Visa Debt Repayment Program: What You Should Know

Visa Debt Repayment Program: What You Should Know

 

Visa’s Debt Repayment Program allows qualified lenders to benefit from lower interchange.

We don’t really think of credit cards as a lending program, but that’s what a credit card is. You buy something by taking a little money from a third party, and then a month later, you pay it back with interest. That’s definitely a loan. It’s simplified on the consumer end, you don’t need to fill out an application every single time you pick up some coffee and donuts on your credit card, but it’s effectively the same system as any other lending program: The consumer takes a little money from the lender, and repays it with interest at an agreed-upon date.

Visa has rolled out this program to work on the side of merchants or businesses who are looking to accept loan re-payments via a debit card and to grow this business, incentivize business owners with lower interchange should their criteria be met.

Visa Debt Repayment Program:  Easier For The Consumer

Essentially what the Visa debt repayment program does is subsidize interchange that the merchant would pay by discounting it if the merchant is eligible. Furthermore, this streamlines the process for the consumer as they can easily pay back the loan with a debit card.

Transactions through this program are made with the debit card. It’s essentially another step towards a totally paperless economy. Customers would generally rather pull a card out of their wallet and be on their way. This increases loan re-payments through convenience.

Again, it’s all about ease and convenience. This streamlines the process and makes life a little bit easier for everyone.

Benefits For Merchants

The Visa debt repayment program is, of course, good news for consumers, but it offers a number of benefits for sellers, as well. The first one is probably pretty easy to guess: if you are a lender and looking to not only save money with lower interchange specialized for lenders but offer a more convenient way for consumers to pay, then Visa’s debt repayment program is a good fit. Most times consumers prefer to use the same debit card for re-payments, which then allows merchants to easily tokenize and store the debit card for a more automated re-payment in the future months.

By streamlining the process you’re going to see more customers actually following through, closing the deal and happily driving off in their brand new Honda, or calling U-Haul so they can start moving into their new home in the suburbs.

Whatever’s convenient for your customers is good for you. Automatic payment, for instance, means that a lot of the work is already being done for you, you don’t have to chase after your customers every month in order to get your payment.

visa consumer loans program 2018

Who Qualifies for the Visa Debt Repayment Program?

From a merchant end, most lenders qualify. Visa will, of of course, draw the line at certain points. If you offer higher interest loans, such as payday loans, it will disqualify you.

If you’re a legitimate business with traditional loan products, then there’s no reason to think that Visa would turn you down for their debt repayment program.

If your lending business is looking to offer a easier way to accept loan re-payments while saving money, Maverick can help. With Mastercard’s Consumer Loan Program as well, Maverick covers both major card brands.

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