ISX and VISA
From Nasha and a regular contact of mine on Linkedin as I am banned on ASX for attacking how protected the ASX is over on their site.
"So in my hunt for further information on the Visa situation in Europe I have been trying to contact Visa via multiple channels with no success. In my hunt for this information I stumbled on the following
So I did get from Visa a list of high risk merchant codes and it seems it doesn’t just doesn’t just affect gambling, it will extend to securities, video games etc etc. Recently 5816 MMOG and 6510 Crypto were added as high risk. Visa is definitely leaving these sectors. There is history here from what I have gathered, it’s now Visa Inc and it used to be Visa Europe, VE was highly tolerant of gambling as it was UK based but after the acquisition things are changing.
I called up ISX yesterday and they said these changes are not material to them, they also said MasterCard doesn’t have issues nor do JCB diners discover. Video games were previously low risk not high brand risk but now that have been added, also crypto has been added. Note that HBR does not mean high AML/CFT risk. Just means visa has a policy decision regarding association with it’s brand. This spat you see with Germany is exactly what’s going on with ISX. The obviously process large amounts of these transactions and have fallen under this HBR. The Isx thing appears to be part of a wider issue that visa has with HBR. What it means is that people won’t stop using these merchants - they will simply pay another way. Sepa instant and MasterCard, coupled with paydentity, will be key. Isx was never is general retail so visa has very little impact to its operations.
To summarise Visa is withdrawing from gambling video games and crypto, when they classify these merchants as HBR card issuers will then usually block the category and declines go through roof and authorisations through floor.
These are sectors visa has classified as high brand risk:
MCC CodeCategory Description4722Travel Agencies and Tour Operators Travel arrangements, tours, charters4812Telecom Sales and Equipment Telecommunication devices4814Telecom Services Telecommunication services4816Computer Network Services Internet service providers4829Wire Transfers and Money Orders5122Drugs, Proprietaries & Sundries5912Drug Stores and Pharmacies5962Direct Marketing - Travel Includes discount clubs5964Direct Marketing - Catalog Mail and telephone orders5966Direct Marketing - Outbound Mail and telephone orders5967Direct Marketing - Inbound5967Direct Marketing - Inbound Telesevices, audio & videotext5968Direct Marketing - Subscription Recurring subscriptions5969Direct Marketing - Other Radio and TV sales5993Cigars, Tobacco Includes stands7021Timeshares Rentals, leases and sales7273Adult Dating and Escort Various dating services7841Video Tape Rental Stores Adult content7922Ticketing Agencies Secondary ticketing7994Video Games and Arcades Skill Games requires registration7995Betting and Casino Gambling Online casino, lottery, wagers9399Government Services State Lottery Requires Registration"