Welcome to Part 3 of the STIP Mega Guide. In this article, we explore the risk control tools available within STIP processing: Visa Advanced Authorization (VAA), VAA STIP, and Visa Risk Manager (VRM). These tools help issuers make informed stand-in decisions that balance approval rates with fraud protection.

Visa Advanced Authorization (VAA)

Visa Advanced Authorization provides a risk score (0-99) that helps issuers evaluate transaction risk. The score is calculated using Visa's neural network models, which analyze transaction patterns, merchant data, and cardholder behavior.

How VAA works

When an authorization request is sent to Visa, VAA analyzes the transaction and returns a risk score in field 44. Higher scores indicate higher risk. Issuers use this score, along with their own risk rules, to make authorization decisions.

Key considerations:

  • VAA scores are most effective when used consistently across all authorization paths
  • Score thresholds should be calibrated based on your fraud tolerance and business objectives
  • VAA performance improves over time as Visa's models learn from transaction patterns
  • Field 44 contains the VAA score and should be included in authorization requests

VAA STIP

VAA STIP extends VAA scoring to stand-in processing scenarios. When STIP is triggered (due to issuer unavailability, timeout, or other conditions), VAA STIP can provide risk scoring to help STIP make more informed approval or decline decisions.

VAA STIP benefits

By enabling VAA STIP, issuers can maintain risk-based decisioning even during STIP events. This helps prevent fraud while maximizing legitimate transaction approvals when the issuer host is unavailable.

Configuration requirements:

  • VAA STIP must be enabled in your VisaNet configuration
  • STIP policies can be configured to use VAA scores for decision-making
  • Different VAA score thresholds can be set for different transaction types or merchant categories
  • VAA STIP scores are included in STIP advice messages for reconciliation

Visa Risk Manager (VRM)

Visa Risk Manager is a comprehensive fraud prevention platform that provides real-time risk assessment and decisioning capabilities. VRM can be integrated with STIP processing to enhance stand-in decision quality.

VRM capabilities

VRM offers advanced machine learning models, device fingerprinting, behavioral analytics, and customizable rules engines. It can provide risk scores and recommendations that complement or enhance VAA scoring.

Integration with STIP:

  • VRM can be configured to provide risk assessments during STIP events
  • VRM scores can be used alongside VAA scores for more comprehensive risk evaluation
  • VRM's device intelligence helps identify suspicious patterns even when issuer systems are unavailable
  • VRM provides detailed reporting and analytics for post-transaction analysis

Best practices for STIP risk tools

To maximize the effectiveness of VAA, VAA STIP, and VRM in your STIP processing:

  • Calibrate thresholds: Set risk score thresholds based on your historical fraud rates and business objectives. Regularly review and adjust these thresholds.
  • Monitor performance: Track approval rates, decline rates, and fraud rates separately for STIP transactions versus issuer-approved transactions.
  • Use multiple signals: Combine VAA scores, VRM assessments, and your own risk rules for more robust decisioning.
  • Reconcile regularly: Review STIP advice messages to understand how risk tools performed during STIP events.
  • Test scenarios: Use test transactions to validate that risk tools are working as expected during STIP processing.

Important: Risk tools are most effective when properly configured and regularly monitored. Work with your Visa representative and Payment Authorization Expertise to optimize your STIP risk tool configuration for your specific business needs.

For help understanding and optimizing your STIP risk tools— please contact Payment Authorization Expertise. We can help you configure VAA, VAA STIP, and VRM to achieve Flawless Transactions. Every Time.

Get in Touch →