What is a visa provisioning service?

What is a visa provisioning service?

What is a visa provisioning service?

visa provisioning service is the activation of the mobile payment on the smart device using NFC technology. NFC refers to near field communication, a method of wireless data transfer that allows smartphones, laptops, tablets, and other devices to share data when in close proximity.

So Friends, in this article, we are going to know the answers to the visa provisioning service and all the questions related to it.

What is a visa provisioning service?

A visa provisioning service is the activation of the mobile payment on the smart device using NFC technology. It has already been used by the network operators, financial institution and transit operators to link Visa payment accounts to consumers’ smartphones.

NFC refers to near field communication, a method of wireless data transfer that allows smartphones, laptops, tablets, and other devices to share data when in close proximity.

Consumers could download mobile payment applications onto their phones, for example, a mass transit app for their city’s subway system, and then request their financial institution to activate mobile payments on their phone

Visa’s provisioning service authenticate the user account via a secure passcode, exchange the secure “keys” to unlock the NFC chip, activate the service and finally, downloading the mobile payment account information onto the mobile device.

Visa provisioning service is the result of Visa’s years of efforts on planning and working on secure mobile payments accounts OTA (over the air). It provides a convenient way for the users to make mobile payments available on mobile phones.

Does Amazon use Visa provisioning service?

The same applies to the visa provisioning service us bank statements and services which are connected with it including Netflix, Google pay, PayPal, and Amazon.

Their credit cards facilitate the purchase of tens of thousands of goods and services online, as well as the same is true for offline platforms.

What is provisioning in banking?

“Provisioning” is the term which is in use in commercial banks ever since the banks started lending as per the prudential norms

This is a system by which banks need to follow up the borrowal accounts

The following are some features of such form of lending:

  • The loans lent by the bank are classified into performing assets and non performing assets
  • Performing assets are one which generate income for the bank
  • Non performing assets are one which do not generate any income for the bank

Performing assets:

  • When the loan instalments and interest are paid in time without any delay on the part of the borrowers, such loan accounts are known as performing assets
  • They are called as standard assets

Non performing assets:

  • When the instalment in any borrowal account is not paid for period upto 90 days and more , it is known as non performing asset
  • When the interest in any borrowal account is not paid for a period upto 90 days and more, it is known as non performing asset
  • When both instalment and interest in any borrowal account are not paid for a period upto 90 days and more, such account is known as non performing asset
  • This means that the category of the account slips from performing to non performing
  • When the account is classified as non performing asset, it is treated as sub standard assets and it remains in the above status for a period upto 12 months
  • When there are no recoveries during the above period, the account is classified as doubtful assets provided the asset is backed by securities the realisable value of which is more than the liability in the account
  • When there are no recoveries in the substandards account for a period upto 12 months, the account is classified as loss assets when the assets are not supported by any tangible securities and in case of any securities, the value of such securities is lesser than the liability in the account

Banks have to follow up the loan accounts vigorously for recovering the instalments and interest and in the case of accounts like loss assets and doubtful assets, they have to pay more attention.

  • There is no guarantee that one hundred percent recoveries will be forthcoming in loss assets, doubtful assets and substandard assets
  • When there are no recoveries in such accounts, they become a drain for the bank and ultimately the bank has to write off such accounts from their assets portfolio (Writing off means reducing the amount from the profit generated by the bank ). This is done by step by step method taking into consideration various factors namely -nature of loan, value of security, nature of security, amount of loan etc.,

Provisioning:

  • This is a method by which certain sum of money is earmarked for write off. Provision means contingency. May happen or may not happen. The bank might have made some provision for write off in respect of one loan account; however, the borrower might have repaid the entire amount in one lumpsum and in this case, provisioning has no meaning because there will be no write off for this account since the entire amount has been recovered.
  • In the case of loss accounts for which the recovery is found to be almost negligible, banks make provision upto 100 percent
  • In the case of doubtful accounts for which some recovery is expected, banks make provision depending upon the period of classification and the provision may be 90; 85; 80 percent etc.,
  • Even banks make provision for standard assets also. It has to be noted that there is no guarantee that the personal loans granted to the borrowers will be recovered in full

At the time of finalisation of financial accounts by the end of March each year, they write off certain portion of loan accounts by means of provisioning already done in those accounts.

Provisioning provides some information about the financial loss that the bank is going to incur during the financial year on account of writing off loan accounts for which recoveries are expected to be almost nil

What is ‘provision’ in banking? When is it used?

The term “Provision” in banking sector is like the term “saving for rainy days” in the house hold sector. Out of income generated by the members of the household it is customary to set aside certain portion of the said income in order to meet any unforeseen expenses that may arise in future.

Similarly, out of the profit earned by a bank, certain portion/percentage of it is earmarked towards “provisioning” and kept aside.

This fund is utilised to take care of any unforeseen loss, recurring bad debts/NPA etc in order to keep the financial health of the bank in good shape. Hope I could throw some light.

Must Read:

How much does it cost to change a visa status?

You change your visa status from one non- immigrant category to the other. For example a visitor to a student status. You apply in Form I-539.

The current fee is $370 and a fingerprint fee of $85. If you need to file one more I-539 for extension of status to bridge the gap that would cost another $370+85.

You need to pay your SEVIS fees $350 and get receipt in I-901 at the time of filing for change of status. These are the statutory minimum costs required to file an application for change of status. There might be other scenarios in changing status. I just explained one and the associated minimum costs.

Conclusion

Provisioning, literally means: to provide something for you. This is something you have but making it usable. In case of provisioning of Visa cards, Visa has processes that enable Banks and Personalization Bearaus must follow to securely create a card with chip. That’s not quite a service in traditional sense of an API exposed for someone to do that.

Later came the ability to create similar secure chip on a secure element of a mobile device, and a few years later a notion of Host Card Emulation where software based simulation of secure element can occur.

Combined with the process of Tokenization, this adds a layer of security where while your “account” is not provisioned on your device it is not exactly your account but a mere reference to your account that may still live on a plastic card.

This is where provisioning service come to play. This is really the effect of getting a “token” for particular use. For eg, on a given device for mobile payment using NFC (contactless) or for a given merchant for a payment at their online store.

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