume Stop

14. Presentation Identifier.14 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop All Recurring Payments on Card PAN Number 4xxxx11230000001 Start Date of StopEnd Date for Stop (optional) 25/05/2005 CancelConfirm

15. Presentation Identifier.15 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop Advices for Card 4xxx11230000001 Stop Card Merchant / MPRN StatusLast billedDate Stopped Date Resumed Stop or Resume AOLActive AOL01203ActiveGBP 24.00 AOL01204StoppedUSD 85.0018.5.2005 SkyStopped21.3.200414.7.2006 AAActive AACARD198StoppedEUR 753.0017.11.20048.9.2005 AAHOME192ActiveUSD 15.00 Stop Resume Stop Resume Stop Resume Stop

16. Presentation Identifier.16 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop All Recurring Payments for Merchant on Card PAN Number 4xxxx11230000001 Merchant AOL Start Date of StopEnd Date for Stop (optional) 25/05/2005 CancelConfirm

17. Presentation Identifier.17 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop Advices for Card 4xxxx11230000001 Stop Card Merchant / MPRN StatusLast billedDate Stopped Date Resumed Stop or Resume AOLActive AOL01203ActiveGBP 24.00 AOL01204StoppedUSD 85.0018.5.2005 SkyStopped21.3.200414.7.2006 AAActive AACARD198StoppedEUR 753.0017.11.20048.9.2005 AAHOME192ActiveUSD 15.00 Stop Resume Stop Resume Stop Resume Stop

18. Presentation Identifier.18 Information Classification as Needed Stop or Resume Policy Issuer Reports Home Stop a Recurring Payment for a Merchant on Card Cancel PAN Number 4xxxx11230000001 Merchant AOL MPRN AOL01203 Start Date of StopEnd Date for Stop (optional) Confirm 25/05/2005

19. Presentation Identifier.19 Information Classification as Needed Summary A large sector opportunity exists for Visa and its Members Strategic solutions have been designed and are available to be rolled out on a market by market basis Opportunity to implement VAU new operating regulations in any Visa Europe market. Initial Market is the UK, followed later this year by Ireland

20. Thank you