Merchant Operating Guide

Merchant Operating Guide

Canada

April 2024

For changes in this edition please see the Summary of Changes Table

This guide is intended for use by Merchants that have entered into a legally binding Agreement with a Merchant Services Provider based in Canada to accept the American Express? Card.

This document was published electronically on April 12, 2024 and will become effective immediately upon publication unless otherwise specified herein. Copyright ? 2014-2024 American Express. All rights reserved. This document contains published confidential and proprietary information of American Express. No disclosure or use of any portion may be made or reproduced in any form or by any electronic or mechanical means, including without limitation information storage and retrieval systems, without the express prior written consent of American Express. The provisions of this document are subject to change from time to time by American Express.

Summary of Changes

Change Bars

Important updates are listed in the Summary of Changes Table and also indicated in the Merchant Operating Guide with a change bar. Change bars are vertical lines in the left margin that identify revised, added, or removed text. All changes in the Merchant Operating Guide are indicated with a change bar as shown here:

Summary of Changes Table

Important updates are listed in the following table and are also indicated in the Merchant Operating Guide with a change bar.

Chapter

Chapter 1, "Introduction" Chapter 4, "Transaction Processing"

Glossary of Terms

Section/Subsection

Description of Change

Subsection 1.4.2, "Unscheduled Changes"

Updated release information and website.

Subsection 4.2.2, "Unattended Terminals"

Modified references from Customer Activated Terminals to Unattended Terminals and added requirements.

Subsection 4.2.3.4, "MerchantPresented Quick Response (MPQR)"

Added Merchant-Presented Quick Response procedures.

Subsection 4.4.1, "Advance Payment" Clarified verbiage and use.

Subsection 4.4.2, "Aggregated ? Internet"

Clarified verbiage and use.

Subsection 4.4.3, "Delayed Delivery" Clarified verbiage and use.

Subsection 4.4.6, "Recurring Billing"

Updated reference from 4.4.11 "Split Shipment" to 4.4.6 "Merchant-Initiated Transactions" and updated Recurring Billing requirements.

Added/modified definitions.

Table of Contents

Summary of Changes Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 About American Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 About the Merchant Operating Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.3 Organization of the Merchant Operating Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.4 Changes in the Merchant Operating Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2 Doing Business with American Express . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2 Benefits of Accepting the American Express Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.3 Merchant Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.4 Compliance with the Technical Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.5 Establishment Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.6 Verification and Disclosure of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.7 Permitted Uses of Merchant Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

3 Card Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

3.1 Card Acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.2 Treatment of the American Express Brand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.3 Prohibited Uses of the Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.4 Prohibited Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.5 Treatment of American Express Cardmember Information . . . . . . . . . . . . . . . . . . . . . . . 12

4 Transaction Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

4.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4.2 In-Person Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.3 Card Not Present Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 4.4 Other Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 4.5 Charge and Credit Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 4.6 Use of Third Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

5 Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

5.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Merchant Operating Guide - Canada

Table of Contents

5.2 The Purpose of Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5.3 Authorization Time Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5.4 Estimated Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 5.5 Partial Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 5.6 Floor Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 5.7 Authorization Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 5.8 Possible Authorization Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 5.9 Obtaining an Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 5.10 Card Identification (CID) Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 5.11 Authorization Reversal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 5.12 Pre-Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

6 Submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 6.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 6.3 Purpose of Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 6.4 Submission Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 6.5 Submission Requirements ? Electronic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 6.6 Submission Requirements ? Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 6.7 How to Submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

7 Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

7.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 7.2 Settlement Amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 7.3 Payment Errors or Omissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 7.4 Collecting from Cardmembers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46

8 Protecting Cardmember Information . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

8.1 Data Security Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 8.2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 8.3 Targeted Analysis Program (TAP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 8.4 Standards for Protection of Encryption Keys, Cardholder Data, and Sensitive

Authentication Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 8.5 Data Incident Management Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 8.6 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 8.7 Periodic Validation of Merchant Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 8.8 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 8.9 Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

This document contains sensitive, confidential and trade secret information, and must not be disclosed to third parties without the express prior written consent of Amex Bank of Canada.

April 2024

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In order to avoid copyright disputes, this page is only a partial summary.

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