Visa Debuts New Product Designed To Make It Safer To Pay Directly From Bank Account

Visa is planning to launch a dedicated service for account-to-account payments in Europe next year, which will allow users to set up direct debits on merchants' e-commerce stores with just a few clicks. This service will enable consumers to monitor their payments more easily and raise any issues by clicking a button in their banking app, providing similar protection to card transactions. The service aims to help users deal with problems like unauthorized auto-renewals of subscriptions by making it easier to reverse direct debit transactions and get refunds. Initially, the service won't apply to things like TV streaming services, gym memberships, and food boxes, but this is planned for the future. The product will first launch in the U.K. in early 2025, followed by releases in the Nordic region and elsewhere in Europe later in 2025. Visa's A2A service will allow consumers to set up variable recurring payments, a new type of payment that allows people to make and manage recurring payments of varying amounts. This will replace static direct debits, which require advance notice of any changes to the amount taken. With Visa A2A, users will be able to cancel or modify their direct debits and set up new ones or carry out one-off transfers more easily. The new service is designed to provide consumers with more control and flexibility over their account-to-account payments.