Thank you for your choosing us as your Servicer. This Merchant Operating Guide contains simple, easy to-read instructions for processing card transactions with us and minimizing the risk of fraud to your business.
This guide is a part of the Agreement with us. Please familiarize yourself with this guide as you are the first line of defense against fraud. Failure to comply with these guidelines and suggestions may be considered a breach of the Agreement and may result in financial loss to your business. In the event that compliance with this Merchant Operating Guide would cause you to violate applicable Payment Network Regulations and/or Laws, you should comply with such applicable Payment Network Regulations and/or Laws.
Throughout this guide terms that have specific meaning to the Card industry are noted with initially capitalized letters (e.g., Credit Card, Card Present Transactions).
Types of Cards include:
To accept Credit Cards, Debit Cards or other Cards for payment, you process the Transactions through a POS Device and/or with point-of-sale software. A group of Transactions is called a Batch, and the process of sending these Transactions to us is called Settlement.
When you settle a Batch, information for each Transaction is sent to clearing networks across the country and sometimes around the world. Based on each Card number, we send information about a Transaction to the corresponding Issuer so they can charge the Cardholder. Then, funds for the Transaction are deposited into your Demand Deposit Account (DDA). Refer to Chapter 2, Processing Transactions, for specific details about processing Transactions.
In exchange for these services, you are charged a percentage of each Transaction (known as a Discount), along with Transaction fees, Authorization fees, and any other fees specified in the Agreement. Fees are deducted from your DDA on either a monthly or a daily basis.
When a Cardholder does not agree with a Transaction posted to his or her account, the Cardholder can contact the Issuer and initiate a dispute. In this case, the Transaction amount is debited from your DDA and we send you a Chargeback notice. In order to protect your rights, it is important that you respond promptly to any Chargeback notice you receive. Refer to Chapter 6, Retrieval Requests & Chargebacks, for a detailed explanation of this process.
When you process Transactions, it is important to keep the following general guidelines in mind:
In addition to the traditional Card processing services offered, we also provide the following services:
Please contact us if you are interested in any of these services.
This Chapter explains the two steps involved in the Transaction process—Authorization and Settlement— as well as the different types of Transactions.
The first step in processing a Transaction is to request Authorization from the Issuer to accept a Card for payment. Merchant must obtain an Authorization Code before completing any Transaction. An Authorization request is made via one of the following two methods:
Most Authorizations are requested electronically. Voice Authorization is usually used if a Merchant does not have a working POS Device or if the Issuer requests additional information during Electronic Authorization.
An Authorization request is required for every Transaction to determine if:
Receipt of an Approval Code in response to an Authorization request does not:
Merchant will follow any instructions received during Authorization. Upon receipt of an Authorization Code, Merchant may consummate only the Transaction authorized and must note the Authorization Code on the Transaction Receipt. In any case in which a Transaction is completed without imprinting the Card, the Merchant, whether or not an Authorization Code is obtained, shall be deemed to warrant the true identity of the Customer as the Cardholder.
The following diagram describes the Electronic Authorization process:
Figure 2-1. Authorization Process
1. Authorization of Purchase: The Transaction process begins when a Cardholder wants to buy goods or services using a Card. Before the Transaction can be completed, the Merchant must receive an Approval Code from the Issuer.
2. Servicer Host: The Merchant’s POS Device sends the Transaction data to the Servicer Host to verify the MID, to read the Card number, and to route the information to the appropriate Issuer.
3. Issuer: The Servicer Host sends the information to the Issuer through the Discover Network, Visa, or MasterCard network, or directly to other Issuer networks (e.g., American Express). The Issuer determines whether the Transaction should be approved and sends one of the following responses back to the Servicer, who then forwards it to the Merchant:
Exception Processing
ATTN: Card Pick Up
Allegiance Merchant Services
1401 Central Avenue
Charlotte, NC 28205
4. Servicer Host: The Servicer Host receives the response from the Issuer and routes it to the Merchant.
5. Merchant: The Merchant receives the Issuer’s response from the Servicer Host and follows the appropriate steps to complete the Transaction.
For any approved amount received pursuant to an Authorization request that will not be included in a Transaction presentment for Settlement, a full or partial authorization reversal must be processed by the Merchant:
This requirement does not apply if the Merchant is properly identified with any one of the following MCCs:
The final step in processing a Transaction is Settlement, which occurs when the Merchant sends all of its Card Transactions to Servicer to receive payment. During Settlement, the Merchant is paid and Cardholders are billed for previously-approved Transactions.
NOTE: This process can take two or more business days (excluding holidays) unless you are set up for delayed funding.
The following diagram describes the Settlement process:
1. Merchant: Sends all approved, un-settled Transactions (known as the open Batch) in the POS Device to the Servicer Host to close or settle the Batch.
2. Servicer Host: Sends Visa and MasterCard Card Transactions (and, if applicable, Discover Network Transactions) to Interchange and other Card Transactions to the appropriate Issuer (e.g., American Express Transactions to American Express). If the Transactions are not sent to Interchange, go to step 4.
3. Interchange: Sends Transaction data to the appropriate Issuer.
4. Issuer: Posts the Transaction to the Cardholder’s account. The Issuer either sends to Interchange the difference between the Transaction amount and the Interchange fee charged to the Servicer, or sends the funds to the Merchant’s DDA (see step 7).
5. Interchange: Sends the difference between the Transaction amount and the Interchange Fees to the Servicer Host.
6. Servicer Host: Sends a message to the Automated Clearing House (ACH) to pay the Merchant for the Transactions.
7. Automated Clearing House (ACH): Sends the funds from Servicer to the Merchant’s DDA via electronic transfer. Fees are debited from the Merchant’s DDA on a monthly or daily basis.
Follow these guidelines when you process Transactions:
To process a Transaction, follow these steps:
1. Follow all Prompts and Enter all Data Elements. You must include required elements to receive approval for Transactions and you can include optional data elements to qualify for better Interchange rates.
For example: Under the current data requirements, Visa Business, Visa Corporate, and Visa Purchasing Card Transactions must include sales tax information to qualify for the Level II Interchange Rate, where applicable. Purchasing Cards only qualify if the customer code is also included in the Transaction.
2. Make Sure the Card is Valid. Check the Card’s expiration date and other features to ensure that the Card is valid. Refer to Chapter 4, Identifying Valid Cards for validation information. Refer to Chapter 4, Preventing Card Fraud for additional loss-prevention information.
3. Swipe the Card Through the POS Device. If the Card is successfully swiped, the POS Device may prompt you to enter the last four digits of the Card number. This process compares the account number in the Magnetic Stripe with the account number embossed on the Card.
If the POS Device cannot read the Magnetic Stripe, press the appropriate key to initiate a manual Transaction. When you are prompted by the POS Device, enter the Card number and expiration date embossed on the front of the Card. Make an Imprint of the Card on a paper Transaction Receipt to prove that the Card was present during the Transaction. Keep the Imprinted Transaction Receipt with the electronically printed Transaction Receipt from the POS Device.
Ensure that the paper Transaction Receipt contains all of the information related to the Transaction, such as the Transaction amount, Transaction Date, Merchant information, Authorization Code, and Cardholder’s signature.
4. Enter the Amount of the Transaction. When prompted by the POS Device, enter the amount of the Transaction using the numeric key pad. You do not need to include a decimal point.
For Example: Enter $125.00 by pressing the 1-2-5-0-0 keys consecutively, and then pressing the ENTER key. The POS Device displays a message that indicates when the Transaction is being processed for Authorization.
5. Obtain the Authorization Code. If the Transaction is approved, the Approval Code prints on the Transaction Receipt. If a printer is not present, the POS Device displays the Approval Code.
If you have to Imprint the Card, remember to record the Approval Code on the Transaction Receipt.
If the Transaction is declined, the POS Device displays “Declined” or “Declined-Pick-Up”. In these cases, you should ask for another form of payment.
If the POS Device displays a “Referral” or “Call Auth” message, call the toll-free Voice Authorization telephone number (located on a sticker on your POS Device) and follow the operator’s instructions. If you receive an Approval Code, you must enter it into your POS Device to complete the Transaction. If Authorization is declined, the Voice Authorization Center may ask you to retain the Card. If this occurs, follow the operator’s instructions. A reward may be paid for the return of a Card at the Voice Authorization Center’s request.
6. Have the Cardholder Sign the Transaction Receipt, and then Compare Signatures. In Card Present Transactions, Transaction Receipts must be signed by the Cardholder unless otherwise specified under separate criteria for a Credit Card Association program (e.g., No Signature Required Programs). Compare the signature on the Transaction Receipt with the signature on the back of the Card. If you cannot tell whether the signatures are similar, ask to see another form of identification and compare the second signature with the others. You may also compare the appearance of the Cardholder with the picture on his or her identification cards. Merchant must not honor any Card if: (i) the Card has expired; (ii) the signature on the Transaction Receipt does not correspond with the signature on the Card or if the signature panel on the Card is blank, or uses language to the effect of “see id”; or (iii) the account number embossed on the Card does not match the account number on the Card’s magnetic stripe. If you are still suspicious of the Transaction or the Cardholder, you may perform a Code 10 Authorization. Refer to Chapter 4, Identifying Valid Cards for more information.
7. Return the Card and the Customer Copy of the Transaction Receipt to the Cardholder. When the Transaction is complete, return the Card to the Cardholder, along with the Customer copy of the Transaction Receipt. Keep the Merchant copy of the Transaction Receipt for your records.
Surcharges. Discover Network, Visa and MasterCard permit merchants in the U.S. to add a surcharge to a Credit Card Transaction amount, subject to their respective Credit Card Rules. As a result, if permitted, Merchant may add an amount to the posted price of goods or services Merchant offers as a condition of paying with a Discover Network, Visa and MasterCard Credit Card. If Merchant is permitted to and elects to apply a surcharge to its Discover Network, Visa and MasterCard Credit Card Transactions, Merchant must abide by all Payment Network Regulations applicable to surcharging, including, but not limited to, any advance notice requirements. In addition, Merchant may be required to register with Discover Network, Visa and/or MasterCard prior to surcharging any Credit Card Transactions. Registration requirements are set forth in the applicable Credit Card Rules and may be available through the applicable Payment Network websites.
This paragraph does not prohibit Merchant from offering a discount or in-kind incentive to induce a person to pay by cash, Credit Card, Debit Card or any other method of payment.
Return Policy. Merchant must properly disclose to the Cardholder, at the time of the Transaction and in accordance with the Card Rules, any limitation Merchant has on accepting returned merchandise.
No Claim Against Cardholder. Unless Servicer or Member refuses to accept a Transaction Receipt or revokes their prior acceptance of a Transaction Receipt (after receipt of a Chargeback or otherwise): (i) Merchant will not have any claim against, or right to receive payment from, a Cardholder in any Transaction; and (ii) Merchant will not accept any payments from a Cardholder relating to previous charges for merchandise or services included in a Transaction Receipt, and if Merchant receives such payments, Merchant will promptly remit them to Servicer.
A Transaction Receipt is a paper or electronic record of the purchase of goods or services from a Merchant by a Cardholder using a Card. You must provide the Cardholder with a Transaction Receipt for his or her personal records.
Transaction Receipts are required for all Transaction types and must be retained for a minimum of two (2) years (or such longer period as the Card Rules or the Laws may require). Transaction Receipts should be stored in a safe, secure area and organized in chronological order by Transaction Date.
An Electronic Transaction Receipt must contain the following information:
For Card Present Transactions, if the following information embossed or printed on the Card is not legibly imprinted on the Transaction Receipt, Merchant will legibly reproduce on the Transaction Receipt the: (i) Cardholder’s name; (ii) Card account number; (iii) Card expiration date; and (iv) Merchant’s name and place of business.
For Card Present Transactions, if Merchant authorizes and presents Transactions electronically and Merchant’s POS Device is unable to read the Magnetic Stripe on the Card, Merchant must generate a manual Transaction Receipt containing the information set forth below under “Manual Transaction Components,” in addition to key-entering the Transaction into the POS Device for processing.
A manual Transaction Receipt must contain the following information:
NOTE: If the Cardholder presents an unembossed Card and the POS Device cannot read the Magnetic Stripe then the Merchant must request another form of payment. Manual Transaction Receipts are prohibited on Transactions involving an unembossed Card.
The Merchant must provide a complete and legible copy of the Transaction Receipt to the Cardholder in the following manner:
Electronic Commerce Transaction Receipts must not include the Card’s account number.
If Merchant utilizes electronic Authorization and/or data capture services, Merchant will enter the data related to Transactions into a POS Device and settle the Transactions and transmit the data to Servicer or its designated agent in the form specified by Servicer no later than the close of business on the date the Transactions are completed. If Member or Servicer requests a copy of a Transaction Receipt, Credit Transaction Receipt, or other Transaction evidence, Merchant must provide it within the time frame specified in the request.
Merchant will include a description and total amount of goods and services purchased in a single Transaction on a single Transaction Receipt unless: (i) partial payment is entered on the Transaction Receipt and the balance of the Transaction amount is paid in cash or by check at the time of the Transaction; or (ii) a Transaction Receipt represents an advance deposit in a Transaction completed in accordance with the Agreement and the Card Rules.
Merchant must execute one Transaction Receipt when processing the deposit Transaction and a second Transaction Receipt upon processing the balance of the Transaction. Merchant will note the words “deposit” or “balance” on the applicable Transaction Receipt, as appropriate. Merchant will not deposit the Transaction Receipt labeled “balance” until the goods have been delivered to the Cardholder or until Merchant has fully performed the services.
Merchant represents and warrants to Member and Servicer that Merchant will not rely on any proceeds or credit resulting from future delivery Transactions to purchase or furnish goods or services. Merchant will maintain sufficient working capital to provide for the delivery of goods or services at the agreed upon future date, independent of any credit or proceeds resulting from Transaction Receipts or other Credit Transaction Receipts in connection with future delivery Transactions.
Card Not Present Transactions include Mail Order (MO), Telephone Order (TO), and Electronic Commerce (EC) Transactions. These Transactions occur when the Card is not physically presented to the Merchant at the time of a sale. You must be authorized by us to process Card Not Present Transactions.
If more than twenty percent (20%) of your Transactions are MO/TO, you must apply for a separate MID for those Transactions. If more than one percent (1%) of your Transactions are Electronic Commerce orders, you must also apply for a separate MID for those Transactions.
Merchant understands that Transactions processed via MO/TO are high risk and subject to a higher incidence of Chargebacks. Merchant is liable for all Chargebacks and losses related to MO/TO Transactions. Merchant may be required to use an address verification service (“AVS”) on MO/TO Transactions. AVS is not a guarantee of payment and the use of AVS will not waive any provision of the Agreement or validate a fraudulent Transaction. Merchant will obtain the expiration date of the Card for a MO/TO Transaction and submit the expiration date when requesting Authorization of the Transaction. For MO/TO Transactions, Merchant will type or print legibly on the signature line of the Transaction Receipt the following applicable words or letters: telephone order or “TO,” or mail order or “MO,” as appropriate. Servicer recommends that Merchant obtain a signed Transaction Receipt or other proof of delivery signed by Cardholder for MO/TO Transactions.
Merchant may process Electronic Commerce Transactions only if the Transactions have been encrypted by Servicer or a third party vendor acceptable to Servicer and Member. Merchant understands that Transactions processed via the Internet are high risk and subject to a higher incidence of Chargebacks. Merchant is liable for all Chargebacks and losses related to Electronic Commerce Transactions, whether or not such Transactions have been encrypted. Encryption is not a guarantee of payment and does not waive any provision of the Agreement or otherwise validate a fraudulent Transaction. Servicer recommends that Merchant obtain a signed Transaction Receipt or other proof of delivery signed by the Cardholder for all Electronic Commerce Transactions. All communication costs and compliance with Laws related to Electronic Commerce Transactions will be Merchant’s responsibility. Merchant understands that Servicer will not manage the telecommunications link for Electronic Commerce Transactions and that it is Merchant’s responsibility to manage that link. Merchant authorizes Servicer and Member to perform an annual audit and examination of Merchant’s website and such other due diligence review as required by the Payment Network Regulations for Electronic Commerce Merchants.
Requirements. Merchant’s website must contain all of the following information: (a) prominently display the name of the Merchant; (b) prominently identify the name of the Merchant as displayed on the website as both the Merchant and as the name that will appear on the Cardholder statement; (c) display Merchant name information as prominently as any other information depicted on the website, other than images of the products or services being offered for sale; (d) complete description of the goods or services offered; (e) returned merchandise and refund policy; (f) customer service contacts, including electronic mail address and/or telephone number; (g) complete address (street address, city, state, zip code, and country) of the permanent establishment of the Merchant’s business; (h) complete address of the permanent establishment of the Merchant’s business on either the checkout screen (which displays the total purchase amount) or within the sequence of website pages presented to the Cardholder during the checkout process; (i) Transaction currency (such as U.S. or Canadian dollars); (j) export or legal restrictions, if known; (k) delivery policy; (l) Customer data privacy policy; and (m) Merchant’s method of Transaction security such as Secure Sockets layer (SSL) or 3-D Secure. If Merchant stores Card account numbers, expiration dates, or other personal Cardholder data in a database, Merchant must follow the applicable Payment Network Regulations on securing such data. Merchant may not retain or store CVV2/CVC2/CID data after authorization for record keeping or additional authorization processing. A Merchant must not refuse to complete an Electronic Commerce Transaction solely because the Cardholder does not have a digital certificate or other secured protocol.
Shipped Goods. For goods to be shipped on Electronic Commerce Transactions, Merchant may obtain authorization up to seven (7) days prior to the shipment date. Merchant need not obtain a second authorization if the Transaction Receipt amount is within fifteen percent (15%) of the authorized amount, provided the additional amount represents shipping costs.
Card Not Present Transactions pose a higher risk of fraud and Chargebacks, so it is important that you take precaution in processing these Transactions. Follow these guidelines prior to processing a Card Not Present Transaction, as applicable:
NOTE: You must not retain or record the CVV2/CVC2/CID data element beyond the original Authorization request. Further, the CVV2/CVC2/CID data element must not be printed on the Transaction Receipt or on any document given to the Cardholder.
In addition to the Transaction Receipt requirements set out in Chapter 2, Processing Transactions, a Card Not Present Transaction Receipt must also contain:
Do not settle a Transaction before shipping the goods. This increases the risk of a Chargeback to the Merchant and is prohibited by the Agreement.
Do not retain magnetic stripe data except for first time use.
Follow these steps for manual Transaction Receipts:
1. Write the Cardholder’s Name and Card Number on the Transaction Receipt. Refer to Chapter 2, Processing Transactions – Electronic Transaction Components for information on Transaction Receipt requirements. In addition to the electronic Transaction components requirements, a manual Transaction Receipt for a Card Not Present Transaction may include the full Card account number and expiration date and must include the Cardholder’s billing address (and shipping address, if different) and telephone number. Do not record CVV2/CVC2/CID data elements on the Transaction Receipt.
2. Record the Order Type on the Transaction Receipt. Write one of the following on the signature line of the Transaction Receipt:
If you are using a POS Device to generate a Transaction Receipt for a Card Not Present Transaction, enter the Transaction into the device by following these steps:
1. Press the appropriate key on your POS Device to initiate the Transaction.
2. When prompted, enter the Card number.
3. When prompted again, enter the Card expiration date.
4. Finally, when prompted, enter the Transaction amount.
5. Record the Authorization Code on the Transaction Receipt. Refer to Chapter 2, Processing Transactions – Transaction Receipts for more information.
The use of CVV2/CVC2/CID and AVS can lessen your risk of Chargebacks by providing you with additional information to assist with your decision on whether or not to process a Card Not Present Transaction.
NOTE: The use of CVV2/CVC2/CID and AVS will not relieve you of liability for Chargebacks. Remember, you bear the risk of loss associated with any Chargeback.
If you are using these services, follow the next two steps prior to processing a Transaction.
1. Verify the Card Identification Number (CVV2/CVC2/CID) Printed on the Front or Back of the Card (at the end of the Card Account Number in the Signature Panel), as Applicable to the Specific Card Type. If your POS Device is set up for CVV2/CVC2/CID and if the CVV2/CVC2/CID number is provided at the time of Authorization, the Issuer returns either a “match” or a “no match” response. “Match” means it is more likely that the Card is present and in the hands of the Cardholder at the time of the Transaction. “No match” means you should consider whether or not to process the Transaction. Even though you receive an Approval Code with a “no match” response, the Approval Code is not a guarantee of payment. The decision to process a Transaction, regardless of the response received, is up to you, because you are responsible for any risk associated with processing a Transaction.
NOTE: You must not retain or record the CVV2/CVC2/CID data element beyond the original Authorization request. Further, the CVV2/CVC2/CID data element must not be printed on the Transaction Receipt or on any document given to the Cardholder.
Most Customers do not know where the CVV2/CVC2/CID code is located on the Card. To assist a Customer, have him or her locate the last three (or four) alphanumeric characters in the signature panel on the back of his or her Card for Discover Network, Visa or MasterCard Card types or on the front of his or her Card for American Express Card types.
Refer to Chapter 4, Unique Card Characteristics, for more details concerning the Card Identification Number. The following table sets forth CVV2/CVC2 response codes.
| Code | Definition |
| Space | CVV2 processing not requested |
| M | CVV2/CVC2 Match |
| N | CVV2/CVC2 not matched |
| P | Not processed |
| S | CVV2 should be printed on the card, but it was indicated that the value was not present |
| U | Issuer does not support CVV2 |
| X | Service provider did not respond |
2. Verify the Cardholder’s Address by Using the Address Verification Service (AVS). If your POS Device is set up for AVS, it prompts you to enter the numeric portion of the Cardholder’s billing address and the five digit zip code to verify that the individual providing the Card account number is the Cardholder. The AVS result code indicates whether the address given by the Cardholder matches (exactly, partially, or not at all) the address that the Issuer has on file for the Card. “Exactly” means it is more likely that the Card is being used by the authorized Cardholder. “Partially” or “not at all” means you should consider whether or not to process the Transaction. The decision to process a Transaction, regardless of the response received, is up to you, as you are responsible for any risk associated with processing a Transaction. Even though you will receive an Approval Code following a “no match” response, the Approval Code is not a guarantee of payment. The following table sets forth AVS response codes.
| Code | Definition |
| A | Address (street) matches – ZIP Code does not |
| B | Street address match, postal code in wrong format (international issuer) |
| C | Street address and postal code in wrong formats |
| D | Street address and postal code match (international issuer) |
| E | Error response for Merchant Category Code (SIC) |
| G | Card issued by a non-U.S. issuer that does not participate in the AVS system |
| I | Address information not verified by international issuer |
| M | Street address and postal code match (international issuer) |
| N | No match on address (street) or ZIP Code |
| O | No response sent |
| P | Postal codes match, Street address not verified due to incompatible formats |
| R | Retry, system is unavailable or timed out |
| S | Service not supported by issuer |
| U | Address information is unavailable (domestic issuer) |
| W | Nine-digit ZIP Code matches – Address (street) does not match |
| X | Exact AVS Match |
| Y | Address (Street) and five digit Zip match |
| Z | Five-digit zip matches – address (street) does not match |
NOTE: For more information about CVV2/CVC2/CID and AVS, contact Merchant Services.
For more information about processing Card Not Present Transactions, call the following numbers:
The information provided by calling these numbers may allow you to verify a Cardholder’s address and obtain the Issuer’s telephone number.
We supply you with the materials and forms that you need to process Discover Network, Visa or MasterCard Transactions using paper drafts. You must maintain a supply of these materials. Refer to Chapter 24, Supplies for more information.
Before you process a paper draft, please follow the guidelines under Transaction Processing Proceduresearlier in this Chapter.
To correctly process a paper Transaction Receipt, follow these steps:
1. Make Sure the Card is Valid. Check the Card’s expiration date and other features to ensure that the card is valid. Refer to Chapter 4, Identifying Valid Cards for validation information. Refer to Chapter 4, Preventing Card Fraud for additional loss-prevention information.
2. Imprint the Transaction Receipt. Make a legible Imprint of the Card on all copies of the Transaction Receipt.
3. Call for Authorization. Call the Voice Authorization number provided on the sticker on your POS Device and have the following information available:
4. Write the Approval Code in the Space Provided on the Transaction Receipt. The Approval Code is required.
5. Have the Cardholder Sign the Transaction Receipt, and then Compare Signatures. Compare the signature on the Transaction Receipt with the signature on the back of the Card. If you cannot tell whether the signatures are similar, ask to see another form of identification and compare the second signature with the others. You may also compare the appearance of the Cardholder with the picture on his or her identification cards. If you are still suspicious of the Transaction or the Cardholder, you may perform a Code 10 Authorization. Refer to Chapter 4, Identifying Valid Cards for more information.
6. Return the Card and the Cardholder Copy of the Transaction Receipt to the Cardholder. When the Transaction is complete, return the Card to the Cardholder, along with the Cardholder copy of the Transaction Receipt. Make sure to keep the Merchant copy of the Transaction Receipt for your records.
7. Storage of Paper Drafts. It is important to keep copies of your Transaction Receipts in a safe place, filed by Transaction Date. This is especially important for quickly locating a receipt if questions arise. The PCI Data Security Standard sets out the requirements on how to handle the storage of paper drafts that contain Cardholder information.
Visit http://www.pcisecuritystandards.org/security_standards/pci_dss.shtml or contact Customer Service at 1-800-725-1243 for more information.
Credit Transaction Receipt. Merchant must issue a Credit Transaction Receipt, instead of issuing cash or a check, as a refund for any previous Transaction. Member or Servicer will debit the DDA for the total face amount of each Credit Transaction Receipt submitted to Servicer. Merchant must not submit a Credit Transaction Receipt relating to any Transaction Receipt not originally submitted to Servicer, and Merchant must not submit a Credit Transaction Receipt that exceeds the amount of the original Transaction Receipt. Merchant must, within the time period specified by applicable Laws or the Card Rules, whichever time period is shorter, provide Servicer with a Credit Transaction Receipt for every return of goods or forgiveness of debt for services that was the subject of a previous Transaction in accordance with the Card Rules.
Revocation of Credit. Member or Servicer may, in their reasonable discretion, refuse to accept any Credit Transaction Receipt for processing.
Reprocessing. Merchant must not resubmit or reprocess any Transaction that has been charged back.
Refunds for a Transaction must be processed by issuing a credit to the Card on which the original purchase was made. You must also prepare a Credit Transaction Receipt for the amount of credit issued. Do not refund a Card purchase with cash or check. Do not refund cash or check purchases to a Card.
If you have a special policy regarding returns or refunds, make sure that the policy is:
If you are processing an even exchange, no action is necessary. However, if an exchange involves merchandise of greater or lesser value, you must issue a Transaction Receipt or a Credit Transaction Receipt for the difference. If you prefer, you may instead give a full refund to the Cardholder for the original Transaction amount and process the exchange as a new Transaction.
With respect to Debit Card, PIN-authorized Debit Card, and Prepaid Card Transactions, Merchants operating in the Merchant Category Codes in the table below must:
1. For all Card Present Transactions occurring at an attended POS Device or at a Cardholder-activated POS Device identified with MCC 5542 (Automated Fuel Dispensers), support partial approvals;
2. For all Transactions, support full and partial reversals; and
3. For all Card Present Transactions occurring at an attended POS Device and conducted with a Prepaid Card, support account balance responses;
each as further described below.
| MCC |
| 4111 Transportation—Suburban and Local Commuter Passenger, including Ferries |
| 4812 Telecommunication Equipment including Telephone Sales |
| 4814 Telecommunication Services |
| 4816 Computer Network/Information Services |
| 4899 Cable, Satellite, and Other Pay Television and Radio Services |
| 5111 Stationery, Office Supplies |
| 5200 Home Supply Warehouse Stores |
| 5300 Wholesale Clubs |
| 5310 Discount Stores |
| 5311 Department Stores |
| 5331 Variety Stores |
| 5399 Miscellaneous General Merchandise Stores |
| 5411 Grocery Stores, Supermarkets |
| 5499 Miscellaneous Food Stores — Convenience Stores, Markets, Specialty Stores and Vending Machines |
| 5541 Service Stations (with or without Ancillary Services) |
| 5542 Fuel Dispenser, Automated |
| 5732 Electronic Sales |
| 5734 Computer Software Stores |
| 5735 Record Shops |
| 5812 Eating Places, Restaurants |
| 5814 Fast Food Restaurants |
| 5912 Drug Stores, Pharmacies |
| 5921 Package Stores, Beer, Wine, and Liquor |
| 5941 Sporting Goods Stores |
| 5942 Book Stores |
| 5943 Office, School Supply and Stationery Stores |
| 5964 Direct Marketing—Catalog Merchants |
| 5965 Direct Marketing—Combination Catalog—Retail Merchants |
| 5966 Direct Marketing—Outbound Telemarketing Merchants |
| 5967 Direct Marketing—Inbound Telemarketing Merchants |
| 5969 Direct Marketing—Other Direct Marketers—not elsewhere classified |
| 5999 Miscellaneous and Specialty Retail Stores |
| 7829 Motion Picture-Video Tape Production-Distribution |
| 7832 Motion Picture Theaters |
| 7841 Video Entertainment Rental Stores |
| 7996 Amusement Parks, Carnivals, Circuses, Fortune Tellers |
| 7997 Clubs—Country Membership |
| 7999 Recreation services—not elsewhere classified |
| 8011 Doctors — not elsewhere classified |
| 8021 Dentists, Orthodontists |
| 8041 Chiropractors |
| 8042 Optometrists, Ophthalmologists |
| 8043 Opticians, Optical Goods, and Eyeglasses |
| 8062 Hospitals |
| 8099 Health Practitioners, Medical Services — not elsewhere classified |
| 8999 Professional Services—not elsewhere classified |
| 9399 Government Services —not elsewhere classified |
Partial Approvals. When a Debit Card, PIN-authorized Debit Card, or Prepaid Card Authorization request is sent, the issuer can respond with an approval amount less than the requested amount. When the approved amount is less than the originally requested amount, Merchant should prompt the Customer to pay the difference with another form of payment. If the Customer does not wish to proceed with all or part of the Transaction (or if the Transaction “times out”), the Merchant must initiate an authorization reversal Transaction.
Full and Partial Authorization Reversals. An “authorization reversal” is a real-time Transaction initiated when the Customer decides that it does not want to proceed with the Transaction or if the Merchant cannot complete the Transaction for any reason (e.g., the item is out of stock, the Transaction “times out” while waiting for the Authorization response, etc.). To initiate an authorization reversal, the Transaction must have already been authorized but not submitted for Settlement. If the Transaction has already been submitted for clearing, then the Merchant should initiate a void, refund, or other similar Transaction so that the Customer’s open-to-buy is freed up and the available balance is restored. A partial authorization reversal should be initiated whenever the Merchant determines that the final Transaction amount will be less than the amount of the Authorization.
Authorization reversals must be processed by the Merchant within 24 hours of the original Authorization request for Card Present Transactions and within 72 hours of the original Authorization Request for Card Not Present Transactions; provided, however, that Merchants in hotel, lodging, cruise line and vehicle rentals are exempt from this requirement.
Account Balance Response. For some Prepaid Cards, the Issuer is required to include the remaining available balance on the Cardholder’s account in the Authorization response message. If the remaining available balance is included, the Merchant must print it on the Transaction Receipt or display it on a Customer facing POS Device.
Debit Card Rules. Merchant shall comply with and be bound by the Debit Card Rules, which are incorporated by this reference as if fully set forth herein. Except as otherwise provided below, Merchant must comply with the general Card acceptance and Transaction processing provisions in this Chapter when accepting Debit Cards. The Debit Card Rules are confidential information of the Payment Networks, and Merchant shall not disclose the Debit Card Rules to any Person except as may be permitted under the Agreement or under requirements of Laws.
Use and Availability of POS Devices and PIN Pads.
No Minimum or Maximum. Merchant shall not establish minimum or maximum Debit Card Transaction amounts except to establish a maximum cash back dollar amount not to exceed $200.00 or such lower amount as may be required under applicable Payment Network Rules.
Pre-Authorization Requests. Merchant may initiate pre-authorization requests pursuant to the following procedures:
Debit Card Transactions. Merchants that accept PIN-authorized Debit Cards shall support the following Debit Card Transactions:
Merchant may also support the following Debit Card Transactions if supported by the applicable EFT Network:
Prohibited Transactions. Merchant shall initiate Transactions only for products or services approved by Servicer. In no event shall Merchant initiate, allow, or facilitate a gambling or gaming transaction, or fund a stored value account for such purposes.
Transaction Receipt Requirements. At the time of any Debit Card Transaction (other than a balance inquiry or pre-authorization request), Merchant shall make available to each Cardholder a Transaction Receipt that complies fully with all Laws and containing, at a minimum, the following information:
Merchandise Returns. Merchant may electronically perform a merchandise return (if permitted by the applicable EFT Network) for a Debit Card Transaction only at the same Merchant named on the Transaction Receipt where the original Debit Card Transaction was initiated. If permitted, a merchandise return requires the following procedures:
For all merchandise returns or any other debit return initiated through Merchant’s POS Device or account, Merchant bears all responsibility for such Transaction even if fraudulent.
Balance Inquiries. Merchant may accommodate balance inquiries if the applicable EFT Network and the Issuer support the balance inquiry function, provided that the Merchant requires that the Cardholder enter their PIN on the PIN Pad and insert and “swipe” the Debit Card through the POS Device.
Purchase with Cash Back. Merchant may offer purchase with cash back Transactions pursuant to the following procedures:
Technical Problems. Merchant shall ask a Cardholder to use an alternative means of payment if the Servicer Debit System, the POS Device, or the PIN Pad is inoperative, the electronic interface with any EFT Network is inoperative, or the magnetic stripe on a Debit Card is unreadable, and Merchant elects not to or is unable to store Debit Card Transactions.
Adjustment. A Debit Card Transaction may be adjusted if an error is discovered during Merchant’s end- of-day balancing only by means of a written request from Merchant to Servicer. The request for adjustment must reference a settled Debit Card Transaction that is partially or completely erroneous or a denied pre- authorize Transaction for which the pre-authorization request was approved. An adjustment must be completed within forty-five (45) days after the date of the original Debit Card Transaction.
Termination/Suspension. When requested by any EFT Network, in its sole discretion, Merchant will immediately take action to: (i) eliminate any fraudulent or improper Transactions; (ii) suspend the processing of Debit Card Transactions; or (iii) entirely discontinue acceptance of Debit Card Transactions.
Acceptance of Internet PIN-Based Card Transactions. This section describes certain special requirements applicable to Internet PIN-Based Card Transactions. Except as specifically provided in this section, Merchant shall comply with the general provisions of this Chapter regarding PIN-authorized Debit Card Transactions with respect to Internet PIN-Based Card Transactions. For the avoidance of doubt, Internet PIN-Based Card Transactions are Card Not Present Transactions. Therefore, notwithstanding anything in this Merchant Operating Guide to the contrary, Merchant is not required to “swipe” a Card in conjunction with any Internet PIN-Based Card Transaction and the Cardholder and the Card are not required to be present at the time of the sale.
International Network Requirements. If Merchant supports Internet PIN-Based Card Transactions, Merchant shall comply with and be bound by the International Network Requirements and Internet PIN- Based Card Transaction Documentation, which are incorporated by this reference as if fully set forth herein. The International Network Requirements and Internet PIN-Based Card Transaction Documentation are confidential information of the International Networks or of Servicer, as applicable, and Merchant shall not disclose the International Network Requirements or the Internet PIN-Based Card Transaction Documentation to any Person except as may be permitted under the Agreement or under requirements of Laws.
Use and Availability of Internet PIN Pads.
Transaction Receipt Requirements. Merchant shall ensure that any receipt provided for an Internet PIN-Based Card Transaction includes:
Refunds / Cashback / Balance Inquiries. If permitted by the applicable International Network or EFT Network, Merchant may electronically perform a merchandise return or refund for an Internet PIN-Based Card Transaction. However, credits, balance inquiries and purchases with cash back cannot be performed as Internet PIN-Based Card Transactions.
Technical Problems. Merchant shall ask a Cardholder to use an alternative means of payment if the Servicer Debit System, the Internet PIN Pad, or the electronic interface with any EFT Network or International Network is inoperative.
Merchant may solicit the following other Transaction types provided that (a) Merchant discloses such method of processing to Servicer in the Merchant Application or otherwise in writing, (b) Merchant has been approved by Servicer to submit such Transactions, and (c) Merchant meets the additional requirements for the applicable type of Transaction set out below. If Merchant completes any of these Transaction types without having received Servicer’s approval, then Merchant will be in breach of the Agreement and Servicer may terminate the Agreement in addition to any other remedies available under the Agreement, Laws, or Payment Network Regulations, and Merchant may pay a surcharge on each such Transaction.
Recurring Payments are Transactions for which a Cardholder provides written permission or electronic authorization to a Merchant to periodically charge his or her Card for recurring goods or services (e.g., monthly membership fees, utility bills, insurance premiums, or subscriptions). When processing Recurring Payments, you must obtain a separate Authorization Code for each Transaction.
Pre-authorized Orders are Transactions in which the Cardholder provides written or electronic authorization to charge his or her Card, one or more times, at a future date. You must be authorized by us to process Pre-authorized Orders.
You must obtain a signed order form or other written agreement from the Cardholder for all Recurring Payments and Pre-authorized Orders. The order form or agreement must contain the following information:
You must keep a copy of the order form or written agreement for the duration of the recurring service. You must also provide a copy of the order form or agreement for Recurring Payments or Pre-authorized Orders to us upon request. A new order form or written agreement with the Cardholder is needed when a Recurring Payment is renewed.
Recurring Transaction Requirements. Merchant will not complete any recurring Transaction after receiving: (i) a cancellation notice from the Cardholder; (ii) a notice from Servicer or Member that authority to accept recurring Transactions has been revoked; or (iii) a response that the Payment Device is not to be honored. Merchant is responsible for ensuring its compliance with Laws with respect to recurring Transactions.
Limitations on the Resubmission of Recurring Transactions. In some limited instances, Merchant may resubmit a declined preauthorized recurring Transaction up to four (4) times within sixteen (16) calendar days of the original Authorization request, provided that the decline response is one of the following: (i) authorization denied; (ii) insufficient funds; (iii) exceeds approval amount limit; or (iv) exceeds withdrawal frequency.
Recurring Transaction Receipts. Merchant must print legibly on the Transaction Receipt the words “Recurring Transaction.” Merchant must obtain the Cardholder’s signature, which may be an electronic signature or other similar authentication that is effective under applicable Laws, on the Transaction Receipt. Merchant must also include the frequency and duration of the Recurring Transaction authorization, as agreed to by the Cardholder, on the Transaction Receipt.
Electronic Commerce Recurring Transactions. In addition to the above, for an Electronic Commerce Transaction, Merchant must also provide a simple and easily accessible online cancellation procedure that complies with Laws, if the Cardholder’s request for goods or services was initially accepted online.
Recurring Transactions with Varying Amounts. For Recurring Transactions of varying amounts, all of the following apply: (i) the order form must allow the Cardholder to specify a minimum and maximum Transaction amount to be charged, unless the Cardholder will be notified of the amount and date of each charge, as specified in the remainder of this section; (ii) Merchant must inform the Cardholder of their right to receive, at least ten (10) calendar days prior to each scheduled Transaction Date, written notification of the amount and date of the next charge; and (iii) the Cardholder may choose to receive the notification in any of the following ways: (a) for every charge; (b) when the Transaction amount does not fall within the range of amounts specified on the order form; or (c) when the Transaction amount will differ from the most recent charge by more than an agreed upon amount. Merchant is responsible for ensuring that all communications with, and disclosures to, Cardholders comply with Laws.
To perform a Pre-authorized Order, follow these specific guidelines:
While you may process the Transaction for the “Deposit” before delivery of the goods and/or services, you may not process the “Balance” of the Transaction until the goods and/or services are delivered.
Quasi-Cash Transactions represent the sale of items that are directly convertible to cash. Examples of Quasi-Cash Transactions include:
You must be authorized by us to process Quasi-Cash Transactions. No Merchant may process a Quasi- Cash Transaction as a cash disbursement.
In addition to the general requirements described in Chapter 2, Transaction Receipts, Merchants processing Quasi-Cash Transactions must:
The Contactless Transaction requirements are as follows:
Participation. Merchant is responsible for:
1. Ensuring that all POS Devices that accept Contactless Cards for Transactions meet the applicable Credit Card Association specifications, are approved by Servicer and/or the applicable Credit Card Associations for use with Contactless Cards, and are configured to transmit the data elements required for Contactless Transactions.
2. Complying with all Payment Network Regulations applicable to Transactions conducted with Contactless Cards, including all operating requirements, technical guides and other requirements specified by the applicable Credit Card Associations in connection with the acceptance of Contactless Cards.
Registration. It is Merchant’s responsibility to ensure that it is eligible and has been approved by Servicer to accept Contactless Cards, and that Merchant has been registered with the applicable Credit Card Associations to participate in their respective Contactless Card payment program(s).
Processing. Merchant is responsible for:
1. Providing any data in the Authorization request as required by the applicable Credit Card Associations.
2. Transmitting the full and unaltered contents of Track 1 or Track 2 data of the Card’s Magnetic Stripe or Contactless payment chip in the Authorization request.
3. Ensuring that Transactions are not processed as Contactless Transactions if currency conversion is performed.
4. Submitting only a single Authorization per clearing Transaction.
Merchants that are eligible for both a Credit Card Association’s No Signature Requirement Program and to accept Contactless Cards may combine these programs to further enhance the benefits of accepting Contactless Cards and participating in a No Signature Required Program.
Chapter 3
This Chapter describes how to settle your daily Transactions. The guidelines for Settlement within this Chapter can help you:
To settle the daily Batch, perform the following steps:
1. Total the day’s Transaction Receipts and Credit Transaction Receipts.
2. Verify that the Transaction Receipts equal the POS Device totals. You may print a report from your POS Device to assist you with balancing. For more information about balancing, refer to the instructions that came with your POS Device.
If the totals do not balance, then do the following:
3. Close the Batch according to the instructions for your POS Device.
NOTE: Submit your Transactions for processing daily to obtain the most favorable pricing.
If you are not using a POS Device, you must deposit Discover Network, Visa and MasterCard Transaction Receipts or Credit Transaction Receipts within three (3) business days, except:
1. The Transaction Receipts or Credit Transaction Receipts must not be presented until after the products are shipped or the services are performed unless, at the time of the Transaction, the Cardholder agrees to a properly disclosed delayed delivery of the products or services.
2. When the Merchant receives Cardholder authorization for a delayed presentment (in which case the words “Delayed Delivery” must be noted on the Transaction Receipt or Credit Transaction Receipt).
3. When the Merchant is obligated by law to retain the Transaction Receipt or Credit Transaction Receipt or return it to a Customer upon timely cancellation, in which case the Merchant should present the record within ten (10) business days after the Transaction date.
4. When the Merchant has multiple locations and uses a central facility to accumulate and present records to Servicer, in which event the Merchant must present the record in accordance with applicable law and, in any event, within thirty (30) calendar days of the Transaction date.
Please include a Batch Header with your Transaction Receipts.
To prepare a paper deposit, follow these steps:
1. Place your Merchant Identification Card and the Batch Header in the Imprinter.
2. Imprint the information onto the Batch Header.
3. Enter the total number and dollar amount of Transaction Receipts. It is not necessary to separate the Discover Network, Visa and MasterCard Transaction Receipts.
4. Enter the total number and dollar amount of Credit Transaction Receipts.
5. Review the Transaction Receipts and Credit Transaction Receipts to make sure they bear legible Discover Network, Visa or MasterCard numbers and amounts. Visa uses 16-digit account numbers beginning with a “4” and MasterCard uses 16-digit account numbers beginning with a “5.” Discover Network uses 16-digit account numbers beginning with a “6.”
6. Enter the net amount of the Transaction Receipts and the Credit Transaction Receipts.
7. Fill in the date and your DDA (Demand Deposit Account) number.
8. Place the bank copy of all Transaction Receipts and Credit Transaction Receipts behind the Batch Header and insert them into the Merchant deposit envelope, which is addressed to the paper processing center. If you need additional Merchant deposit envelopes, please contact Merchant Services.
9. Retain a copy of the Batch Header, along with your copies of the Transaction Receipts and Credit Transaction Receipts for your records.
10. Make sure the paper processing center address is on the front of the envelope.
11. Mail the Merchant deposit envelope.
12. Store paper drafts appropriately. For storage requirements for paper drafts in compliance with the PCI Data Security Standard, visit: http://www.pcisecuritystandards.org/security_standards/pci_dss.shtml.
If we detect an imbalance between your Batch Header and the attached Transaction Receipts, we make an adjustment to your DDA and send you an adjustment notice. Remember, adjustments differ from Chargebacks. If you have any questions concerning an adjustment, contact Merchant Services.
The most common reasons for adjustments include:
Remember to reconcile your monthly Merchant Statements with your DDA statement, along with any adjustment notices you may have received.
Chapter 4
It is important to take steps to educate yourself and your staff to reduce your risk of accepting a counterfeit or fraudulent Card Transaction. Remember that you are responsible for all Chargebacks, including those for fraudulent Transactions. Fraudulent Card sales involve an invalid Card account number or, more commonly, a valid Card number presented by an unauthorized user. Fraud normally occurs within hours of the loss, theft, or compromise of a Card number or Card, and before most victims report the Card missing or discover the compromise.
If a Transaction is declined, do not request a Code 10 Authorization and do not complete the Transaction. However, if you receive an Approval Code but suspect a Card has been altered or is counterfeit, call the Voice Authorization Center and request a Code 10 Authorization (see Chapter 5, Code 10 Procedures).
The following sections provide tips to assist you in protecting yourself against fraud losses.
Common sense is the best guide for spotting suspicious behavior. Be sure you combine watchfulness with proper Card identification and validation techniques.
Be aware of customers who:
The increased use of Electronic Commerce, mail, and telephone orders has resulted in an increasing amount of fraud. If you accept Card Not Present Transactions, take caution if a customer attempts to:
You should be particularly careful if you sell products that are easily resold. For example, computers and computer equipment, printer cartridges, and jewelry are more susceptible to fraud than perishable items such as food—although criminals can victimize virtually any type of business.
NOTE: If you receive an order for a large purchase for delivery to a foreign country or to a freight forwarder, we recommend that you contact your Voice Authorization Center to request a Code 10 specifically identifying the Transaction as a large foreign shipment Transaction.
Cards share similar qualities to help identify their validity, and there are anti-fraud safeguards unique to each Card brand.
You should not accept a Card that is not signed. Many Card users write “Use other ID” (or something similar) in the signature panel because they believe it provides a higher level of security. This is not actually true, it simply allows a thief to sign his or her own name or use a fake ID with any signature.
If an unsigned Card is presented to you:
1. Inform the customer that the Card must be signed.
2. Have the customer sign the Card in your presence and provide a current, valid government ID that has been signed (such as a passport or driver’s license). Do not accept a temporary form of ID, such as a temporary driver’s license that does not have a photo.
3. Compare the signature on the ID to that on the Card.
4. If the customer refuses to sign the Card, do not complete the Transaction. Remember, you are liable for any Transaction processed with a fraudulent Card.
After you swipe a Card, the POS Device prompts you for specific information. The POS Device may also prompt you to enter the last four digits of the account number to verify that the embossed account number matches the number on the Magnetic Stripe (on the back of the Card). If the numbers do not match, the POS Device indicates a mismatch of the digits or an invalid Card. Do not accept the Card. Once you receive an Approval Code, verify that the Card number on the Transaction Receipt matches the number embossed on the Card. If it does not match, do not accept the Card.
These characteristics typically apply to most Card brands.
For the unique Card design elements specific to the Cards, please visit the following Card websites.
The following section identifies common Card tampering techniques. Although an American Express Card is used in the examples, these tampering methods are widespread among all Card types.
Characteristics of fraudulent Embossing include:
Figure 4-5. Example of Fraudulent Embossing
Characteristics of altered Magnetic Stripes include:
Be aware – not all Card fraud is committed by Customers. Sometimes employees engage in fraud using the following activities:
NOTE: Most POS Device products allow a Merchant to require a password in order to process a Credit Transaction.
To help prevent employee-related fraud, do the following:
Factoring (also known as Laundering) occurs when you process another person’s transactions through your Merchant account. Processing transactions which belong to another person or business is in violation of the Agreement and is prohibited by law in many states. Factoring may result in the termination of your Card acceptance privileges.
Be wary of the “fellow business person” who offers to pay you to process card transactions in return for a fee. These transactions are often questionable or fraudulent. These schemes typically result in a flood of Chargebacks which are debited from your DDA. By the time you realize this has occurred, the other business will most likely have relocated under a different name.
To protect you from these schemes and the devastating losses that ensue, educate yourself and your staff about this serious problem and immediately report Factoring propositions to us or to the U.S. Secret Service. Remember, you are responsible for all transactions processed using your MID, so make sure that all transactions processed through your account represent transactions between you and the Cardholder.
Merchant will not present for processing or credit, directly or indirectly, any Transaction not originated as a result of a transaction directly between Merchant and a Cardholder or any Transaction Merchant knows or should know to be fraudulent or not authorized by the Cardholder. Perpetrators of fraudulent Transactions will be referred to law enforcement officials. Merchant will not deposit any Transaction Receipt representing the refinancing of an existing obligation of a Cardholder.
Chapter 5
Code 10 is a term used by the Credit Card Associations to refer to suspicious or questionable Transactions, Cards, or Cardholders.
If you are suspicious of a Card Transaction, contact your Voice Authorization Center and request a Code 10 Authorization. Using the term “Code 10” allows you to call the Voice Authorization Center to question the Transaction without alerting the Cardholder. Follow the instructions given to you on how to proceed to minimize any discomfort between you and the Cardholder.
NOTE: Be alert to individuals who contact your business via phone or the Internet attempting to make large purchases for overseas shipment, direct or through a freight forwarder. These individuals may utilize one or more Cards in their “urgent” request. If you receive such a request, we encourage you to contact your Voice Authorization Center to request a Code 10, specifically identifying the Transaction as a large foreign shipment Transaction.
NOTE: Fraudulent transactions, even when authorized, are subject to Chargebacks, and final payment is not guaranteed.
To request a Code 10 Authorization for a Discover Network, Visa or MasterCard Transaction, call the telephone number on your Voice Authorization sticker (located on the POS Device). To request a Code 10 Authorization for American Express, call one of the following numbers:
If you are informed that a Card has been reported lost or stolen, or is otherwise invalid, do not complete the Transaction.
Card Recovery. If Merchant chooses to recover any Card, Merchant will use reasonable, peaceful means to recover any Card: (i) on Visa Cards, if the printed four digits below the embossed account number do not match the first four digits of the embossed account number; (ii) if Merchant is advised by Member (or its designee), the Issuer, or the designated voice authorization center to retain it; (iii) if Merchant has reasonable grounds to believe the Card is lost, stolen, counterfeit, fraudulent, or otherwise invalid, or its use is not authorized by the Cardholder; or (iv) for MasterCard Cards, if the printed four digits below the embossed account number do not match the first four digits of the embossed account number, or the Card does not have the “Twin Globes” hologram on the lower right corner of the Card face.
If you are instructed to retain the Card, follow these procedures:
Exception Processing
ATTN:Card Pick Up
Allegiance Merchant Services, Inc.
1401 Central Avenue
Charlotte, NC 28205
NOTE: Do not challenge the Card user. Avoid any physical confrontation with anyone who may be using a lost, stolen, or otherwise invalid Card. Do not jeopardize your safety or that of your employees or Customers.
Once the person leaves your location, note in writing his or her physical characteristics and any other relevant identification information. Keep in mind that a reward may be offered by the Issuer for the recovery and return of a lost, stolen, or otherwise invalid Card.
Chapter 6
A Cardholder or Issuer may dispute a Transaction for any number of reasons, including a billing error, a quality dispute, or non-receipt of goods and/or services. This Chapter describes the process for handling disputed Transactions by explaining Retrieval Requests and Chargebacks.
Disputes With Cardholders. All disputes by any Cardholder relating to any Transaction will be settled between Merchant and the Cardholder. Neither Servicer nor Member bears any responsibility for such Transactions or disputes, other than with respect to processing Chargebacks under the Payment Network Regulations.
Merchant is fully responsible for all Retrieval Requests and Chargebacks under the Payment Network Regulations. Upon receipt of a Retrieval Request or Chargeback from a Payment Network, Servicer and Member will forward such request or documentation to Merchant. Merchant is responsible for responding, as appropriate, to each Retrieval Request or Chargeback, including providing a copy of the relevant Transaction Receipt to Servicer. In addition, Merchant will cooperate with Servicer and Member in complying with the Credit Card Rules and Debit Card Rules regarding Retrieval Requests and Chargebacks. The following is a non-exhaustive list of reasons for which Merchant may incur a Chargeback. It is not a complete list of Chargeback reasons and is intended only to provide the most commonly encountered situations where a Chargeback may occur:
A Retrieval Request is made by the Issuer on behalf of the Cardholder for a copy of the Transaction Receipt. A Retrieval Request (also known as a Copy Request) most often occurs when a Cardholder:
The Retrieval Request notice you receive will include the following information to help you identify the Transaction:
We suggest you maintain Transaction Receipts in chronological order so that you can retrieve them quickly and easily when needed. Records may be stored off site, provided they are secure and readily accessible to the appropriate personnel. Remember, all records must be retained for a minimum of two (2) years.
Your response to a Retrieval Request may be sent by U.S. mail, Autofax or online, as outlined in the Retrieval Request notice. Due to possible delays using U.S. mail, we recommend that you submit your response via Autofax, online or send it via overnight mail. If you elect to send your response via U.S. mail, make sure you allow sufficient time to meet the deadline.
If we do not receive your response to the Retrieval Request by the deadline given, a Chargeback will be issued and your DDA will be debited for the amount of the Transaction. This type of Chargeback cannot be reversed. To avoid such Chargebacks, you should make it a priority to respond to Retrieval Request notices as soon as you receive them.
A Chargeback is a Transaction disputed by the Cardholder or an Issuer. If you receive a Chargeback, we debit your DDA for the amount of the Transaction, including any applicable currency fluctuations, and send you a Chargeback notice. This notice includes the details of the Transaction as well as specific instructions on how to respond.
There are several situations in which Chargebacks may occur. The most common Cardholder-initiated disputes include:
While it may not be possible to eliminate Chargebacks entirely, you can reduce their occurrence by resolving issues and disputes directly with the Cardholder and by following the proper Authorization and processing procedures. Because Chargebacks can be costly to the Merchant, you should make every effort to prevent them. Generally, you should remember to:
A Merchant’s written reply to a Chargeback is known as a Chargeback rebuttal.
You must submit your rebuttal to us in a timely manner so we can present it to the Issuer. If you submit a valid rebuttal, we issue a provisional credit in the amount of the Transaction to your DDA. The Issuer will then review your rebuttal to determine if the Chargeback is remedied. If the Issuer determines that the Chargeback is not remedied, they will initiate a second Chargeback and we debit your DDA a second time.
You must submit a legible and valid rebuttal within the time frame specified in the Chargeback notice. Failure to do so will delay credit to your DDA and may result in a waiver of your right to rebut the Chargeback.
For more information on rebuttal procedures, contact the Chargeback department using the toll free number provided in the Chargeback Notice.
There are specific instances when a Chargeback cannot be reversed. In these cases, you are responsible to us for the Transaction amount regardless of the Authorization Code you received. These situations include:
Merchant’s presentation to Servicer of Excessive Activity will be a breach of the Agreement and cause for termination of the Agreement if the Excessive Activity thresholds outlined in this section are met for Merchant’s accounts as a whole. Alternatively, in Servicer’s sole reasonable discretion, if Excessive Activity occurs for any one or more POS Device identification number(s) or MID(s), only the account(s) that meet the Excessive Activity threshold may be terminated. “Excessive Activity” means, during any monthly period, Chargebacks and/or Retrieval Requests in excess of one percent (1%) of the gross dollar amount of Merchant’s Transactions or returns in excess of two and one-half percent (2.5%) of the gross dollar amount of Transactions. Merchant authorizes, upon the occurrence of Excessive Activity, Member and Servicer to take additional actions as either of them may deem necessary including, without limitation, suspension of processing privileges or creation or maintenance of a Reserve Account in accordance with the Agreement.
Chapter 7
Dynamic Currency Conversion (DCC) is a service that allows a Merchant to offer international Cardholders the option to pay in their home currency rather than U.S. Dollars at the point-of-sale. The following describes how to process Dynamic Currency Conversion Transactions for the designated Cards. These guidelines can help you:
You must register with the Payment Networks through us prior to offering DCC service to Cardholders. You have sole responsibility to comply with Laws and Payment Network Regulations governing DCC Transactions, including all of the following:
You must comply with the following DCC Cardholder written disclosure requirements in all acceptance environments, with the exception of telephone order (TO) Transactions.
For TO Transactions, you must verbally notify the Cardholder of all the disclosure requirements listed above before initiating a DCC Transaction.
In addition to the appropriate electronic or manual Transaction Receipt requirements, DCC Transaction Receipts must also include:
Prior to initiating an MO DCC Transaction, you must ensure that the following information is included on the MO form:
Prior to initiating an Electronic-Commerce (EC) DCC Transaction, you must inform the Cardholder of all of the DCC Written Disclosure Requirements listed above. You must provide this information with an “accept” or other affirmative button that requires Cardholder agreement to proceed.
Prior to initiating a T&E DCC Transaction, you must inform the Cardholder of all of the following information:
This information must be documented in a written agreement that is signed by the Cardholder before checkout or rental return that authorizes Merchant to deposit a Transaction Receipt without the Cardholder’s signature for the total amount of their obligation. Further, the Cardholder must expressly agree to DCC by marking the “accept” box on the written agreement.
The Merchant must send the Cardholder a copy of the Transaction Receipt through the postal service (or by email if selected by the Cardholder) within three (3) business days of completing the Transaction.
Multi-Currency Pricing (MCP) is a service that allows a Merchant to display the price of goods or services in a currency other than, or in addition to, your local currency. You have sole responsibility to comply with Laws and Payment Network Regulations governing MCP, including all of the following:
In addition to the appropriate electronic or manual Transaction Receipt requirements, it is important that the Transaction Receipt clearly shows the Transaction currency and the corresponding currency symbol or code. The currency code is the three digit ISO alpha country code. For Transaction Receipts without a currency symbol or code, the receipt will be assumed to be in Merchant’s local currency, which may give rise to rights of Chargeback.
Chapter 8
In addition to the Authorization procedures set out in this document, Merchants that provide vehicle rental shall follow the procedures set out in this Chapter.
You must prepare Transaction Receipts for all Transactions as described in Chapter 2, Transaction Receipts. The Cardholder must sign the Transaction Receipt. However, the Cardholder must not be required to sign until the total Transaction amount is known and indicated on the Transaction Receipt.
The Merchant will include all items of goods and services purchased or leased in a single Transaction in the total amount of a single Transaction Receipt except:
If Merchant is engaged in vehicle rental or leasing, Merchant may obtain Authorization for such Transactions based upon estimates of the Transactions according to the following procedures:
1. The Merchant estimates the amount of the Transaction based on the Cardholder’s intended rental period at the time of rental, the rental rate, tax and mileage rates and ancillary charges. The estimate may not include an extra amount for possible car damage, or for the insurance deductible amount if the Cardholder has waived insurance coverage at the time of rental.
2. If the Merchant later estimates that the Transaction amount will exceed the initial estimated Transaction amount, the Merchant may obtain additional authorizations for additional amounts (not cumulative of previous amounts) at any time before the rental return date. The Merchant must disclose to the Cardholder the authorized amount for the estimated car rental or leasing Transaction on the rental date. A final or additional authorization is not necessary if the actual Transaction amount does not exceed 115% of the sum of the authorized amounts.
3. If the Merchant alters a Transaction Receipt or prepares an additional Transaction Receipt to add delayed or add-on charges previously specifically consented to by the Cardholder, the Merchant must deliver an explanation of the change to the Cardholder (i.e., mail a copy of the amended or additional Transaction Receipt to the Cardholder), and the Merchant must fully comply with the requirements in Chapter 8, Vehicle Rental Or Leasing Ancillary Charges.
4. Regardless of the terms and conditions of any written pre-Authorization form, the Transaction Receipt amount for a vehicle rental or lease Transaction cannot include any consequential charges. The Merchant may pursue consequential charges set forth in its terms and conditions by means other than Card Transaction.
If the Merchant discovers additional ancillary charges or an error in calculation after the rental car is returned, the Merchant may bill the Cardholder provided that the signed rental contract allows for additional charges and final audit.
The Merchant may not recover charges related to car damage, theft or loss. Valid charges may include:
Parking tickets and other traffic violations For parking tickets and traffic violations:
These charges must be processed on a delayed or amended Transaction Receipt within 90 calendar days of the rental return or base end date. A copy of this Transaction Receipt must be mailed to the Cardholder’s address as indicated in the rental contract or folio. This Transaction Receipt does not require the Cardholder’s signature if the Merchant:
Chapter 9
In addition to the Authorization procedures set out in this document, Merchants that provide lodging accommodations in the hotel and hospitality industry shall follow the procedures set out in this Chapter.
You must prepare Transaction Receipts for all transactions as described in Chapter 2, Transaction Receipts. The Cardholder must sign the Transaction Receipt. However, the Cardholder must not be required to sign until the total Transaction amount is known and indicated on the Transaction Receipt.
The Merchant must include all goods and services purchased or leased in a single Transaction in the total amount of a single Card Transaction except:
The Merchant may obtain authorizations for Card Transactions involving the provision of lodging accommodations based upon estimates of the transactions according to the following procedures:
1. The Merchant must estimate the amount of the Transaction based on the Cardholder’s intended length of stay at check-in time, the room rate, applicable tax and/or service charge and any Merchant-specific methods for estimating additional ancillary charges. Merchant must request Authorization for the estimated amount of the Transaction.
Merchants approved for participation in the Visa/MasterCard Prestigious Hotel Authorization Service are exempt from this requirement if estimates to do not exceed the service’s established floor limits. In this event, the Merchant must obtain a Status Check Authorization of $1.00 (one dollar).
2. If the Merchant later estimates that the Transaction amount will exceed the floor limit (in cases where no Authorization was required) or will exceed the amount previously authorized (in all other cases), based on the Cardholder’s actual charges, the Merchant must request Authorization for the increase in the estimated Transaction amount. If necessary, the Merchant may obtain and record additional Authorizations for additional amounts (not cumulative of previous amounts) at any time before the check-out date.
A final or additional Authorization is not necessary if the actual Transaction amount does not exceed:
3. The Merchant must record on the Transaction Receipt the Authorization amount(s), Authorization date(s), and Authorization code(s) for all authorizations obtained. If Authorization is declined, the Merchant must follow its normal procedures for a declined Authorization.
4. If the Merchant alters a Transaction Receipt or prepares an additional Transaction Receipt to add delayed or add-on charges previously specifically consented to by the Cardholder, the Merchant must deliver an explanation of the change to the Cardholder (i.e., mail a copy of the amended or additional Transaction Receipt to the Cardholder), and the Merchant must fully comply with the requirements in Chapter 9, Lodging Accommodations Ancillary Charges.
5. The Merchant understands that its right to use special Authorization procedures under this section may be terminated at any time if Servicer, Discover Network, Visa, or MasterCard determines in its sole discretion that Merchant has been abusing its privileges under or not complying with prescribed procedures.
If the Merchant discovers additional ancillary charges after the Cardholder has checked out, the Merchant may bill the Cardholder provided that the Cardholder agreed to be liable for such charges.
Valid charges may include room, food, beverage and tax charges. The Merchant may not recover charges related to theft, damage, or loss except as set out below for MasterCard Transactions.
All delayed or amended charges must be processed on a separate or amended Transaction Receipt within 90 calendar days of the check-out date. A copy of this Transaction Receipt must be mailed to the Cardholder’s address as indicated on the itemized hotel bill. This Transaction Receipt does not require the Cardholder’s signature if the Merchant:
For MasterCard Transactions, charges for loss, theft, or damages must be processed as a separate transaction from the underlying rental, lodging, or similar transaction. The Cardholder must authorize the charge after being informed of the loss, theft, or damage. To obtain the Cardholder Authorization for damages, the Merchant must prepare a Transaction Receipt with proof of Card presence, provide the estimated amount for repairs (indicating that the amount will be adjusted accordingly pursuant to completion of the repairs and submission of the invoice for said repairs), and obtain the Cardholder’s signature. The final transaction amount may not exceed the Merchant’s estimated amount by more than one hundred fifteen percent (115%) (or less, as directed by local ordinances). The Merchant must submit a credit if the final cost of repairs is less than the estimated amount on the Transaction Receipt. The Merchant has thirty (30) days from the date of the subsequent transaction related to damages to submit the item into clearing.
In order to be eligible to accept Discover Network, Visa and/or MasterCard Cards to guarantee reservations for lodging accommodations, the Merchant shall satisfy the following requirements and procedures:
1. Reservation Procedures
a. The Merchant shall accept all Discover Network, MasterCard or Visa Cards without discrimination for all Cardholders requesting reservations under the applicable Card Rules.
b. The Merchant must obtain the Cardholder’s name, account number, and expiration date embossed or printed on the Card, and shall also inform the Cardholder that a Card Authorization check is made at the time of the Cardholder’s arrival.
c. The Merchant shall inform the Cardholder that the accommodations are held until check-out time on the day following the scheduled arrival date unless canceled by 6:00 p.m. establishment time (defined as the time zone in which the physical premises of the Merchant are located) on the scheduled arrival date. The Merchant must not require more than 72 hours cancellation notification prior to the scheduled arrival date or as otherwise permitted under the applicable Card Rules.
d. The Merchant shall advise the Cardholder that if he or she has not checked in (registered) by check-out time the following day after his or her scheduled arrival date and the reservation was not properly canceled, the Cardholder is billed for one night’s lodging plus applicable tax.
e. The Merchant shall quote the rate of the reserved accommodations, the exact physical address of the reserved accommodations, including name, address, city, state and country and provide the Cardholder a reservation confirmation code, advising that it be retained.
f. The Merchant shall verbally confirm and, if requested, provide a written confirmation to the Cardholder of the reservation including the Cardholder name provided by the Cardholder, account number and Card expiration date embossed or printed on the Card, the reservation confirmation code, name and exact physical address of the reserved accommodations, the provisions of the applicable Card Rules relating to the Cardholder’s obligation, including cancellation procedures and any other details related to the accommodations reserved, and the rate of the accommodations.
2. Cancellation Procedures
a. The Merchant shall accept all cancellation requests from Cardholders, provided the cancellation request is made prior to the specified cancellation time.
b. The Merchant shall provide the Cardholder with a cancellation code and advise the Cardholder that it must be retained to preserve his or her rights in case of dispute. If requested, the Merchant shall provide (by mail) the Cardholder written confirmation of the cancellation including the Cardholder account number, expiration date and name embossed on the Card, the cancellation code, and the details related to the accommodations canceled, including the name of the Merchant’s employee that processed the cancellation.
3. Scheduled Arrival Date Procedures (Unclaimed Accommodations)
a. If accommodations reserved under the applicable Card Rules, have not been claimed or canceled prior to the specified cancellation time (a “No Show”), the Merchant must hold the room(s) available according to the reservation until check-out time the following day.
b. If the Cardholder does not cancel the reservation or does not check-in within the prescribed time, the Merchant shall deposit a Transaction Receipt for one (1) night’s lodging plus applicable tax indicating the amount of one (1) night’s lodging plus applicable tax, the Cardholder account number, expiration date and name embossed or printed on the Card, and the words “No Show” on the Cardholder signature line.
c. The Merchant shall obtain an Authorization Code for the No Show Transaction.
4. Alternate Accommodations
If accommodations which were guaranteed pursuant to the Card Rules, are unavailable, the Merchant shall provide the Cardholder with the following services at no charge:
a. The Merchant shall provide the Cardholder with comparable accommodations for one (1) night at another establishment.
b. The Merchant shall provide transportation for the Cardholder to the location of the alternative establishment.
c. If requested, the Merchant shall provide the Cardholder with a three (3) minute telephone call.
d. If requested, the Merchant shall forward all messages and calls for the Cardholder to the location of the alternative establishment.
In order to participate in the Advance Lodging Deposit service under which a Cardholder uses his or her Card for payment of an advance deposit required by the Merchant to reserve lodging accommodations (“Advance Lodging Deposit”), the Merchant shall adhere to the following procedures and requirements set forth below:
1. Reservation Procedures
a. The Merchant shall accept all Cards for an advance deposit when the Advance Lodging Deposit service is agreed to by the Cardholder.
b. The Merchant must hold a valid Advance Lodging Deposit service contract with us, either as part of the Agreement or as a separate contract.
c. The Merchant shall determine the amount of an Advance Lodging Deposit Transaction by the intended length of stay, which amount must not exceed the cost of seven (7) nights of lodging. The amount of the Advance Lodging Deposit Transaction must be applied to the total obligation.
d. The Merchant shall inform the Cardholder in writing (i) of the Merchant’s advance deposit requirements, (ii) of the reserved accommodation and the Transaction amount, (iii) of the exact Merchant name and location, (iv) of the Merchant’s cancellation policy requirements, and (v) that the accommodations are held for the number of nights used to determine the amount of the Advance Lodging Deposit Transaction.
e. The Merchant shall obtain the Card account number, Card expiration date, the name embossed or printed on the Card, telephone number, mailing address, scheduled date of arrival, and intended length of stay.
f. The Merchant shall inform the Cardholder (i) that the Merchant will hold the accommodations according to the reservation, and (ii) that if changes in reservation are requested, written confirmation of such changes is provided at the Cardholder’s request.
g. The Merchant shall advise the Cardholder that if (i) he or she has not checked in by check-out time the day following the last night of lodging used to determine the amount of the Advance Lodging Deposit Transaction, or (ii) the reservation was not canceled by the time and date specified by the Merchant, the Cardholder will forfeit the entire amount of the Advance Lodging Deposit Transaction or a portion of that amount. The Merchant shall not, under any circumstances, present any additional No Show Transaction in connection with a Transaction made under the Advance Lodging Deposit service.
h. The Merchant shall quote the rate of the reserved accommodation, the amount of the Advance Lodging Deposit Transaction and the exact location of the reserved accommodations. The Merchant shall provide the Cardholder with a confirmation code (advising that it must be retained) and with the actual date and time the cancellation privileges expire.
i. The Merchant shall complete a Transaction Receipt for the amount of the advance deposit, indicating the Cardholder account number, Card expiration date, the name embossed on the Card, telephone number, mailing address, and the words “Advance Deposit” on the signature line. The Cardholder’s confirmation code, scheduled arrival date, and the last day and time the cancellation privileges expire without forfeiture of the deposit if the accommodations are not used must also be indicated on the Transaction Receipt.
j. The Merchant shall follow normal Authorization procedures for lodging Transactions. If the Authorization request results in a decline, the Merchant shall so advise the Cardholder and shall not deposit the Transaction Receipt.
k. The Merchant shall mail the Cardholder’s copy of the Transaction Receipt and the Merchant’s written cancellation policy to the address indicated by the Cardholder within three (3) business days from the date of the Transaction Receipt.
l. The Merchant shall deposit the Transaction Receipt in accordance with usual procedures as specified in this guide and the requirements for normal deposit for lodging Merchants as specified in the Card Rules.
2. Cancellation Procedures
The Merchant shall adhere to the following procedures when the Cardholder cancels the reservation on a timely basis:
a. The Merchant shall accept all cancellation requests from Cardholders, provided the cancellation request is made prior to the specified cancellation date and time.
b. The Merchant shall provide a cancellation code and advise the Cardholder that it must be retained to preserve his or her rights in the case of dispute.
c. The Merchant shall complete a Credit Transaction Receipt including the entire amount of the Advance Lodging Deposit Transaction, the Cardholder account number, Card expiration date, the name embossed or printed on the Card, mailing address, the cancellation code, and the words “Advance Deposit Cancellation” on the signature line.
d. The Merchant shall (1) deposit the Credit Transaction Receipt within three (3) calendar days of the Transaction Date, and (2) mail the Cardholder’s copy of the credit voucher to the address indicated by the Cardholder within three (3) business days from the date of the issuance of the Transaction Receipt.
3. Alternate Accommodations
b. The Merchant shall provide the following services at no charge to the Cardholder:
i At least comparable accommodations at an alternative establishment (a) for the number of nights used to determine the amount of the Advance Lodging Deposit Transaction, not to exceed seven (7) nights, or (b) until the reserved accommodations are made available at the original establishment, whichever occurs first.
ii Transportation to the location of the alternative establishment and return transportation to the original establishment. If requested, transportation to and from the alternate establishment must be provided on a daily basis.
iii If requested, provide the Cardholder two three (3) minute telephone calls.
iv If requested, forward all messages and calls for the Cardholder to the location of the alternate establishment.
4. Central Reservation Services
In the event that Merchant is a “Central Reservation Service” (defined as an entity holding operating agreements with various geographically contiguous lodging establishments to act as a reservations resource for such establishments), Merchant further agrees and warrants as follows:
a. Merchant shall have a written contract with each such lodging establishment, which shall be duly executed by an officer or manager of the lodging establishment, setting out the respective rights and duties of Merchant and such lodging establishment; and
b. Merchant shall be registered with the Credit Card Associations as a Central Reservation Service; shall not use an agent to perform such services; shall follow the procedures for reservations, cancellations, alternate accommodations and Chargebacks herein set out; and shall accept full responsibility for resolving any Cardholder problems related to the Advance Lodging Deposit Service.
In order to participate in a service under which a Cardholder authorizes the use of his or her Card for payment of his or her total obligation to the Merchant, with or without prior knowledge of the total amount (“Priority/Express Check-out”), the Merchant shall follow the following procedures and requirements (also see Chapter 7, Priority Check-Out and Express Return Transactions (Limited T&E Situations)):
1. Merchant shall accept all Discover Network, Visa and MasterCard Cards when a Cardholder requests Priority Check-out service.
2. Merchant must hold a valid Priority/Express Check-out service contract with Servicer.
3. Merchant must provide the Cardholder with a Priority/Express Check-out agreement which must contain, at a minimum, the following information:
a. Cardholder account number
b. Cardholder’s name and address
c. Expiration date of the Card
d. Merchant’s name, address and telephone number
e. Check-in date and departure date of the Cardholder
f. Roommate and room number of the Cardholder
g. A statement authorizing the Merchant to charge the designated Cardholder Account number for the amount of the bill and to present the Transaction Receipt without the Cardholder’s signature
h. Space for Cardholder’s signature
i. Transaction date
j. Identification of the Transaction currency
k. Transaction amount indicated in the Transaction currency
l. A legend identifying the Cardholder’s request for specific billing receipts, including the name and address to whom the receipts are to be mailed
4. The Merchant shall inform the Cardholder that the Priority/Express Check-out agreement must be completed, signed and returned, and that the Cardholder’s mailing address must be included to receive a copy of the hotel bill supporting the final Transaction amount.
5. The Merchant shall obtain the completed Priority/Express Check-out agreement and ensure that the Cardholder account number identified in such agreement is identical to the account number imprinted on the Transaction Receipt.
6. The Merchant shall follow the Authorization procedures for lodging transactions as set forth in this guide.
7. When the Cardholder has checked out, Merchant shall complete the Transaction Receipt, indicating the total amount of the Cardholder’s obligation and the words “Signature on File – Priority/Express Check-out” on the signature line.
8. Upon the Cardholder’s departure, the Merchant shall mail the Cardholder’s copy of the Transaction Receipt, the itemized hotel bill, and, if requested, the signed Priority/Express Check- out agreement to the address provided by the Cardholder on the Priority/Express Check-out Agreement within three (3) business days of the Cardholder’s departure.
9. Merchant must retain the itemized bill and signed Priority/Express Check-out agreement for a minimum of six (6) months after the Transaction Date.
Chapter 10
This Chapter describes the requirements applicable to the assessment of Convenience Fees by registered Merchants.
Merchant must not assess Convenience Fees unless Merchant has disclosed such fees to Servicer previously in writing and Merchant has been approved by Servicer to assess such fees. If Merchant completes a Transaction and assesses a Convenience Fee without having disclosed such fee previously in writing and obtained Servicer’s consent, Merchant will be in breach of the Agreement and Servicer may terminate the Agreement in addition to any other remedies available under the Agreement, Laws, and Payment Network Regulations. To the extent Merchant’s state or other governing body has passed legislation that requires government agencies to assess Convenience Fees as a component of card acceptance, such laws may conflict with the Payment Network Regulations. Merchant is responsible for, and agrees to hold Servicer and Member harmless from, all liability associated with legal compliance of Convenience Fees assessed by Merchant, including all fees, fines and penalties levied by the Payment Networks. Convenience Fees may be prohibited by Laws in some States. Merchant may not charge Convenience Fees where prohibited by Laws.
Merchants who accept both Visa and MasterCard Credit Cards and/or Debit Cards that desire to assess a Convenience Fee must comply with each of the following requirements:
Fee as a separate Transaction and such third party agent’s name must appear in the clearing record for the separate Convenience Fee Transaction.
If Visa is not among the types of Credit Cards and/or Debit Cards accepted by Merchant, then the Convenience Fee may be:
• Charged in face-to-face Transactions;
• Tiered, percentage based, or flat;
• Authorized and settled separately from the primary transaction; and
• Assessed by Merchant’s third-party agents.
As between Merchant, Member and Servicer, should the Payment Networks impose fees or fines as a result of Merchant’s non-compliance with Laws relating to Convenience Fees, all such fees, fines, penalties or damages will be Merchant’s responsibility.
Chapter 11
If Merchant accepts EBT Transactions, Merchant agrees to the following provisions:
Merchant agrees to issue benefits to recipients in accordance with the procedures specified in Servicer’s applicable EBT Quick Reference Guide (QRG) provided to Merchant by Servicer, as amended from time to time and in accordance with all Laws and Payment Network Regulations pertaining to EBT Transactions, including without limitation, laws pertaining to delivery of services to recipients and recipient confidentiality, including, without limitation, the Federal Civil Rights Act of 1964, Rehabilitation Act of 1973, Americans with Disabilities Act of 1990, Clean Air Act, Clean Water Act, Energy Policy and Conservation Act, Immigration Reform and Control Act of 1986, and regulations issued by the Department of Agriculture pertaining to the Food Stamp Program. The QRG, as amended from time to time, shall be deemed to be incorporated by reference into the MOG and constitutes a part of the Agreement.
Chapter 12
This Chapter describes how to process PIN-less Bill Payment Transactions utilizing PIN-authorized Debit Cards. A PIN-less Bill Payment Transaction is a PIN-less Debit Card payment Transaction resulting in funds transfer from Cardholders to Merchants in connection with payments for recurring services (excluding casual or occasional purchases) for which a corresponding invoice is periodically presented to the Cardholder by the Merchant, and which Transaction is initiated via a telephone (Voice Recognition Unit, Interactive Voice Recognition) or Internet device.
Authentication. Prior to entering into a PIN-less Bill Payment Transaction, Merchant must authenticate the Cardholder using information that is not commonly known, but is only known by the Cardholder and Merchant, such as the Cardholder’s account number with Merchant or information present on the Cardholder’s hard copy bill from Merchant. Merchant must submit its authentication procedures to Servicer for approval by the appropriate EFT Networks, and Merchant warrants that it will follow such authentication procedures for each PIN-less Bill Payment Transaction. The use of an authentication procedure, or the approval of such procedure by an EFT Network, is not a guarantee of payment, and Merchant remains liable for any Chargebacks resulting from any PIN-less Bill Payment Transactions.
No Minimum or Maximum. Merchant shall not establish minimum or maximum PIN-less Bill Payment Transaction amounts. Merchant must accept PIN-less Bill Payment Transactions on terms no less favorable than the terms under which Merchant accepts other Payment Devices.
Convenience Fees. Merchant may not add any amount to the posted price of goods or services Merchant offers as a condition of paying with a Debit Card unless permitted by the applicable Debit Card Rules.
Purchases Only. Merchant shall support PIN-less Bill Payment Transactions involving purchases only. Merchant may not initiate a Debit Card Transaction or a Credit Card Transaction for returns or refunds, and must utilize other payment avenues (such as cash, check, or invoice adjustment) to return funds to a Cardholder.
Prohibited Transactions. Merchant shall initiate Transactions only for services approved by Servicer. In no event shall Merchant initiate, allow, or facilitate a gambling or gaming transaction, or fund a stored value account for such purposes.
At the time of any Internet PIN-less Bill Payment Transaction, Merchant shall make available to each Cardholder a Transaction Receipt (printable from a screen or via e-mail) that complies fully with all Laws and containing, at a minimum, the following information:
At the time of a telephone PIN-less Bill Payment Transaction, Merchant shall provide each Cardholder with Transaction information that complies fully with all Laws and containing, at a minimum, the following information:
Technical Problems. Merchant shall ask a Cardholder to use an alternative means of payment if the Servicer Debit System or the electronic interface with any EFT Network is inoperative.
Adjustment. A PIN-less Bill Payment Transaction may be adjusted if an error is discovered during Merchant’s end-of-day balancing only by means of a written request from Merchant to Servicer. The request for adjustment must reference a settled PIN-less Bill Payment Transaction that is partially or completely erroneous or a denied pre-authorized Transaction for which the pre-authorization request was approved. An adjustment must be completed within forty-five (45) days after the date of the original PIN-less Bill Payment Transaction.
Merchant Warranty. In order to accept PIN-less Bill Payment Transactions, Merchant warrants that it is: (i) a municipal, state or other public utility system operated for the manufacture, production, or sale of electricity, natural or artificial gas, water or waste collection; (ii) an insurance service provider that is licensed by a state to sell property, casualty, life and health insurance policies and that the Transaction involves the payment of premiums on such policies; (iii) a public or private provider of telecommunications services, including telephone, cellular, digital and cable services, which is licensed and governed by any federal, state or municipal authority; (iv) a public or private provider of cable or satellite media services, which is regulated by the Federal Communications Commission or any other federal, state or municipal authority, or (v) any other acceptable Merchant type, or covered under a pilot program approved by, the EFT Networks.
Termination/Suspension of Bill Payment. When requested by any EFT Network in its sole discretion, Merchant will immediately take action to: (i) eliminate any fraudulent or improper Transactions; (ii) suspend the processing of PIN-less Bill Payment Transactions; or (iii) entirely discontinue acceptance of PIN-less Bill Payment Transactions.
Chapter 13
This Chapter describes how to process No Signature Required Transactions. The No Signature Required Program is limited to qualified Merchants and offers only limited protection from Chargebacks.
The No Signature Required Program offerings are as follows:
Participation. Merchant is responsible for validating that its Merchant Category Code (MCC) is eligible for participation in a No Signature Required Program and that it has been approved by Servicer to participate in the program.
No Signature Required Program. Certain Credit Card Associations have waived signature requirements that allow qualifying Merchants to process under-floor-limit transactions without having to obtain a Cardholder signature or provide a Transaction Receipt unless a Cardholder requests a Transaction Receipt. This No Signature Required Program is available to those Merchants in a qualifying MCC segment if the following Transaction criteria are met:
1. Transaction amount is less than $25.00.
2. Transaction occurs in a qualifying MCC. Please contact Servicer to determine if your MCC is eligible.
3. The Cardholder is present and the Transaction occurs in a face-to-face environment.
4. The full and unaltered content of Track 1 or Track 2 data of the Card’s Magnetic Stripe is read and transmitted as part of the Authorization, or the Transaction is processed via Contactless processing or unaltered chip data is sent for Authorization.
5. Specific MCC’s may require at least one (1) Contactless installation within the Merchant location.
6. One Authorization is transmitted per clearing Transaction.
7. Applies to domestic (U.S.) Transactions only.
8. Currency conversion is not performed.
Eligible Merchants that submit Transactions meeting these requirements will receive Chargeback protection against the signature requirement for Transactions that qualify under the specific Credit Card Associations’ No Signature Required Program.
Limitations. You understand that participation in a No Signature Required Program provides only limited protection against specific Chargebacks as designated by the sponsoring Credit Card Association.
POS Device. It is your responsibility to determine if your POS Device is configured to prompt for and transmit the data elements required for No Signature Required Transactions.
Chapter 14
This Chapter describes how to process wireless Transactions. In addition to the requirements set forth in the Agreement and the procedures set forth elsewhere in the MOG, Merchants that process wireless Transactions shall adhere to the requirements set forth in this Chapter.
Use of Wireless Services. Merchant may use the Wireless Services solely as a means of establishing wireless (cellular) connectivity between a Wireless POS Device and Servicer’s systems. Merchant agrees not to use the Wireless Services for remote medical monitoring or any unlawful, fraudulent, abusive or any other unauthorized purposes. Merchant shall promptly notify Servicer in writing in the event that Merchant becomes aware of any actual or suspected use of the Wireless Services in violation of the Agreement or the MOG, and any applicable schedules, attachments, exhibits, applications and enrollments. Merchant agrees that it shall locate all Wireless POS Devices accessing the Wireless Services within the areas served by the wireless network of the Servicer subcontractor that facilitates the Wireless Services and that all equipment with roaming capabilities shall not be permanently located in a roaming area. Merchant agrees not to use the Wireless Services in connection with any server devices, host computer applications or other systems that drive continuous heavy traffic or data sessions, or as substitutes for private lines or frame relay connections. Further, Merchant agrees not to use the Wireless Services in a manner that results in highly concentrated usage in limited areas of the wireless network through which the Wireless Services are provided. Merchant acknowledges and agrees that any violation of the terms and conditions in this Chapter 14 may result in the immediate suspension or termination of Wireless Services.
Limitations of Wireless Technology. Merchant acknowledges and agrees that because of the emerging nature of wireless technology, certain limitations exist that may affect the performance, Coverage Area, and reliability of wireless technology and wireless processing. Without limiting the generality of the foregoing, wireless processing and the use of a Wireless POS Device are limited to the Coverage Area and may further be limited by a variety of other factors, circumstances, and considerations including, but not limited to, the following: (i) use of a Wireless POS Device outside the Coverage Area will not be possible; (ii) within the Coverage Area, there may exist certain weak coverage areas or other fringe areas where wireless Transaction processing may be intermittent or otherwise interrupted; (iii) within the Coverage Area, certain geographic areas may exist in which wireless Transaction processing may be intermittent or not possible; and (iv) at any time and without notice, any wireless network may become inoperative due to technical difficulties or for maintenance purposes thereby affecting the Merchant’s use of the Wireless Services. In the event Merchant’s ability to use the Wireless Services is limited or prevented for any reason, Merchant agrees that it shall not process any Transaction through the use of Wireless Services, and shall in all events obtain an Authorization Code for any such Transaction through means other than wireless processing, as described in the Agreement.
Hardware Devices and Applications. Merchant acknowledges and agrees that only hardware devices and applications approved by Servicer may be used in conjunction with the Wireless Services. Merchant further acknowledges and agrees that hardware devices and applications that have not be approved by Servicer may not function or may function improperly when used in conjunction with the Wireless Services.
Completing Unauthorized Transactions. If you choose to complete a Transaction without an Authorization Code because wireless coverage is not available (i.e., you store Transaction data in a Wireless POS Device, provide the Cardholder goods or services and subsequently request Authorization of the Transaction), you do so at your own risk. You understand the risk associated with not obtaining an Authorization Code prior to completing the Transaction (i.e., you subsequently may receive a “decline” or “error” message in response to the later Authorization request). You are fully liable for all Transactions whether or not an Authorization Code is received.
Prohibition on Use of Regeneration Equipment. Merchant must obtain written approval from Servicer prior to installing, deploying or using any regeneration equipment or similar mechanism (for example, a repeater) to originate, amplify, enhance, retransmit or regenerate the Wireless Services provided hereunder.
Relationship Between Merchant and Underlying Wireless Services Provider. Merchant expressly understands and agrees that it has no contractual relationship whatsoever with the operator of the wireless network (or any of its affiliates or contractors) through which the Wireless Services are provided and that Merchant is not a third party beneficiary of any agreement between Servicer and any such network operator. In addition, Merchant acknowledges and agrees that the operator of the wireless network through which the Wireless Services are provided and its affiliates and contractors shall have no legal, equitable, or other liability of any kind to Merchant and Merchant hereby waives any and all claims or demands thereof. Merchant further acknowledges that representatives of the operator of the wireless network through which the Wireless Services are provided may have met with Merchant individually or together with Servicer to discuss and review printed materials that explain such network operator’s understanding of the services provided by Servicer and such network operator hereunder. Merchant acknowledges that it has had the opportunity to fully investigate the capabilities, quality and reliability of the Wireless Services and has satisfied itself that such Wireless Services satisfactorily meet its business needs. Merchant agrees that the operator of the wireless network through which the Wireless Services are provided and its affiliates and contractors shall have no legal, equitable, or other liability of any kind to Merchant arising from or related to any meeting, discussions or explanations regarding the Wireless Services and Merchant hereby waives any and all claims or demands it may have against the operator of the wireless network through which the Wireless Services are provided and its affiliates and contractors therefor.
Chapter 15
This Chapter describes how to process Store and Forward Transactions using specific product applications. Specifically, Servicer has developed certain product applications which allow Merchants to store transaction data in a POS Device at the time of the sale if a communication channel for transmittal of authorization is not available, and forward such transaction data to Servicer at a later time when a communication channel is available (“Store and Forward Application”).
The Store and Forward Application Transactions general requirements are as follows:
Participation. Once Merchant has been approved by Servicer to accept Transactions using the Store and Forward Application and its POS Device has been programmed with the Store and Forward Application, Merchant may utilize the Store and Forward Application only when a communication channel for transmittal of Authorization information cannot be obtained.
Limitations. Merchant will not utilize the Store and Forward Application to process any type of PIN- based Debit Card Transactions, Electronic Gift Card Transactions or ECS Transactions.
Forwarding Transaction Data. Merchant will forward Transaction Data to Servicer via a POS Device within twenty-four (24) hours of the Transaction.
Risk. Merchant understands that there is significant risk associated with utilizing the Store and Forward Application and not obtaining an Authorization at the time of the sale (i.e., Merchant may receive a “decline” or “error” message in response to the subsequent Authorization request). Merchant acknowledges and agrees it is fully liable for all Transactions whether or not an Authorization Approval Code is received.
Changes to Store and Forward Application; Termination. Merchant acknowledges and agrees that Servicer, in its sole discretion, may make changes to or terminate the Store and Forward Application at any time. Merchant will indemnify and hold Servicer harmless for any action it may take pursuant to this Chapter.
Warranties and Limitation of Liability.
a. Neither Servicer nor Member is responsible for Store and Forward Transactions.
b. Neither Servicer nor Member makes any warranty, express or implied, with respect to the services provided hereunder including, without limitation, any express or implied warranty regarding the services’ compliance with any Laws or Payment Network Regulations governing the acceptance of Store and Forward Transactions.
c. Merchant understands that Transactions processed via the Store and Forward Application are high risk and may be subject to, without limitation, a higher incidence of declined Authorization requests and Chargebacks. Merchant is liable for all Chargebacks, losses, fees, fines, and penalties related to Transactions processed via the Store and Forward Application including, but not limited to, those resulting from or related to declined Authorization requests and fraudulent Transactions. Further, neither Servicer nor Member is liable to Merchant in the event the Transaction Data is not stored within the POS Device for any reason. Notwithstanding the provisions of the Agreement or this Chapter, the liability, if any, of Servicer or Member under this Chapter for any claims, costs, damages, losses and expenses for which they are or may be legally liable, whether arising in negligence or other tort, contract, or otherwise, will not exceed in the aggregate One Thousand Dollars and No Cents ($1,000.00).
Chapter 16
This Chapter describes certain services that are available to Merchants that have been approved by Servicer for Electronic Gift Card Services. In addition to the requirements set forth in the Agreement and the other applicable procedures set forth in the MOG, Merchants that process Electronic Gift Card Transactions shall adhere to the requirements set forth in this Chapter.
In connection with processing Electronic Gift Card Transactions, Merchant must comply with the following requirements:
Electronic processing of Transactions and purchases made by Customers using Electronic Gift Cards. Servicer will confirm electronically that the Cardholder presenting the Electronic Gift Card for the purchase of goods or services through Merchant has an active account on Servicer’s Electronic Gift Card processing system and that there is sufficient value associated with the Electronic Gift Card to allow the Customer to complete the purchase. Servicer will adjust the Cardholder’s account through either a debit or credit, as applicable, in the amount of any approved Transaction.
Transaction Record Maintenance. Servicer will maintain an accessible electronic record of the Transactions conducted using an Electronic Gift Card for the lifetime of the card balance and after the balance on the card has been depleted for a period not less than sixty (60) days.
Merchant will not process Electronic Gift Card Transactions if the Electronic Gift Card processing system is down and not able to verify the validity and available balance on an Electronic Gift Card. Merchant will be solely liable for any losses or damages incurred if Merchant processes an Electronic Gift Card Transaction without receipt of such verification.
Electronic Artwork. If applicable, Merchant is responsible for submitting electronic artwork to Servicer for approval, as described in the Graphic Specifications and Procedures manual provided separately by Servicer (the “Graphic Specifications and Procedures”). Merchant understands that the card proof cannot be created without the submission of artwork, if requested or required. Failure to submit artwork or comply with the Graphic Specifications and Procedures may result in additional fees charged to Merchant for design work performed to correct the artwork and will result in the delay of the card production process. Servicer and card manufacturer cannot be held responsible for the quality of cards produced using artwork that does not meet the Graphic Specifications and Procedures. Digital artwork should be submitted to:
OR
Allegiance Merchant Services
Attn: Boarding – EGC
1401 Central Avenue
Charlotte, NC 28205
When sending in artwork, please include:
1. Merchant name and MID
2. Indicate standard or custom card order
3. Name and telephone number of graphic contact should there by any questions or issues with the artwork submitted
For complete detailed specifications, please send a request for Graphic Specifications and Procedures to info@algms.com. In your request please indicate that you want standard card or custom card specifications.
Proofing and Production Procedure. Proofs for custom card orders are provided electronically and sent to the email provided. Please print the proof, sign and fax back pursuant to the instructions on the proof. One proof is included in the card production costs. Each additional proof will be billed at thirty-five dollars ($35) each. All proofs for standard card orders are provided electronically as an Adobe pdf document. The proof will be sent to the email address then currently on file with Servicer. If the proof is acceptable, simply reply to the email and indicate approval. Provide detailed information if changes are required. In some instances you may also receive a printer’s proof and you will be required to follow the instructions included with the proof. IMPORTANT: Incorrect graphics WILL delay your order. After you approve the proof, normal production timeframe for card delivery is 2-3 weeks for standard cards and 6-8 weeks for custom cards.
Chapter 17
This Chapter describes certain services that are available to Merchants operating in the petroleum industry that have been approved by Servicer to receive Petroleum Services. In addition to the requirements set forth in the Agreement and the procedures set forth elsewhere in the MOG, Merchants that use the Petroleum Services shall adhere to the requirements set forth in this Chapter.
Conditions of Voyager Card Acceptance. Merchant agrees to abide by all terms and conditions that apply to accepting Voyager Cards and receiving payment including the following:
If Merchant has been approved to accept commercial fleet Payment Devices associated with Wright Express, Merchant agrees to enter into and accept such Payment Devices pursuant to a Wright Express Charge Card Acceptance Agreement.
Chapter 18
This Chapter describes certain services that are available to Merchants that have been approved by Servicer for Converge Services, formerly known as VirtualMerchant Services. In addition to the requirements set forth in the Agreement and the other applicable procedures set forth in the MOG, Merchants that use Converge Services shall adhere to the requirements set forth in this Chapter.
The Converge online terminal and payment system (the “Converge Payment System”) owned and operated by Allegiance Merchant Services is provided to Merchant under the terms and conditions of the Converge Terms of Use, which may be updated from time to time and incorporated by reference into the Agreement and the MOG (collectively, the “Processing Terms”).
BY LOGGING ON TO THE PAYMENT SYSTEM, MERCHANT IS INDICATING ITS AGREEMENT TO BE BOUND BY ALL OF THE TERMS AND CONDITIONS OF THE CONVERGE TERMS OF USE. IF MERCHANT DOES NOT ACCEPT THE TERMS OF USE, MERCHANT MAY NOT USE THE CONVERGE PAYMENT SYSTEM.
In addition, Merchants who use the Converge Payment System may use the Converge payment system mobile application (the “Converge Application”) to access the Converge Payment System. Merchant’s use of the Converge Application is subject to and, when using the Converge Application, the Merchant agrees to be bound by the Converge Terms of Use and the End User License Agreement for Converge Mobile Applications.
The Converge Terms of Use and the End User License Agreement for Converge Mobile Applications may be found at http://www.convergepay.com.
In connection with the Converge Services, Merchant is responsible for:
Chapter 19
This Chapter describes certain services that are available to Merchants that have been approved by Servicer to receive Payment Device Processing Services as a Payment Service Provider on behalf of Sponsored Merchants. In addition to the other requirements set forth in the Agreement and the procedures set forth elsewhere in the Merchant Operating Guide, Merchants that receive Payment Device Processing Services as a Payment Service Provider on behalf of Sponsored Merchants shall adhere to the requirements set forth in this Chapter. Payment Service Providers must comply with the Payment Network Regulations, as modified from time to time, and in the event of any conflict between the Payment Network Regulations and this Chapter or any other provisions of the Merchant Operating Guide, the Payment Network Regulations shall control.
The Payment Service Provider shall perform due diligence on each of its Sponsored Merchants in accordance with this Chapter, the Agreement and the Payment Network Regulations.
Prior to receiving Payment Device Processing Services on behalf of a Sponsored Merchant, the Payment Service Provider shall, in relation to each proposed Sponsored Merchant:
In addition to its initial diligence obligations, the Payment Service provider must conduct ongoing due diligence of its Sponsored Merchants, including:
The Payment Service Provider must verify that the Sponsored Merchant is not and does not become listed on any Payment Network’s terminated merchant file.
The Payment Service Provider shall prepare and submit to Servicer as required by the Payment Networks, but not less than quarterly, an activity report for each Sponsored Merchant containing the following information.
More frequent reporting obligations apply with respect to High-Risk Payment Service Providers, as set forth below.
The Payment Service Provider must enter into a Sponsored Merchant Agreement with each Sponsored Merchant. The Sponsored Merchant Agreement must, in substance, include all of the following provisions, that:
The Payment Service Provider may not sponsor as a Sponsored Merchant any entity conducting business that may be described under the following merchant types, which may be classified with MCCs 4814, 5912, 5962, 5966, 5968 and 5969, and which are ineligible to be Sponsored Merchants:
The Payment Service Provider must notify Servicer prior to signing a Sponsored Merchant Agreement with any such Sponsored Merchant (or prior to accepting any Transactions from such a Sponsored Merchant if an existing Sponsored Merchant) to enable Servicer to register each such entity in the Payment Networks’ registration systems before accepting Transactions from any such Sponsored Merchant. Servicer reserves the right to decline to register and to require Payment Service Provider not to enter into a Sponsored Merchant Agreement, or to terminate an existing Sponsored Merchant Agreement, with any Sponsored Merchant that causes or would cause Payment Service Provider to be a High-Risk Payment Service Provider.
Chapter 20
This Chapter describes certain requirements with which Merchants operating in Canada (“Canadian Merchants”) must comply. Canadian Merchants must execute a separate agreement or otherwise be approved to receive Processing Services from Servicer and Member for Transactions accepted at Merchant locations in Canada. Canadian Merchants must comply with the requirements set forth in the Agreement and in the MOG, as such requirements are supplemented and/or modified by the following requirements contained in this Chapter.
For purposes of Transactions in Canada, please note the following:
The following provisions are hereby added to or amended in Chapter 1 of the MOG, About Your Card Program:
The following provisions are hereby added to or amended in Chapter 2 of the MOG, Processing Transactions:
Exception Processing ATTN: Card Pick Up
Allegiance Merchant Services
1401 Central Avenue
Charlotte, NC 28205
Surcharges. Merchant may add an amount to the price of goods or services Merchant offers as a condition of paying with a Interac Debit Card provided that the Cardholder is notified through the POS Device of such amount and the Cardholder has the option to cancel the Debit Card Transaction, without cost, prior to the Debit Card Transaction being sent to the Issuer for Authorization and provided that the addition of a surcharge or user fee is permitted by the Debit Card Rules. Visa, MasterCard and Discover Network do not permit surcharging of Debit Card Transactions in Canada.
Non-Disclosure of Debit Card Rules. Merchant shall not disclose the Debit Card Rules to any Person except as may be permitted under the Agreement or required by applicable Law. For purposes of Transactions in Canada, the Debit Card Rules include all applicable rules and operating regulations of the EFT Networks, and all rules, directions, operating regulations, and guidelines for Debit Card Transactions issued by Servicer from time to time, including, without limitation, all amendments, changes, and revisions made thereto from time to time. Merchant agrees to take care to protect the Debit Card Rules using a degree of care at least equal to that used protect Merchant’s own confidential information, and Merchant will not use the Debit Card Rules for its own benefit or the benefit of any third person without the consent of the EFT Networks.
Employee Logs; Due Diligence. Merchant will maintain accurate logs of employee shifts, and will provide these logs to Servicer or Member within 24 hours of a request to do so as part of an investigation of a Debit Card fraud or other incident. Merchant acknowledges and agrees that the EFT Network requires Servicer or its designated agents to perform a due diligence review to determine that Merchant is able to comply with all applicable requirements for the Debit Card Transaction services, including but not limited to security and technical standards specified by Servicer and the EFT Networks. Merchant acknowledges that additional due diligence may be conducted by Servicer or its designated agents in the event of a change in control of Merchant’s business. Servicer shall not be required to provide the Debit Card Transaction services to Merchant if Servicer determines that to do so would pose a material risk to the security or integrity of the Debit Card Transaction services.
Transaction Receipt Requirements. Merchant will retain a copy of each Debit Card Transaction Receipt for a period of three (3) years from the date of the applicable Transaction.
The following requirements are hereby added to the information which must be contained on a Debit Card Transaction Receipt:
In the “Additional Requirements Applicable to PIN-Authorized Debit Card Transactions” section of Chapter 2 of the MOG, Processing Transactions, in addition to the listed procedures under the “Merchandise Returns” heading, the following procedures apply with respect to PIN-authorized Debit Card Transactions in Canada:
Merchandise Returns.
In the “Other Transaction Types” section of Chapter 2 of the MOG, Processing Transactions, under the “Quasi Cash Transactions” heading, the following additional language is added to “Casino gaming chips”:
The following provision is applicable to Canadian Merchants and is hereby added to Chapter 5 of the MOG, Code 10 Procedures:
Canadian Merchants that encounter unauthorized Cards should send the information set forth in Chapter 5 of the MOG to the following Canadian address:
Exception Processing
ATTN: Card Pick Up
Allegiance Merchant Services
1401 Central Avenue
Charlotte, NC 28205
The provisions set forth in Chapter 7, International Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 8, Vehicle Rental or Leasing Authorization Procedures, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 9, Lodging Accommodations Authorization Procedures, are inapplicable, as these services are not available to Canadian Merchants.
The following provision is hereby added to Chapter 10 of the MOG, Convenience Fee Requirements:
Merchant may charge a convenience fee only if Merchant does not accept Visa in the channel of commerce to which the convenience fee is applied.
The provisions set forth in Chapter 11, Electronic Benefits Transfer (EBT) Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 12, PIN-less Bill Payment Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 13, No Signature Required Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 14, Wireless Service Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 15, Store and Forward Application Transactions, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 19, Payment Service Providers, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 21, Processing Services in Puerto Rico, are inapplicable, as these services are not available to Canadian Merchants.
The provisions set forth in Chapter 22, Fanfare Loyalty and Gift Card Services, are inapplicable, as these services are not available to Canadian Merchants.
The following provision is applicable to Canadian Merchants and is hereby added to Chapter 25 of the MOG, Additional Resources:
To obtain Payment Network-specific information, Canadian Merchants can access the following web sites:
American Express: http://www.americanexpress.ca
Discover Network: http://www.novusnet.com
MasterCard: http://www.mastercard.com/canada/business/merchant
Visa: http://www.visa.ca
Interac Online is a service whereby an Interac Online Cardholder may choose to pay Merchant for goods and services purchased over the Internet from a Customer account at a financial institution. The following provisions are applicable to Canadian Merchants utilizing the Interac Online services.
Interac Online Rules. Merchant shall comply with and be bound by the Interac Online Rules, which are incorporated by this reference as if fully set forth herein. Servicer and/or the Acxsys Corporation may amend the Interac Online Rules and any of their requirements and/or regulations at any time and continued use of the Interac Online services shall evidence Merchant’s agreement to be immediately bound by any new requirements and/or regulations. Merchant hereby grants to Servicer the right to verify that Merchant is in compliance with the Interac Online Rules. Merchant shall not disclose the Interac Online Rules to any Person except as may be permitted under the Agreement or as required by applicable Law.
Due Diligence. Merchant acknowledges and agrees that Servicer or its designated agent may perform a due diligence review to determine Merchant’s ability to comply with all applicable requirements of the Interac Online Rules. Merchant acknowledges and agrees that additional due diligence may be conducted by Servicer or its designated agent in the event of a change in control of Merchant’s business. Servicer shall not be required to provide the Interac Online services to Merchant if Servicer determines that to do so would pose a material risk to the security or integrity of the Interac Online system. Merchant provides informed consent that Servicer may use any information collected from its Merchants.
Security. Merchant agrees to provide to Servicer the information required to complete Servicer’s security compliance certification program, as required by the Interac Online Rules.
Minimum Transaction. Merchant agrees to comply with any minimum transaction values which may be set by Servicer or the bank or other financial institution issuing the Interac Online Card.
Types of Transactions. Merchant may process purchases and refunds (credits) for Interact Online Cardholders. Merchant may not process Transactions for cash back or balance inquiries.
Interac Online Transaction Fees. Merchant may not add any amount to the posted price of goods or services as a condition of paying with an Interac Online Card, unless permitted by the applicable Interac Online Rules.
Display of Interac Online Logo and/or Wordmark. Unless otherwise informed by Servicer, Merchant shall prominently display the most current version of the Interac Online logo and/or wordmark on the checkout page of Merchant’s website in accordance with the specifications and requirements set forth in the Interac Online Rules. Merchant’s right to use or display such marks shall continue only as long as the Agreement remains in effect and such right shall automatically terminate upon termination of the Agreement.
Website Requirements. Merchant’s website must comply with the Agreement and the Interac Online Rules, including, but not limited to, the following:
Credit Cards and Debit Cards are changing from signature-based and PIN-based Magnetic Stripes to PIN-based Chip Cards. This initiative, which is known as “Chip and PIN,” is in response to escalating levels of fraud, most notably, counterfeiting and the use of lost or stolen Cards. A Chip Card contains a microchip, which is embedded into the Card. It contains extremely secure memory and processing capabilities. The information it contains helps ensure that the Chip Card is authentic and makes it difficult and expensive for a criminal to counterfeit the Chip Card. A PIN is entered by the Cardholder to confirm that they are the actual owner of that Chip Card.
Chip Card Acceptance.
Note that Merchant shall have sole and exclusive liability for counterfeit and fraudulent Transactions that occur, but which could have been prevented had Merchant installed and properly used Chip and PIN Technology in accordance with all Payment Network Regulations.
Chapter 21
This Chapter describes certain requirements with which Merchants operating in Puerto Rico (“Puerto Rican Merchants”) must comply. Puerto Rican Merchants must execute a separate agreement or otherwise be approved to receive Processing Services from Servicer and Member for Transactions accepted at Merchant locations in Puerto Rico. Puerto Rican Merchants must comply with all requirements set forth in the Agreement and in this MOG, as such requirements are supplemented and/or modified by the provisions contained in this Chapter.
The following provisions are hereby added to or amended in Chapter 1 of the MOG, About Your Card Program:
In the “General Operating Guidelines” section of Chapter 1 of the MOG, About Your Card Program, in the “Security Program Compliance” section, the reference to “Visa’s Cardholder Information Security Program (CISP)” is hereby replaced with “Visa’s Account Information Security (AIS) program,” with which Puerto Rican Merchants and any third party vendors utilized by Puerto Rican Merchants must comply.
The following provisions are hereby added to or amended in Chapter 2 of the MOG, Processing Transactions:
In the “Additional Requirements Applicable to PIN-Authorized Debit Card Transactions” section of Chapter 2 of the MOG, Processing Transactions, the following provisions are hereby added with respect to PIN-authorized Debit Card Transactions in Puerto Rico:
Surcharges. The ATH Network does not permit surcharging of Debit Card Transactions at POS Devices.
Non-Disclosure of Debit Card Rules. Merchant shall not disclose the Debit Card Rules to any Person except as may be permitted under the Agreement or required by applicable Law. For purposes of Transactions in Puerto Rico, the Debit Card Rules include all applicable rules and operating regulations of the EFT Networks, and all rules, directions, operating regulations, and guidelines for Debit Card Transactions issued by Servicer from time to time, including, without limitation, all amendments, changes, and revisions made thereto from time to time. Merchant agrees to take care to protect the Debit Card Rules using a degree of care at least equal to that used protect Merchant’s own confidential information, and Merchant will not use the Debit Card Rules for its own benefit or the benefit of any third person without the consent of the EFT Networks.
Employee Logs; Due Diligence. Merchant will maintain accurate logs of employee shifts, and will provide these logs to Servicer or Member within 24 hours of a request to do so as part of an investigation of a Debit Card fraud or other incident. Merchant acknowledges and agrees that the EFT Networks require Servicer or its designated agents to perform a due diligence review to determine that Merchant is able to comply with all applicable requirements for the Debit Card Transaction services, including but not limited to security and technical standards specified by Servicer and the EFT Networks. Merchant acknowledges that additional due diligence may be conducted by Servicer or its designated agents in the event of a change in control of Merchant’s business. Servicer shall not be required to provide the Debit Card Transaction services to Merchant if Servicer determines that to do so would pose a material risk to the security or integrity of the Debit Card Transaction services.
In the “Additional Requirements Applicable to PIN-Authorized Debit Card Transactions” section of Chapter 2 of the MOG, Processing Transactions, the following provisions are added to the “Use and Availability of POS Devices and PIN Pads” heading with respect to PIN-authorized Debit Card Transactions in Puerto Rico:
In the “Additional Requirements Applicable to PIN-Authorized Debit Card Transactions” section of Chapter 2 of the MOG, Processing Transactions, in addition to the listed requirements under the “Transaction Receipt Requirements” heading, the following requirements apply with respect to PIN authorized Debit Card Transactions in Puerto Rico:
Transaction Receipt Requirements. Merchant will retain a copy of each Debit Card Transaction Receipt for a period of three (3) years from the date of the applicable Transaction. The following requirements are hereby added to the information which must be contained on a DebitCard Transaction Receipt:
In the “Additional Requirements Applicable to PIN-Authorized Debit Card Transactions” section of Chapter 2 of the MOG, Processing Transactions, in addition to the listed procedures under the “Merchandise Returns” heading, the following procedures apply with respect to PIN-authorized Debit Card Transactions in Puerto Rico:
Merchandise Returns.
• For all Merchandise returns, or any other debit return initiated through Merchant’s POS Device or account, Merchant bears all responsibility for such transactions even if fraudulent.
The following provision is hereby added to Chapter 10 of the MOG, Convenience Fee Requirements:
Merchant may charge a convenience fee only if Merchant does not accept Visa in the channel of commerce to which the convenience fee is applied.
The provisions set forth in Chapter 12, PIN-less Bill Payment Transactions, are inapplicable, as these services are not available to Puerto Rican Merchants.
The provisions set forth in Chapter 22, Fanfare Loyalty and Gift Card Services, are inapplicable, as these services are not available to Puerto Rican Merchants.
Merchants operating in Puerto Rico must comply with the requirements of this Chapter. All merchants that operate locations in Puerto Rico are obligated to register with the Department of Treasury and may be required to participate in the IVU Loto program. Merchants operating in Puerto Rico must complete the IVU Loto registration process to determine if your business qualifies.
All merchants are obligated to register for the IVU Loto program. If you have not registered, please follow the registration steps below:
All eligible merchants must:
Allegiance Merchant Services offers several POS Devices that support the IVU Loto program as an integrated feature of our transaction-processing services.
For all on-line transactions, such as Credit Card or Debit Card transactions, you must enter the amount of the sale plus the State Sales Tax and the Municipal Sales Tax into the POS Device during the course of entering the transaction information.
For cash and cash equivalent transactions, such as cash, check or money order transactions, you must enter these transactions into the POS Device, including the State Sales Tax and Municipal Sales Tax.
During periods of time when the system and/or POS Device are not functioning properly, IVU Loto codes will not be generated for transactions until such time as the system is restored and/or the POS Device is repaired.
Please note that Allegiance Merchant Services is not responsible for the validity of the information entered into the POS Device for each transaction.
Below is an example of the manner in which the sales tax information will appear on the purchaser receipt:
Below is an example of the manner in which the IVU Loto-related information will appear on the purchaser receipt:
You can find more information regarding the IVU Loto program, including contact information and technical support information, at www.ivuloto.pr.gov.
The provisions set forth in Chapter 22, Fanfare Loyalty and Gift Card Services, are inapplicable, as these services are not available in Puerto Rico.
Chapter 22
This Chapter describes certain services that are available to Merchants that have been approved by Servicer to receive Fanfare Services. In addition to the requirements set forth in the Agreement and other applicable procedures set forth in the MOG, Merchants that use Fanfare Services shall adhere to the requirements set forth in this Chapter.
Overview of Fanfare Services. Merchant has elected to receive from Servicer one or both of the Fanfare Loyalty Services and/or the Fanfare Gift Card Services. Servicer delivers the Fanfare Services through the Fanfare Platform. Merchant’s access to and use of the Fanfare Services and the Fanfare Platform are subject to the Agreement, the provisions of the MOG, and the materials made available to Merchant by Servicer that relate to the Fanfare Services, including any quick reference guides and best practices guides.
Fanfare Web Portal. Servicer will provide Merchant with access to the Fanfare Web Portal. Merchant agrees to review and to comply with any materials made available by Servicer through the Fanfare Web Portal from time to time in connection with Merchant’s use of the Fanfare Services and its operation of its Fanfare Loyalty Program and/or Fanfare Gift Card Program.
Merchants that elect to use the Fanfare Loyalty Services will have access to the Fanfare Services and Fanfare Platform made available by Servicer for Merchant’s development, implementation and maintenance of its Fanfare Loyalty Program.
Merchant Fanfare Loyalty Website. As part of the Fanfare Loyalty Services, Servicer will provide a Fanfare Loyalty Website for Customer registration and Fanfare Loyalty Program Account management. Merchant must ensure that the internet address of its Fanfare Loyalty Website is included on every Transaction Receipt the Merchant prints for Customers that enroll in the Merchant’s Fanfare Loyalty Program at the Merchant’s point of sale (as described below). The Fanfare Loyalty Website will:
Enrollment at Point of Sale. Customers may initially enroll in Merchant’s Fanfare Loyalty Program at the time of a point-of-sale purchase Transaction at a Merchant location. Merchant offers Customers the opportunity to enroll at the point-of-sale through prompting via Merchant’s Supported Hardware. Merchant may not offer point-of-sale Fanfare Loyalty Program enrollment other than through Supported Hardware. Merchant is responsible for ensuring that any Customer offered enrollment in Merchant’s Fanfare Loyalty Program is notified that such enrollment is optional and is not a condition to completing the purchase Transaction. When Merchant is collecting information in connection with enrolling a Customer in Merchant’s Fanfare Loyalty Program at the point of sale, Merchant should clearly communicate to the Customer that the purpose for collecting such information is loyalty program enrollment and not a part of the Transaction.
Enrollment through Fanfare Loyalty Website. Customers that do not enroll at the point of sale may enroll by visiting the Merchant’s Fanfare Loyalty Website and completing the online registration process described under “Fanfare Loyalty Program Registration” below.
Fanfare Loyalty Program Registration. Customers that wish to enroll in Merchant’s Fanfare Loyalty Program online, and Customers that have enrolled at the Merchant’s point-of-sale but wish to enhance their Fanfare Loyalty Program experience, may register at Merchant’s Fanfare Loyalty Website. Each registering Customer will be required to provide a phone number and other identifying information to register through
Merchant’s Fanfare Loyalty Website. Fanfare Registered Customers may also elect to link a Credit Card or Debit Card, and/or a Fanfare Loyalty Card, with their Fanfare Loyalty Program Account, each as further described below.
Linking a Credit Card or Debit Card to a Fanfare Enrolled Customer’s Fanfare Loyalty Program Account. A Fanfare Enrolled Customer may link a Credit Card or Debit Card to the Fanfare Enrolled Customer’s Fanfare Loyalty Account. Linking a Credit Card or Debit Card may be completed at the Merchant’s point-of-sale using Supported Hardware (including at the time of initial enrollment) or at the Merchant’s Fanfare Loyalty Website.
Linking a Fanfare Loyalty Card to a Fanfare Enrolled Customer’s Fanfare Loyalty Program Account. If Merchant’s selected Fanfare Loyalty Program supports this feature, Merchant may choose to offer a Fanfare Enrolled Customer the option to receive and use a Fanfare Loyalty Card as a means of accessing the Fanfare Enrolled Customer’s Fanfare Loyalty Account. Linking a Fanfare Loyalty Card may be completed at the Merchant’s point-of-sale using Supported Hardware or at the Merchant’s Fanfare Loyalty Website. Fanfare Loyalty Cards must be ordered through Servicer and must comply with Servicer’s requirements related to Fanfare Loyalty Cards.
Rewards. Merchant may use the Fanfare Web Portal to create offers and establish rewards and qualifications. All offers and rewards established under Merchant’s Fanfare Loyalty Program are available to all Fanfare Enrolled Customers, except where Servicer supports and Merchant elects to make certain offers or rewards available only to a select segment of Fanfare Enrolled Customers. Merchant is solely responsible for ensuring that all offers and rewards established by Merchant (including any offers or rewards suggested by Servicer for Merchant’s use) are suitable for Merchant’s situation and business, and that all such offers and rewards (including how such offers and rewards are promoted or marketed) comply with all Laws. Merchant shall not make or promote offers or rewards that are unrelated to Merchant’s business or that include infringing, obscene, threatening, defamatory, fraudulent, abusive or otherwise unlawful or tortious material, including material that is harmful to children or violates third party privacy rights. Merchant is solely responsible for the costs and any other expenses or liabilities arising from or in connection with any offers or rewards made or promoted by Merchant.
Merchants using the Fanfare Loyalty Services will have access to e-mail marketing services supported by the Fanfare Platform for communicating with and marketing to Fanfare Registered Customers regarding Merchant’s Fanfare Loyalty Program. Fanfare Registered Customers will be able to manage their marketing preferences through their Fanfare Loyalty Program Account accessible at the Fanfare Loyalty Website. Merchant will control, and is solely responsible for, the marketing or communication characteristics (such as frequency, timing, recipients, and opt-out lists associated with such marketing or communications) and the content of any such marketing or communication efforts through the Fanfare Platform. Further, Merchant assumes full responsibility and liability for ensuring that any such marketing efforts or communications comply with (i) Laws, including where Merchant’s marketing materials are based on templates or make use of services provided by Servicer, (ii) are conducted in accordance with the terms and conditions and privacy policy governing the Fanfare Registered Customer’s participation in Merchant’s Fanfare Loyalty Program; and (iii) are consistent with any other disclosure made by Merchant to a Fanfare Registered Customer concerning Merchant’s marketing and information use practices generally.
E-mail marketing and communication. Servicer provides Merchant with the ability to send marketing and communication e-mails to its Fanfare Registered Customers through the Fanfare Platform. Such e-mails must follow any format specifications provided to Merchant by Servicer. Servicer does not review the content of any e-mail message requested to be sent by Servicer on behalf of Merchant to its Fanfare Registered Customers. Merchant acknowledges and agrees that it is solely responsible for the content of any such e-mail message, and that all e-mail messages sent using the Fanfare Platform will relate to Merchant’s Fanfare Loyalty Program relationship with the Fanfare Registered Customers. Nonetheless, Servicer reserves the right to refuse to send any e-mail communication requested by Merchant that the Servicer deems, in its sole discretion, to be in violation of any Law, that is unrelated to the Merchant’s business, that is infringing, obscene, threatening, defamatory, fraudulent, abusive, unlawful, tortious, threatening or inappropriate for children, or that is outside the scope of the Fanfare Loyalty Services.
Customer “Unsubscribe” Option. All marketing and communication e-mails sent by Merchant through the Fanfare Platform will contain an “unsubscribe” link, which will direct the Fanfare Registered Customer to a Fanfare-hosted “landing page” where the Customer can register his/her election to stop receiving marketing e- mails from Merchant. Servicer will track the marketing preferences specified by Merchant’s Fanfare Registered Customers, including those who have elected to unsubscribe or opt-out from marketing e-mails from Merchant, which information will be accessible by Merchant through the Fanfare Web Portal. In addition, the Fanfare Web Portal will enable Merchant to manually “unsubscribe” Fanfare Registered Customers who have communicated their opt-out election to Merchant outside of the Fanfare Platform.
IMPORTANT: MERCHANT REQUIREMENTS FOR E-MAIL MARKETING TO CUSTOMERS
The Federal CAN-SPAM Act of 2003 (CAN-SPAM) places certain responsibilities on “senders” of e-mail. As a Merchant sending e-mails to Fanfare Registered Customers through the Fanfare Loyalty Program, it is your responsibility to comply with these CAN-SPAM requirements. Among these requirements, when a customer responds to a commercial e-mail from a sender, and requests that the sender not send future commercial e-mail communications to the customer, this request must be promptly honored. This is true regardless of whether these requests are in response to an e-mail sent to a customer by Merchant through the Fanfare Loyalty Program, or outside of the Fanfare Loyalty Program.
For Fanfare Registered Customers who opt-out/unsubscribe from receiving future Merchant marketing e-mails through the Fanfare Platform, the Fanfare Platform will automatically “block” further marketing e-mails from Merchant to those Fanfare Registered Customers. However, it is the Merchant’s sole responsibility to ensure that these customers are also blocked (i.e., unsubscribed) from receiving any future commercial e-mails which Merchant may send outside of the Fanfare Platform. Additionally, when a Fanfare Registered Customer responds to a commercial e-mail sent by the Merchant outside of the Fanfare Platform, and opts- out/unsubscribes from receiving further commercial e-mails from Merchant, it is Merchant’s sole responsibility to record such opt-out request within the Fanfare Platform to ensure that future Fanfare marketing e-mails from the Merchant to the Fanfare Registered Customer are blocked.
To help facilitate your compliance with these requirements, Fanfare provides Merchants with access to all relevant opt-out/unsubscribe information within the Fanfare Platform at all times. With this access, it is Merchant’s responsibility to:
(1) Review the list within the Fanfare Web Portal of those Fanfare Registered Customers who have opted- out/unsubscribed from receiving commercial e-mails from Merchant through the Fanfare Loyalty Program and ensure that these Fanfare Registered Customers are similarly blocked (or removed) from any other commercial e-mail list that Merchant maintains or utilizes outside of the Fanfare Loyalty Services; and
(2) Regularly access the Fanfare Web Portal to manually block any Fanfare Registered Customer from receiving marketing e-mails from Merchant through the Fanfare Platform, when such Fanfare Registered Customer has provided Merchant with a request, outside of the Fanfare Platform, to opt-out/unsubscribe from receiving future commercial e-mails from Merchant.
Additional information regarding CAN-SPAM can be found at the Federal Trade Commission’s Business Center, a website designed to help small businesses understand and comply with various laws, including CAN- SPAM. The business center can be found at http://business.ftc.gov/ and a CAN-SPAM guide for business can be found at http://www.business.ftc.gov/documents/bus61-can-spam-act-compliance-guide-business. We particularly encourage those Merchants that conduct e-mail marketing campaigns in addition to those conducted by the Merchant through the Fanfare Loyalty Services to understand the compliance obligations imposed by CAN SPAM, and to seek legal guidance on this issue if necessary.
Merchants that elect to use the Fanfare Gift Card Services will have access to the Fanfare Services and Fanfare Platform made available by Servicer for Merchant’s deployment and maintenance of its Fanfare Gift Card Program.
In connection with processing Fanfare Gift Card Transactions, Merchant must comply with the following requirements:
Fanfare Gift Card Processing Services
Electronic Artwork. If applicable, Merchant is responsible for submitting electronic artwork to Servicer for approval, as described in the Graphic Specifications and Procedures manual provided separately by Servicer (the “Graphic Specifications and Procedures”). Merchant understands that the card proof cannot be created without the submission of artwork, if requested or required. Failure to submit artwork or comply with the Graphic Specifications and Procedures may result in additional fees charged to Merchant for design work performed to correct the artwork and will result in the delay of the card production process. Servicer cannot be held responsible for the quality of cards produced using artwork that does not meet the Graphic Specifications and Procedures. Digital artwork should be submitted to:
OR
Allegiance Merchant Services.
Attn: Boarding – EGC
1401 Central Avenue
Charlotte, NC 28205
When sending in artwork, please include:
1. Merchant name and MID
2. Indicate standard or custom card order
3. Name and telephone number of graphic contact should there be any questions or issues with the artwork submitted
For complete detailed specifications, please send a request for Graphic Specifications and Procedures to info@algms.com. In your request please indicate that you want standard card or custom card specifications.
Proofing and Production Procedure. Proofs for custom card orders are provided electronically and sent to the e-mail provided. Please print the proof, sign and fax back pursuant to the instructions on the proof. One proof is included in the card production costs. Each additional proof will be billed at thirty-five dollars ($35) each. All proofs for standard card orders are provided electronically as an Adobe pdf document. The proof will be sent to the e-mail address then currently on file with Servicer. If the proof is acceptable, simply reply to the e-mail and indicate approval. Provide detailed information if changes are required. In some instances you may also receive a printer’s proof and you will be required to follow the instructions included with the proof. IMPORTANT: Incorrect graphics WILL delay your order. After you approve the proof, normal production timeframe for card delivery is 2-3 weeks for standard cards and 6-8 weeks for custom cards.
Chapter 23
MerchantConnect, an online reporting system, allows a Merchant to access Transaction data at any time, from any standard web browser (e.g., Internet Explorer). MerchantConnect supports delivery of Authorization, Settlement, Chargeback, Interchange, adjustment/rejection and additional reporting via an online tool for viewing and/or exporting, as well as access to additional customer support. MerchantConnect can help streamline your daily reconciliation of your Transactions, help answer your questions about your point-of-sales equipment and provide an overview of products and services that Allegiance Merchant Services can provide to you.
MerchantConnect Basic: includes a single log-on to access information for a single Merchant location. You can view up to six (6) months of past statements, Chargeback and retrieval reporting, and can review batch reporting for up to thirty (30) days of settled Batch activity. In addition, you can access up to three (3) years of analytic data (average ticket, volume and Transaction counts) and have industry comparison capabilities. You can also link to report sites for our Electronic Gift Card and Electronic Check Service programs. Terminal quick reference guides are available for your reference, as well as tips and best practices to help prevent fraud in your business.
Transaction data is available twenty-four (24) hours per day, seven (7) days per week, three hundred sixty-five (365) days per year. Authorization data is refreshed on an hourly basis. Settlement data is refreshed multiple times a day, but data availability it contingent on your scheduled settlement time.
MerchantConnect Premium: provides all of the data and information as MerchantConnect Basic, plus users can consolidate reporting for multiple locations. Enhanced information is available in MerchantConnect Premium; where users can access up to a year’s worth of reporting information and have the ability to view batches of Transactions grouped by Card type or Batch reference number. Hierarchical reporting allows users the ability to aggregate data from multiple locations, and users can also export files into Excel or CSV formats for use with users’ own software systems.
External Partner Access: provides all of the data available with MerchantConnect Premium and adds the ability to control multiple users’ access to data, add and/or delete users, and set users’ level of access at a single location, group of locations or all locations. In addition, users can control which reports users have access to in an easy to use portal.
NOTE: Additional fees may apply for MerchantConnect Premium and External Partner Access.
To access MerchantConnect, you can register at www.merchantconnect.com where you will be prompted to create a user ID and password. You must authenticate your account by entering your Merchant Identification Number and the last four (4) digits of your checking account number at the time of registration. To request access for MerchantConnect Premium or External Partner Access, simply complete the request form, which can be found at https://www.merchantconnect.com/forms/MCPUserSetupForm.doc.
MerchantConnect will provide you with the latest version of your Terms of Service and Merchant Operating Guide. Information is available to help you understand Interchange qualifications and how you can obtain the best Interchange rate for your Transactions. Also, MerchantConnect contains information that will help you mitigate risk and provides tips regarding the latest fraud scams are added as they become known to Allegiance Merchant Services. Information on compliance and data security is also available on MerchantConnect.
Take a moment to browse the portal to learn all of the features available.
Chapter 24
This Chapter describes certain services that are available to Merchants that have been approved by Servicer to receive the Transend Pay Services. The Transend Pay Services allow a healthcare provider Merchant to streamline its revenue cycle management and provides an efficient and secure way for Merchant to receive healthcare-related and benefit payments from Healthcare Payers.
In addition to the requirements set forth in the Agreement and other applicable procedures set forth in the MOG, Merchants that use the Transend Pay Services shall adhere to the requirements set forth in this Chapter.
Overview of Transend Pay Services. Merchant has elected to receive the Transend Pay Services from Servicer. Merchant’s receipt of Transend Pay Services is subject to the Agreement, the MOG and the materials made available to Merchant by Servicer that relate to the Transend Pay Services, including any quick reference guides and best practices guides. Merchant agrees to review and to comply with any materials made available by Servicer, or by any of Servicer’s vendors or subcontractors, to Merchant from time to time in connection with Merchant’s use of the Transend Pay Services.
Transend Pay Services Website. Servicer, through Servicer’s vendor, will provide Merchant with access to the Transend Pay Services Website. Neither Servicer nor Member is responsible for the form, format or content of the Transend Pay Services Website or any Remittance Data. Merchant agrees to abide by any terms of use and/or end user license(s) provided by Servicer or Servicer’s vendor in connection with the Transend Pay Services Website.
Questions regarding Payments made via the Transend Pay Services. Questions regarding payments received from Healthcare Payers, including remittance advice, identity of the relevant Healthcare Payer and related questions should be directed to Servicer’s vendor using the procedures outlined in the agreement between Merchant and Servicer’s vendor or as otherwise indicated on the Transend Pay Services Website. Questions regarding the Transend Pay Services provided by Servicer, including funding settlement and Merchant reporting, should be directed to Servicer via the general customer service process.
Waiver of Claims. Merchant expressly acknowledges and agrees that, immediately upon Servicer’s receipt of funds that are to be processed via the Transend Pay Services in connection with a payment owed to Merchant by a Healthcare Payer, Merchant’s claim relating to such payment from the Healthcare Payer shall be extinguished, and Merchant automatically waives any and all claims against the applicable Healthcare Payer in connection with such payment.
Fraud Prevention. Merchant will take reasonable steps to reduce, detect and manage any fraud-related issues related to Merchant’s receipt of the Transend Pay Services and Merchant’s access to the Transend Pay Services Website. Merchant will appoint a representative available to Servicer or its vendors or subcontractors to promptly respond to any fraud-related matters.
Warranties and Limitation of Liability. Merchant acknowledges that Allegiance Merchant Services and Member will engage third party service providers to assist with the provision of the Transend Pay Services, including, but not limited to, the provision of the Transend Pay Services Website. Merchant acknowledges and agrees that Merchant may be required to enter into a user agreement with, or agree to be bound by certain terms and conditions provided by, Servicer’s vendor in order for Merchant to access the Remittance Data.
Termination of Transend Pay Services. Servicer may terminate the Transend Pay Services at any time, in Servicer’s sole discretion, upon notice to Merchant.
Participation of Healthcare Payers. Participating Healthcare Payers may change from time to time. Participation by a Healthcare Payer in the Transend Pay Services is at the discretion of the individual Healthcare Payer, and Servicer is not responsible for the participation (or lack thereof) of any Healthcare Payer in the Transend Pay Services.
Protected Health Information. No Protected Health Information (as such term is defined in HIPAA) shall be provided to, or transmitted by, Servicer or Member in connection with the Transend Pay Services. Merchant acknowledges and agrees that Merchant shall not deem Servicer and/or Member to be a Business Associate and that Servicer and Member shall not be required to enter into a Business Associate Contract in connection with the provision of the Transend Pay Services.
Chapter 25
This section describes certain terms and conditions that apply to Merchants that have elected to receive Rental Equipment from Servicer. In addition to the requirements set forth in the Agreement and other applicable procedures set forth in the MOG, Merchants that receive Rental Equipment from Servicer shall adhere to the requirements set forth in this Chapter. For the avoidance of doubt, the provisions of this Chapter 25 shall not apply to Leased Equipment.
Rental Term. Merchant agrees to the rental term and to pay the fees for Rental Equipment set forth in the Agreement. Merchant may terminate the rental term at any time upon written notice to Servicer, provided that rental payments will not be prorated. Merchant shall pay the full monthly rental payment for each full or partial month until the Rental Equipment is returned to Servicer in good repair, condition and working order.
Ownership. Servicer shall at all times retain title to the Rental Equipment. Merchant shall not create, incur, assume or suffer to exist any mortgage, lien, pledge or other encumbrance or attachment of any kind whatsoever upon, affecting or with respect to the Rental Equipment.
Care and Use; Risk of Loss. Merchant shall maintain the Rental Equipment in good operating condition, repair and appearance, and protect the same from deterioration other than normal wear and tear. Merchant shall only use the Rental Equipment in the regular course of its business, and shall comply with all laws, ordinances, regulations and rules with respect to Merchant’s use, maintenance and operation of the Rental Equipment. Merchant shall bear all risk of loss of and damage to the Rental Equipment while in Merchant’s possession. In the event of a loss of, or damage to, the Rental Equipment, Merchant shall pay to Servicer the then current full purchase price of the Equipment.
Rental Equipment Replacement. Servicer will replace any inoperable or non-functioning Rental Equipment during the rental term; provided, that (i) such Rental Equipment is not inoperable or non-functioning due to any act of Merchant or any damage for which Merchant is responsible, (ii) Merchant has paid all rental payments due and owing to Servicer, and (iii) Merchant pays the standard swap fee for the shipping and handling of the replacement Rental Equipment. Rental Equipment replacement shall constitute Merchant’s sole remedy and Servicer’s sole obligation with respect to any inoperable or non-functioning Rental Equipment.
Return of Rental Equipment. Within ten (10) days of the expiration or termination of the rental term, Merchant shall return the Rental Equipment, freight prepaid, to Servicer in good repair, condition, and working order, ordinary wear and tear excepted, to a location designated by Servicer. If Merchant fails to return the Rental Equipment to Servicer within the time period specified, Merchant shall pay to Servicer the then current full purchase price of the Rental Equipment.
This section describes certain terms and conditions that apply to Merchants that have received Apple, Inc. Equipment from Servicer.
Support. Servicer will provide Merchant with full support and assistance with any troubleshooting or any other help-desk function as may be needed or required in connection with Merchant’s use of Apple, Inc. Equipment Merchant may also purchase AppleCare to provide additional support for its Apple, Inc. Equipment, although Apple Care does not apply to any components used in connection with the Apple, Inc. Equipment that are not produced by Apple, Inc.
Warranty. Merchant understands and acknowledges that Apple, Inc., its officers, affiliates and subsidiaries make no warranties or endorsements with respect of Merchant’s use of Apple, Inc. Equipment as a POS Device, nor any other POS Device, third-party product, or combination of any Apple, Inc. and any such third-party product or POS Device.
Chapter 26
Merchants may order transaction receipts by emailing their requests to info@algms.com.