Biology of Business

Visa payments system outage causes chaos

BBC News

BBC News (2018)

TL;DR

Partial switch failure prevented backup activation, causing 5.2 million failed payments across Europe in 10 hours.

By Alex Denne

Case study of Visa Europe hardware failure illustrating both risks of centralization (European region went down) and benefits of distribution (other regions continued operating).

Key Findings from News (2018)

  • 51.2 million transactions initiated during outage, 5.2 million failed (10.2% failure rate)
  • UK specifically saw 2.4 million of 27.6 million transactions fail (8.7% failure rate)
  • Peak disruption periods saw 35% transaction failure rates
  • Outage lasted 10 hours (14:35 to 00:45 BST) on Friday 1 June 2018
  • Root cause: 'rare partial failure' in primary switch prevented backup from activating
  • Bank of England used statutory powers to direct implementation of independent review

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