Seamless transaction processing is crucial for both issuers and acquirers. However, even with the most advanced systems, there are times when disruptions or failures can occur in the issuer's system, resulting in declined transactions. To avoid customer dissatisfaction and lost revenue for merchants, Visa and Mastercard offer a backup service known as Stand-In Processing (STIP) for Visa and Stand-In (SI) for Mastercard. These services ensure that transactions continue smoothly, even in the event of system failures.

In this blog, we’ll explore how STIP and SI work, why they are critical for issuers, and how these systems help maintain transaction continuity and payment security.


What is Stand-In Processing (STIP) and Stand-In?

Stand-in processing (STIP) and Stand-In (SI) are crucial services that allow Visa and Mastercard to approve or decline transactions on behalf of issuers during system outages or failures. It is designed to keep transactions flowing, reducing disruptions, and preventing declines due to temporary system issues.


STIP (Visa) and Stand-In (Mastercard) are automatic systems that take over when communication between the issuer and the payment network is interrupted. This service ensures that transactions are authorized using pre-configured parameters defined by the issuer.

These parameters allow the network to make authorization decisions without waiting for the issuer system to return online, minimizing customer decline impact.

This service is designed to be transparent to cardholders, which means that customers won't notice any delays or interruptions in their payment experience, even if the issuer's system is temporarily unavailable.

Why STIP and Stand-In matter for issuers

Issuers benefit from STIP and Stand-In services for various reasons. Here are the primary benefits:


Reduced risk of declined transactions

When an issuer system is down, STIP ensures that transactions continue to be authorized, preventing delays and ensuring cardholders can complete purchases. This minimizes the risk of rejected payments, which could lead to lost sales for merchants and customer frustration.


Minimized customer impact

By maintaining continuous authorization, STIP and stand-in services help preserve the customer’s experience. Even in the event of system issues, the service ensures that the payment process remains smooth and uninterrupted, providing both the cardholder and the merchant with a seamless transaction experience


Regulatory Compliance

In many cases, issuers are required to maintain backup systems that meet certain compliance and operational standards. By using STIP and Stand-In services, issuers can ensure they meet regulatory requirements and keep their systems compliant with industry standards for payment security and continuity.


Increased trust and reliability

The availability of a reliable backup system like STIP and Stand-In ensures that issuers can offer secure, continuous payment services to their customers. This builds trust and reinforces the credibility of the payment ecosystem, as both cardholders and merchants know that the system will continue to work even in the face of technical issues.

Contactless credit card transaction on POS terminal, illustrating seamless payment continuity.


Ensuring proper configuration for optimal use of STIP and Stand-In

To make sure that STIP and/or Stand-In services work effectively, issuers must configure the parameters correctly. Here are some of the best practices that issuers should follow to ensure smooth operation:


Key recommendations for issuers:


Regularly update transaction limits: Adjust limits based on seasonal trends or other factors to ensure that transactions are properly authorized.

Ensure key exchange for security validations: Ensure the security keys for verifying transactions are up to date, allowing the backup system to process payments securely.

Promptly respond to authorization requests (messages 0120 and 0130): Ensure that responses are sent back promptly to keep transactions moving smoothly.

Periodically review blocked cards and business rules: Regularly audit and update blocked cards, account flags, and business rules to ensure that STIP or stand-in services function effectively.

Review stored STIP/Stand-In messages: Issuers should retrieve Store and Forward (SAF) messages within four days. Failure to do so may lead to penalties, making it essential to monitor and validate these transactions consistently.

The issuer responds: Within seconds, the issuer sends an approval or rejection response back through the payment network, and the acquirer passes the result to the merchant.

Issuers can optimize STIP usage by properly configuring these parameters and ensuring that system failures do not disrupt payment processing.



Ensuring smooth, secure transactions with STIP and Stand-In

Stand-in processing (STIP) and Stand-In systems are crucial for ensuring continuous transaction processing, even when system disruptions occur. For issuers and acquirers, it's essential to understand how to leverage these backup systems to minimize disruptions, enhance security, and maintain customer satisfaction.

By configuring STIP and Stand-In correctly and staying compliant with regulatory requirements, issuers and acquirers can guarantee a seamless payment experience for both merchants and cardholders.