What is the new VARS Assessment of Merchant Credit Worthiness?

Visa’s new Acceptance Risk Standards significantly shift how acquirers assess merchant creditworthiness, diverging from the legacy Global Acquirer Risk Standards in both strategy and scope. Under the retired framework, acquirers predominantly relied on periodic reviews and static historical data to determine a merchant’s ability to manage payment risks. While this offered a foundational risk baseline, it often lacked agility in addressing rapidly changing market conditions and emerging fraud trends.

The current Acceptance Risk Standards emphasize a more holistic, data-driven approach. By integrating real-time analytics and continuous monitoring tools, acquirers are better equipped to evaluate merchant creditworthiness on an ongoing basis. This model factors in dynamic variables such as transaction velocity, emerging fraud typologies, and operational sustainability to provide a more accurate, proactive risk picture. In addition, these standards encourage stronger collaboration between acquirers, issuers, and other ecosystem players, creating a more transparent flow of risk intelligence.

Unlike the Global Acquirer Risk Standards, the new guidelines also underscore the importance of tailored controls that reflect each merchant’s unique risk profile. Acquirers are urged to develop custom strategies—using advanced underwriting models and machine learning insights—to mitigate credit risks. This level of personalization not only helps reduce losses but also provides legitimate merchants with faster onboarding and smoother payment acceptance experiences.

Ultimately, Visa’s Acceptance Risk Standards position on merchant creditworthiness represents a forward-thinking evolution—one that fosters trust, drives responsible growth, and responds more effectively to the multifaceted demands of the modern payments landscape.