VISA IS INTRODUCING NEW PRODUCT IDS – US Only



Fall 2013 Card Brand Enhancements (US and Canada) Q and AVisa EnhancementsVISA IS INTRODUCING NEW PRODUCT IDS – US OnlyWill the new Visa Product IDs require any changes to terminal or VAR programming? No, Elavon’s back end billing system will be updated to accommodate the new Product IDs.How will this change affect existing merchants?Merchants accepting these card products may see a change in how these transactions qualify. Overall impact is expected to be nominal.VISA IS INTRODUCING A NEW AUTHORIZATION INDICATOR FOR MOBILE PAYMENT SOLUTIONS. – US Only Will the new authorization indicator require any changes to terminal or VAR programming?Yes, Vendors supporting mobile devices will be required to update their certification to support the new authorization indicator.Will VAR vendors be contacted by Elavon to enable these changes?No, vendors will need to consider this when they update and return for certification.What will happen to mobile transactions not passing the mobile authorization indicator effective October 2013?Merchants boarded after October 1, 2013 will be required to pass the mobile authorization indicator. Visa has not indicated an impact with this requirement. At this time, transactions without the indicator will continue to process normally. Existing merchants will have the ability to pass the mobile indicator provided they have the most updated application however; the change is not currently required for merchants boarded prior to October 1, 2013.How will the new authorization indicator be used by Elavon?At this time, Elavon will record the authorization indicator for reporting purposes only. Will these authorizations be reflected separately on the merchant statement for merchants accepting mobile transactions?There are no plans for Elavon to use this field for authorization or clearing billing or reporting at this time. The purpose of this enhancement will enable Visa to understand the risk and potential fraud associated with mobile payment devices. VISA CANADA IS INTRODUCING INFINITE PRIVILEGE CARD PRODUCT – Canada OnlyHow will merchants accepting the new card products be affected? The newly issued card products will qualify at the appropriate interchange category based on card acceptance method, merchant’s geographic location and whether the card is commercial or consumer issued. Interchange categories, rates and qualification requirements are detailed on interchange grids posted to the Elavon Think Centre.VISA CANADA IS ADJUSTING THE IASF ISS FEE – US and Canada What is the IASF ISS Fee?The International Acquirer Service Fee is an assessment introduced by Visa Canada in April 2013 which is billed on all sales volume where the merchant country is Canada and cardholder issuer is non-Canadian and the Issuer Currency equals the transaction currency.What merchants are assessed the IASF ISS Fee? Canadian merchants in Client Group 25 accepting US issued cards and Canadian merchants performing DCC are subject to the IASF ISS Fee. How will the rate change affect new and existing merchants?The IASF ISS Fee is an assessment and will be billed as a pass through expense to transactions subject to the fee. VISA US IS EXPANDING VLPA ACCEPTANCE – US OnlyWhat is VLPA?Visa Large Processing Advantage (or VLPA) is an interchange program for specific commercial cards on transactions greater than $10,000. Will merchants processing eligible transactions require an update to their processing application?No, Elavon’s back end billing system will be updated to accommodate the new Product acceptance requirements.Are merchants required to register with Visa to be eligible for VLPA program?No, registration is not required to qualify for the VLPA program. VLPA is based on card issuer participation. At this time, issuer participation is limited.VISA US IS ADJUSTING CHARGEBACKS FOR AUTOMATED FUEL DISPENSER – US OnlyHow will merchants be affected by the chargeback adjustments?Automated Fuel Dispenser merchants (MCC 5542) which process an authorization of $1.00 will have chargeback protection for disputes claiming no authorization on transactions up to and including $75 ($150 for US Domestic Fleet Cards). MasterCard EnhancementsMASTERCARD U.S. IS ADJUSTING THE PROCESSING INTEGRITY REVERSAL MANDATE FOR T&E CLIENTS – US OnlyWhat is the Processing Integrity Reversal Mandate?The MC Processing Integrity Fee will apply to authorizations that are not cleared or reversed (full or partial) within MC time frames. MasterCard will assess the fee on authorizations not matched to a subsequent clearing record within 20 days of the original authorization. For non-T&E merchants,?Reversals must occur within 24 hours in a card present environment and 72 hours in a card not present environment. How will this change impact T & E merchants and their POS devices?Merchants in the newly included MCCs should ensure their processes incorporate appropriate pre-authorizations and reversals as necessary to alleviate excessive authorizations which may negatively impact the cardholders open to buy. Merchants using a VAR should contact their third party software provider to gain assurance their POS supports such processing. MASTERCARD US IS INTRODUCING NEW CVC2 USAGE FEE – US OnlyWhat is CVC2?CVC2 or Card Verification Code is a security feature for card not present payment transactions and is indicated as a three digit code on the back of a credit card. What transactions are impacted by this new fee?All transactions requesting a CVC2 match, regardless of whether the code matches will see the new assessment.How will this impact merchant pricing?The CVC2 Usage Fee is an assessment and will be billed as a pass through expense to transactions subject to the fee. MASTERCARD IS INTRODUCING NEW FINAL AUTHORIZATION FUNCTIONALITY – US and CanadaHow will this change affect Elavon merchants?Because the change is optional outside of Europe, Elavon will not make changes to our applications or back end billing systems at this time. New and existing merchants will not be impacted by this enhancement.MASTERCARD US IS ADJUSTING CHARGEBACK RESTRICTIONS FOR WORLD AND WORLD ELITE PRODUCTS – US OnlyWhat were the chargeback restrictions prior to this enhancement?Currently, disputes are restricted if the amount is equal to or less that the established US dollar limit for each of the following MCC’s Airline –$500Automobile and Vehicle Rental – $250Cruise Lines - $500Eating Places, Restaurants - $250Hotel and Motels - $250Travel Agencies and Tour Operators - $250Passenger Railways - $250How will merchants be impacted by this change?Going forward, merchants could see chargebacks for any dollar amount. Merchants may see an increase in the number of chargebacks given the enhancement. They should continue to response to chargeback notifications as usual. MASTERCARD US IS INTRODUCING NEW CHARITY INTERCHANGE PROGRAM. – US OnlyWill all charitable organizations be eligible for this interchange program?Charitable organizations falling under SIC 8398 will be eligible for this program. Are merchants required to register for this program?The following organizations are required to register for and pass an Assigned ID. Charitable organizations not on this list are not required to register for this program. Americares, American Red Cross, Doctors without Borders, International Rescue Committee, Mercy Corps, Save the Children, and World Vision.What transactions will qualify for the Charity Zero Rate?MasterCard, at its own discretion, will identify special case disaster scenarios and will communicate those as necessary along with any timelines and requirements identified as qualification requirements. MASTERCARD US IS NOW REQUIRING BALANCE INQUIRY SUPPORT. – US OnlyWhat changes will be made to Elavon applications and back end billing systems?Elavon already complies with this enhancement and no further changes are necessary.What changes will be required for merchants using a VAR Service Provider or Vendor Distributed Software?Merchants whose POS does not currently support this functionality will be required to contact their service provider.Are any additional assessments applied to Balance Inquiries?Yes, the MasterCard Network Access Branding Usage or NABU card association fee would apply to a Balance Inquiry authorization. MASTERCARD CANADA IS ADJUSTING SMALL TICKET CONTACTLESS INTERCHANGE – Canada OnlyWhich transactions will be impacted by this change?Canadian merchants processing contactless payments for $10 or less are eligible for the new interchange program. MASTERCARD CANADA IS ADJUSTING COMMERICAL INTERCHANGE. – Canada OnlyWhich merchants will be eligible for this new interchange program?Canadian merchants processing Fleet, Corporate or Purchasing cards are eligible for the new interchange categories. Some categories have additional requirements which can be reviewed on the Nationals Guide available on the Elavon Think Center.Will this change require updates to the merchant’s processing application?No, Elavon’s back end billing system will be updated to accommodate the new interchange programs. Merchants are required to pass additional data to meet qualification requirement, so they should ensure their POS is enabled accordingly. MASTERCARD IS INTRODUCING NEW INDICATORS FOR CONTACTLESS MOBILE PROCESSING – US and CanadaWill merchants be required to update their processing application to support the new contactless indicator?Merchants using Contactless capable equipment should contact their POS vendor to ensure the indicator can be passed.MASTERCARD IS ADJUSTING THE DEBIT EMBOSSED PRODUCT – US and CanadaWhat are MDH or Debit Embossed products?MDH is the product code associated with Debit products that are not indicated for electronic use only. This particular enhancement will only impact such cards issued from the European region. Discover EnhancementsDISCOVER IS ADJUSTING NETWORK FEES – US OnlyHow will this change impact existing merchants?Merchants are currently assessed the Discover Data Transmission Fee on settled transactions. Effective October 1, the assessment will applied on all authorizations under the Network Authorization Fee. Merchants currently see these assessments as pass through. The amount is not changing but the count of transactions may see a change based on merchant’s processing. DISCOVER US IS ADJUSTING CHARGEBACK TOLERANCE FOR MOTO/INTERNET TRANSACTIONS - US OnlyWhat is the current Chargeback tolerance? Currently, no tolerance level exists for Mail Order/Telephone Order merchants. DISCOVER US IS ADJUSTING CHARGEBACK DISPUTE TIMEFRAMES – US OnlyWhat is a Pre-Arbitration Inquiry?Pre-arbitration, also known as the Second Chargeback is a process by which the Issuer must respond to compelling information provided by the acquirer in response to a Chargeback request. This must be done prior to the Issuer filing for Dispute Arbitration. The Issuer must contact the merchant with the information provided and merchants must respond within the new timeframes specified.What is Dispute Arbitration?Arbitration is a process reserved for cases when the cardholder/issuing bank and the merchant cannot resolve a disputed transaction through the chargeback process. All involved parties have an opportunity to present their case to a card association analyst. The new timeframe shortens the time by which the request for Dispute Arbitration must be filed. How are the timelines changing?TypePrevious TimeframeNew TimeframePre-Arbitration Inquiry2030Dispute Arbitration4515DISCOVER US IS CONSOLIDATING CHARGEBACK REASON CODES – US OnlyHow will this change impact chargeback eligibility, responses and handling?This change only serves to address how chargebacks are categorized. All retired reason codes will be addressed in other sections of Discover’s Chargeback Operating Regulations.DISCOVER US IS INTRODUCING NEW COMMERCIAL DEBIT INTERCHANGE PROGRAMS – US OnlyWhat transactions are impacted by the new programs?Commercial Debit and Prepaid Transactions meeting the requirements for Utility and Large Ticket programs as well as transactions which qualify at the Electronic or Base submission levels will be eligible for the new interchange programs. DISCOVER IS ADDING A NEW INDICATOR FOR MOBILE PAYMENTS.Will mobile payments be eligible for new interchange products?No, there will be no impact to interchange for transactions indicated as mobile.How will this change affect existing merchants?No changes are required for existing merchants at this time but plans may be made to update their applications to support the mobile indicator at a future date.How will this change impact new merchants?New merchants boarded effective October 1, 2013 will require a processing application that supports the new indicator. Will merchants require a new processing application to support the new indicator?Elavon applications will support the transmission of the mobile indicator. Merchants using a VAR service provider or vendor distributed software should contact their vendor to ensure they meet the requirements. American Express EnhancementsAMERICAN EXPRESS ADJUSTS NON-COMPLIANCE FEE STRUCTURE.When would a transaction be eligible for the Non Compliance Fee?Transactions not including a valid authorization or transaction ID would be subject to the Non Compliance fee.Which American Express programs are impacted by this change?Both American Express OnePoint and American Express direct merchants are impacted by this change.How will this change impact merchant pricing?The Non Compliance fee exists today. Effective October 1, 2013, the fee will be assessed at the new rate and will be billed as an expense to the merchant. Union Pay EnhancementsUNIONPAY IS NOW SUPPORTING ONLINE PAYMENTS – US and CanadaWhich merchants are eligible for Union Pay Online Payments?The Union Pay Direct program for Ecommerce card acceptance is exclusively available to large National relationships due to the complex nature of processing these transactions and restrictions related to enabling card acceptance.?If you do have a large relationship which requires this product offering, standard large merchant implementation processes should be followed and you will need to work with your Relationship Manager.?UNIONPAY IS NOW SUPPORTING LODGING, MOTO, AND CNP POS PAYMENTS – US and CanadaWhich merchants are eligible for Union Pay Lodging, MOTO and CNP POS Payments?Any merchant accepting Mail Order/Telephone Order or Card Not Present transactions would be eligible for the MOTO and CNP acceptance. Any merchant with a Hotel MCC Code would be eligible for Lodging acceptance. Union Pay transactions processed through a Foreign Network are not eligible for Lodging, MOTO or Card Not Present payments. What interchange rates will apply to these transaction types?All of these Union Pay transaction types will process at the interchange rate of 1.20% and no per item and no assessments. How will this change affect existing merchants?Lodging, MOTO and CNP payments can be accepted effective November 1, 2013. Canadian Merchants must opt in to acceptance of these payment types by using the Add Equipment Services form. US merchants will have acceptance enabled. For Pass Through Merchants, the markup indicated for Union Pay will apply. For Non-Pass Through merchants, the Union Pay Qualified Rate will apply.How will this change affect new merchants?New merchants in both the US and Canada will be able to opt in for acceptance of these payments by indicating Union Pay and associated rates on the new merchant application. Other EnhancementsELAVON IS NOW SUPPORTING CANADIAN DEBIT FOR VISA AND MASTERCARD – Canada OnlyHow does Visa and MasterCard Debit vary from Interac PIN Debit?Visa and MasterCard Debit is signature based debit and does not require a PIN number. Visa and MasterCard debit is only available for Mail Order and Telephone transactions and cannot be accepted in a Face to Face environment. How will this change impact existing customers?Existing customers can opt to accept these card types by completing the Add Equipment Services form.How will this change impact new customers?New customers have the opportunity to opt for acceptance of these card types on the merchant application.INTERLINK IS CHANGING CHARGEBACKS FOR PIN-AUTHENTICATED VISA DEBIT (PAVD) TRANSACTIONS – US OnlyWhat are PAVD transactions?PAVD or PIN-Authenticated Visa Debit transactions are PIN debit transactions for Visa Debit that are processed on the rails of the Interlink PIN Debit Network. How will this change impact Elavon customers?Chargebacks with the reason code of “incorrect currency or transaction code or domestic transaction processing violation” will be processed by Elavon now. UPDATES TO EXISTING MERCHANTSWill rate adjustments be made to existing merchants associated with the Fall 2013 Association Enhancements?Pass Through Merchants will see changes to all interchange and assessments rate as a pass through expense. No changes will be made to the markup above interchange and assessments. Non Pass Through merchants will see assessment rate changes as a pass through expense however; no adjustments will be made to their current rates. ................
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