What being Visa licensed means for us (and you)

What being Visa licensed means for us (and you)

Cardaq is proud to be an official principal member of the Visa network – here we explain why you should be as excited as we are about getting licensed.

In the world of payments, suppliers and merchants are spoiled for choice. There are thousands of organisations around the world operating in the space, executing transactions and vying for attention.

Though Cardaq has been on a great journey since its inceptionin 2011, it’s hard to stand out from the crowd. This is why validation from a reputable third party, a recognisable brand name that people know and trust, can make a huge difference – not just in terms of perception but in supporting further innovation and growth.

 This is where Visa came in.

The start of our Visa journey

Five years ago, Hugo Remi, CEO and Founder, decided to take Cardaq into new and bold directions. That’s why he started pursuing a Visa licence, with the aim of becoming a principal member of the Visa network.

The Visa licensing program is exclusive with a licence seen in the industry as a badge of honour. This certifies that Visa – household name and payment giant dealing in billions of transactions every day – trusts a licensee and that thecompany has passed rigorous tests. This process ensures that all systems and foundations of the applicant company are securely in place to offer merchant services. It’s also worth remembering how much of a giant Visa is in the payments world. According to their most recent annual report, Visa oversaw $14.8 trillion in payments in 2023.

Back in 2019, Hugo was also working in Washington DC on the board of the National Payment Association. There, he met one of Visa’s executives who helped him start the lengthy and arduous licensing process.

"The process had started, but we were a young company and not prepared for what we would face,” recalls Hugo. “It took us a while to complete the issuing licence application, but when we were ready to go live, COVID happened.”

With the world in lockdown, progress was halted and at Cardaq we were forced to freeze the membership application along with many other activities. In time this resumed, but we still faced an uphill struggle getting licensed – namely because the business was quite young at the time and still establishing itself.

“One of the most challenging parts of a Visa licence was our image in the eyes of the card scheme, your potential, your team and your personal commitment,” says Hugo. “It was very difficult to pass all the compliance/AML audits, prepare the documentation and manage this process.”

Last year, the Visa licensing mission was revisited once again when working with other major brands. Another 12 months of hard work would follow, but fortunately this time there was no massive disruption like in 2020.

Therefore in 2024 – a few years behind schedule but to excitement of everyone at Cardaq – the application for a Visa licence was approved! Not only had Cardaq met all the requirements, but Hugo says Visa – which had worked closely with the organisation throughout this process – admired how Cardaq had grown and developed.

Where next?

Of course, being a certified licensed partner of Visa isn’t just about the accreditation. This will enhance Cardaq’s service offering and allow the group to provide better and fuller levels of support.

Becoming a Visa principal member is important as these firms are typically larger institutions experienced in credit management, risk underwriting, collecting payments and billing customers. In addition, being a principal member of the Visa network grants us greater control over our payment infrastructure and accelerates Cardaq’s innovation.

This also allows Cardaq to work directly with Visa for product development and marketing. As a principal member, Cardaq can issue Visa cards, disburse cash, acquire merchants and hold settlement risk. Going further, Cardaq can directly license a BIN, sponsor others and host its own processing.

“Our plans are to build a strong long-term relationship with Visa, to build unique VIP services with Visa Infinite payment card products, and to become a serious market participant not only in the United Kingdom but also in the global area,” addsHugo, looking ahead. “We are still licensing many Visa products like chargeback and fraud mitigation tools, Visa Direct, processing solutions etc.”

This is exciting because people want to work with a Visa principal member, because these firms are usually at the forefront of innovation and driving the most exciting developments in fintech. This is why we can’t wait to see where this achievement takes Cardaq next on our journey.