Visa Direct B2B Institutional Exception & Settlement Policy

1. Scope

This policy governs exception management and settlement adjustments for all Visa Direct B2B institutional transactions processed through our dedicated Merchant ID (MID) and Terminal ID (TID) configurations.

2. Exception Management Categories

The following exception categories are addressed through institutional procedures:

- Transaction declines

- Reversals

- Settlement exceptions

- Compliance reviews

- Regulatory holds

- Operational processing exceptions

3. Settlement Adjustments

- MID/TID Reconciliation: Daily reconciliation is performed against processor reports, Visa settlement records, acquiring bank reports, and treasury management records.

- Discrepancy Resolution: Settlement errors identified through MID/TID reporting are investigated and resolved within 2 business days.

- Exception Reporting: Root cause classification for all exceptions with SLA-governed resolution.

- Pre-Funded Accounts: All adjustments are settled against pre-funded institutional accounts as per the Visa Direct treasury settlement model.

4. Compliance Holds

- Transactions routed through the institutional MID/TID may be temporarily held for:

 - Sanctions screening (OFAC, UN, EU)

 - PEP (Politically Exposed Person) review

 - AML (Anti-Money Laundering) monitoring

 - Regulatory compliance verification

- Hold duration: 48 hours maximum unless regulatory action requires extension.

5. Treasury Balancing Controls

- Automated variance detection for all settlement activities.

- Intraday and end-of-day FX position monitoring.

- Root cause classification for all exceptions with SLA-governed resolution.

6. Contact

For institutional settlement inquiries, contact Treasury Operations: Email: jmd@jmdtrade.com | Phone: +1 868 319 4727