GARS retirement presents VARS: Archetypes and Risk Domains
Visa’s recent decision to retire its Global Acquiring Risk Standards (GARS) and transition to the new Visa Acceptance Risk Standards (VARS) signifies a pivotal evolution in how acquiring risk is identified and managed. As the payment ecosystem becomes increasingly complex—with diverse payment facilitators, marketplaces, and evolving business models, the shift to Archetypes and Risk Domains introduces a more nuanced and adaptive framework.
Archetypes serve as categorical profiles that group merchants and payment entities by shared characteristics, such as transaction volumes, service models, or geographic factors. This approach aims to ensure that risk assessment is not overly generalized. Instead, each Archetype highlights the particular risk behaviors of organizations within that category, enabling acquirers to apply precisely tailored oversight and compliance strategies.
Meanwhile, Risk Domains focus on the specific risk activities within the transaction lifecycle. They help acquirers pinpoint where vulnerabilities may exist—be it in authorization, clearing, settlement, or dispute management—and take targeted measures to mitigate threats in real time. Through the lens of these Domains, acquirers and their partners can better understand how fraud and security threats arise and allocate resources where they will have the greatest impact.
By combining Archetypes and Risk Domains, Visa Acceptance Risk Standards offer a more granular and proactive approach to safeguarding payment ecosystems. This new framework not only empowers acquirers to tackle emerging threats with precision, but also fosters greater trust and transparency among consumers, merchants, and the broader financial community. The result is a streamlined, future-ready standard that underpins resilience in a rapidly evolving payments landscape.
If you are interested in learning more about compliance concerns within the payments industry, we are here to help. Comment below if you are studying these revised standards.
