What is the MasterCard Automated Billing Updater and Visa Account Updater?
The MasterCard Automatic Billing Updater (“ABU”) and Visa Account Updater ("VAU") is an automated solution that helps to ensure uninterrupted service for cardholders and uninterrupted payments by updating card-on-file (“COF”) information for recurring and nonrecurring payments. This program helps to reduce COF transaction declines due to changed account numbers and/or expiration dates.
Why is this service being offered to cardholders?
The MasterCard ABU and Visa VAU service is required by MasterCard and Visa for all consumer and business credit and debit cards.
How does the ABU and VAU service work?
Cardholders generally have recurring payments or a card-on-file set up with a merchant(s). When account changes are made to a cardholder’s account – for example, a debit or credit account number has been changed or an expiration date has been updated – cardholders often do not advise merchants about changed account information, which causes recurring payments to be declined as well as an inconvenience to members. The ABU and VAU service allows the updated information to be provided to participating merchants on behalf of the member resulting in fewer declines. The services provide a convenience to members so they do not have to contact each merchant with updated card information.
What are the benefits of the ABU and VAU service?
- Reduces “card not present” declines
- Helps to ensure on-time bill payment
- Provides better member service
- Prevents late fees and service disruption
Can members decline this service?
Yes. A member can request to opt-out of this service by completing the MasterCard ABU or Visa VAU Opt-Out Form. This form is also available upon request at your local branch or by calling 330-452-9801. However, if a member opts-out of the ABU or VAU service, the above mentioned benefits will no longer apply.
Will all of my payment information be automatically updated?
No. The ABU and VAU service is only available at participating merchants. Merchants can choose the frequency at which they check for updated payment information. To avoid late payments and penalties, members must check with their merchant to ensure their card information has been updated.
Do you have a list of participating merchants?
No. Participation in this service is at each merchant’s discretion. CSE Federal Credit Union does not have a merchant list.
What kind of card-on-file (“COF”) merchants participate in this service?
- Online Retailers (Amazon, etc.)
- Movies/Music/eBooks download services (Netflix, Spotify, Hulu, etc.)
- Online payment services (PayPal, Venmo, etc.)
- Transportation services (Uber, Lyft, etc.)
What if I opt-out and do not update my debit or credit card information with participating merchants?
Automatic payments will be declined and merchants may charge you a late fee.