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operating guide for merchant card processing

1. Hologram Depending on the date of issuance will feature either i a three dimensional hologram bearing a distinct circular shape and images of a globe pierced by an arrow water and stars on a repetitive pattern background on the front of the Card or ii a three dimensional holographic design that is incorporated into the magnetic stripe Discover Logo Features capitalized letters of either DISCOVER or DISCOVER NETWORK depending on the date of issuance in ultra violet ink which will appear when held under ultraviolet light 5 Expiration date Merchant must verify the effective date valid from and expiration date valid to Do not accept a Card before the effective date and after the expiration date Otherwise you may be subject to Chargebacks 6 Signature on Card Compare the signature on the Card to the signature on the Transaction Receipt The signature on the Transaction Receipt must compare favorably to the signature on the back of the Card If the signature panel on the Card is blank in addition to requesting an Authorization you must do all of the following Review positive identification to determine that the customer is the Cardholder The identification must consist of a current official government identification document such as a passport or driver license that bears the Cardholder s signature Write the positive identification including any serial number and expiration date on the Transaction Receip
2. pick up card or contact the Issuer for further instructions before completing the Transaction Regulation E The regulations together with all staff interpretations issued thereunder published by the Federal Reserve Board to implement The Electronic Funds Transfer Act Regulation E includes specific rules for all parties involved governing the issuance and use of Debit Cards and the processing of On line Debit Card Transactions Representment A Clearing Record that an Acquirer presents to an Issuer through Interchange after a Chargeback Requirements of Law With respect to any Person any law ordinance statute treaty rule judgment decree regulation official directive consent approval authorization order or other determination or finding of any governmental authority applicable to or binding upon such Person or to which such Person is subject whether federal state county local foreign or otherwise including state usury laws the Truth In Lending Act the Fair Debt Collection Practices Act the Federal Equal Credit Opportunity Act the Fair Credit Reporting Act as amended by the Fair and Accurate Credit Transactions Act the National Bank Act the Bank Secrecy Act as amended by the USA PATRIOT Act together with implementing federal regulations the Trading With the Enemy Act the International Emergency Economic Powers Act and the United Nations Participation Act and related Executive Orders and implementing U S Departm
3. v Merchant must obtain proof of delivery of the goods or services to the address designated by the Cardholder and must retain records documenting such proof of delivery for 365 calendar days from the delivery date in case of a Dispute of the Discover Transaction d In addition to complying with the requirements for preparation of Sales Data in Section 5 j Merchant must obtain the Cardholder name and shipping address from the Cardholder for each Internet Discover Transaction Merchant must retain such information along with the shipping date and other information required to be included in the Transaction Documentation for the record retention period specified in Section 5 1 6 Merchant must provide the shipping date to the Cardholder at the time of each Internet Discover Transaction e At the time of delivery of goods or services ordered in an Internet Discover Transaction Merchant must provide the Cardholder with Transaction Documentation that includes the information required in Section 5 j Merchant is required to obtain proof that delivery of goods and or services occurred as directed by the Cardholder Merchant must retain proof of delivery for the record retention period specified in Section 5 1 6 If a Cardholder visits Merchant s retail location to pick up goods ordered over the Internet Merchant must obtain an imprint of the Discover Card as described in Section 5 j 3 as well as the Cardholder s signature In the event of a D
4. Merchant has been certified as a CISP Level 1 compliant merchant ii Merchant has maintained a face to face Unless a violation of applicable law This requirement does not apply to Transactions under 25 completed at a Point of Transaction Terminal with Contactless Payment capability or any Transactions completed with a Visa Micro Tag This requirement does not apply to Vehicle Specific Fleet Card Transactions Small Ticket Transactions or No Signature Required Transactions V3 1111 Page 26 fraud related Chargeback rate below 0 02 and iii Merchant Bank has received written certification from Visa approving the use of Address Verification Service by its Merchants If Merchant elects to use the Address Verification Service Merchant may not require the Cardholder s ZIP code as a condition of honoring the Card d The fact that Merchant has obtained Authorization for the Transaction does not eliminate Merchant s requirement to complete Cardholder identification procedures A Merchant that uses a Point of Transaction Terminal with Electronic Capability may accept a Cardholder s PIN The PIN must be processed as specified in all of the following i PIN Management Requirements Documents ii EMV 96 Integrated Circuit Card Specifications for Payment Systems and iii Visa Integrated Circuit Card Specifications 2 Uncertain Identification If identification or the Card s validity is uncertain Merchant must contact Merchant Ba
5. 6 Each Sales Slip completed by Merchant for Card Present Environment and Card Absent Environment Discover Transactions should clearly indicate the following information i quantity and brief description of the merchandise or service purchased ii Discover Transaction date iii Authorization Approval Code iv initials of Merchant representative that conducted the Discover Transaction v sales taxes vi total amount of the transaction including tax and tip with the name of the Approved Currency used vii Cardholder s signature except as otherwise provided in this Operating Guide viii the words Card Not Present must be written on the Sales Slip in lieu of the Cardholder s signature in Card Absent Environment transactions except as otherwise provided in this Operating Guide ix Merchant s name and location city town and state and x imprint of the Discover Card as required under this Operating Guide Failure to imprint the Sales Slip may result in a Dispute of the Discover Transaction except in Card Absent Environment Discover Transactions Section 5 0 or as otherwise provided in this Operating Guide 7 The Cardholder must sign the Sales Slip in Merchant s presence and the Merchant must verify the signature k Cardholder Signature 1 Except in Card Absent Environment Discover Transactions and other special circumstances as described in Section 5 0 including Recurring Payment Plans and Section 5 p includin
6. a Visa Credit and Business Category Cards or b Visa Debit Category Cards Limited Amount Terminal A Cardholder Activated Terminal that has Data Capture Only Capability and accepts payment for items such as a parking garage fees b road tolls c motion picture theater entrance or d Magnetic Stripe Telephones Limited Amount Terminal Transaction A Transaction that originated at a Limited Amount Terminal through use of a Card encoded with a valid Service Code for the Transaction Location Code A unique code identifying either a Point of Transaction Terminal or Merchant Outlet where a Transaction originates Lodging Merchant A Merchant that sells overnight accommodations intended for a limited period of time at a fixed location Magnetic Stripe The magnetic stripe on a Card that contains the necessary information to complete a Transaction Magnetic Stripe Data Data contained in the Magnetic Stripe and replicated in the Chip Magnetic Stripe Telephone A Limited Amount Terminal that accepts a Visa Card as payment for a telephone call Magnetic Stripe Terminal A Point of Transaction Terminal that reads the Magnetic Stripe on a Card and that additionally may read Contactless Payment Card data via a wireless interface Mail Phone Order Merchant A Merchant that completes a Mail Phone Order Transaction Mail Phone Order Transaction A Transaction where a Cardholder orders goods or services from a Merchant by telephone mail or
7. a When a Cash Advance transaction is completed using a Point of Transaction Terminal the Cash Advance Merchant must retain a copy of the Transaction Receipt and provide one copy of the Transaction Receipt to the Cardholder The Transaction Receipt must comply with the requirements of Sections 5 i 7 and 5 j 1 The Transaction Receipt must also include the following additional items i Cardholder s street address city state and zip code and country if other than U S If the Cardholder s address on the identification presented in connection with the Cash Advance transaction is different than his her current address the Cash Advance Merchant shall record the most current address on the Transaction Receipt ii Type number and state of issuance of at least one of the following pieces of government issued photographic identification presented by the Cardholder unless the writing of this number is prohibited by applicable law in which case the Cash Advance Merchant shall identify the type of identification Driver s License Passport U S Armed Forces Identification U S Alien Registration or Non Driver State Identification Card b Cash Advance Merchants that do not use a Point of Transaction Terminal to conduct a Cash Advance transaction must prepare a Sales Slip one complete copy of which must be provided to the Cardholder at the time of the Cash Advance The Sales Slip must comply with the requirements of this Operating Guide The S
8. c Ifa T amp E Express Service Transaction involves Dynamic Currency Conversion a Lodging Merchant or Car Rental Company must send the Cardholder a copy of the Transaction Receipt through the postal service within 3 business days as specified in Section 3 u 13 g of this Operating Guide 2 Amended Transaction Receipts A Lodging Merchant Cruise Line Merchant or Car Rental Company must send the Cardholder a copy of any amended or additional charges added to a Transaction Receipt r Transaction Receipt Deposit 1 Deposit Requirements and Restrictions a Except as permitted in Section 3 q 1 b of this Operating Guide a Merchant must deposit only Transaction Receipts that directly result from Cardholder Transactions with that Merchant b An Internet Payment Service Provider may deposit Transaction Receipts on behalf of a Sponsored Merchant as specified in Section 3 b of this Operating Guide c A Merchant must not deposit a Transaction Receipt until it does one of the following i Completes the Transaction ii Ships or provides the goods except as specified in Section 3 q 1 e and Section 3 u 2 of this Operating Guide iii Performs the purchased service iv Obtains the Cardholder s consent for a Recurring Transaction d A Merchant must not deposit a Transaction Receipt that it knows or should have known to be either fraudulent or not authorized by the Cardholder The Merchant is responsible for its employees
9. s arrival Merchant must at its own expense arrange the following i comparable accommodations for one night at a similar establishment including applicable taxes ii transportation to the alternate establishment and iii forwarding of all calls and messages for the Cardholder to the alternate establishment d Priority Check out Service If Merchant offers priority check out services Merchant must comply with the following requirements i require the Cardholder to sign the registration card at the time of check in acknowledging responsibility for all charges and obtain an Authorization for the estimated amount of the accommodations at check in ii complete Sales Data at check out by entering the total amount of charges incurred during the stay including restaurant bills telephone charges convenience bar charges missing item fees and miscellaneous expenses iii write the words Priority Check out on the Cardholder signature line of the Transaction Documentation iv obtain a final Authorization Approval Code for any additional amounts from the check in estimate to equal the total amount to be billed to the Cardholder by following the normal Authorization procedures as set forth in Section 5 q and v mail at the address shown on the registration card or otherwise deliver a copy of the Transaction Documentation and the itemized lodging bill portfolio to the Cardholder within seven 7 calendar days of check out e Estim
10. a Description For all Visa Card Transactions under 25 a No Signature Required Merchant is not required to A Obtain the Cardholder signature or i Provide a Transaction Receipt unless the Cardholder requests one b Requirements In addition to the Small Ticket requirements specified in Section 3 u 5 a No Signature Required Transaction must be a Transaction initiated from a Merchant assigned one of the Merchant Category Codes in Section Section 3 u 5 b or one of the following Merchant Category Codes V3 1111 Page 39 i Convenience Stores 5499 ii Filling Stations Automotive Gasoline 5541 iii Drug Stores Pharmacies 5912 iv Hardware Stores 5251 v Variety Stores 5331 vi Grocery and Supermarket 5411 vii Candy Stores 5441 viii Dairy and Ice Cream Stores 5451 ix Bakeries 5462 x Bookstores 5942 xi Gift Card and Novelty 5947 c Restrictions The Transaction must not be processed as a No Signature Required Transaction if Dynamic Currency Conversion is performed d Interchange Reimbursement Fee Any applicable Interchange Reimbursement Fee may apply to a No Signature Required Transaction 8 Contactless Payment Terminal Transactions a Acceptance Procedures i For Transactions under 25 completed at a Point of Transaction Terminal with Contactless Payment Capability Merchant is not required to obtain the Cardholder signature or ii provide a Transaction receipt unless the
11. and Car Rental Companies as specified in Section 3 q of this Operating Guide g Transaction Receipt Delivery to Cardholder The Merchant must mail a Transaction Receipt copy and cancellation policy to the address indicated by the Cardholder within 3 business days from the Transaction Date h Cancellation Period A Lodging Merchant Cruise Line Merchant or Car Rental Company must accept all Cardholder cancellations within the time limits specified by the Merchant i Cancellation Confirmation i The Merchant must provide a cancellation code and advise the Cardholder to retain it in case of dispute ii The Merchant must complete a Credit Transaction Receipt including the following information a The entire T amp E Advance Deposit Transaction amount for a Lodging Merchant or Car Rental Company or applicable amount for a Cruise Line Merchant b Cardholder name Account Number and expiration date as displayed on the Visa Card c Cardholder mailing address d Cancellation code e Words Advance Deposit on the Transaction Receipt signature line iii The Merchant must a deposit the Credit Transaction Receipt within 5 calendar days of the Transaction Date and b mail the Cardholder s copy to the Cardholder within 3 calendar days of the Transaction Date of the Credit Transaction Receipt j Alternate Lodging Accommodations If the reserved accommodations are unavailable the Merchant must provide to the Cardholder th
12. the Transaction Receipt may be disguised or suppressed Effective for Electronic Transaction Receipts generated from Point Of Transaction Terminals installed on or after July 1 2003 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Effective July 1 2006 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Merchant name Location Code or city and state Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Table 5 Data Requirements Automated Dispensing Machine Transaction Receipt TRANSACTION DATA REQUIREMENTS Account Number Effective through June 30 2006 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt may be disguised or suppressed Effective for Electronic Transaction Receipts generated from Point Of Transaction Terminals installed on or after July 1 2003 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Effective July 1 2006 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be d
13. Cardholder requests one ii The acceptance procedures specified in Section 3 u 8 a ii apply to all Transaction types including Magnetic Stripe Contactless Payment and Chip Card Transactions iii The Transaction must not be processed as a Contactless Payment Transaction if Dynamic Currency Conversion is performed b Interchange Reimbursement Fee Any applicable Interchange Reimbursement Fee may apply to Transactions under 25 completed at a Point of Transaction Terminal with Contactless Payment capability 9 Dynamic Currency Conversion Transactions a General Requirements i A Merchant that offers Dynamic Currency Conversion services must comply with the substance of all applicable operating requirements specified in the Visa U S A Inc Operating Regulations including but not limited to this Section 3 u 9 ii A Merchant must not represent either explicitly or implicitly that its Dynamic Currency Conversion service is a Visa service iii A Merchant may offer Cardholders a Dynamic Currency Conversion Transaction option under the following conditions a Disclosure The Merchant must fully inform the Cardholder that 7 Dynamic Currency Conversion Transaction is optional and 2 the Cardholder need not do anything additional to have the Transaction processed in the local currency b Before initiating a Dynamic Currency Conversion Transaction in the Card Absent Environment Merchant must disclose specified Transaction r
14. Code 10 as described below d Telephone Authorization and Manual Processing If Merchant does not have an electronic authorization Terminal call the telephone authorization number as part of the manual processing procedure Follow the steps outlined below holding the Card in Merchant s hand until all steps are completed f you are unable to obtain an Authorization Response with your equipment call your designated voice authorization 800 number and enter Authorization information into the VRU using a touch tone phone for MasterCard Visa or Discover V3 1111 Page 3 o MasterCard Visa and Discover Telephone Authorizations 800 314 6888 Call the following for other Card types o American Express Optima 800 528 5200 o Diners Club Carte Blanche 800 525 7376 o JCB International 800 522 8788 o Available 24 hours day 7 days week Make a card imprint on a manual Transaction Receipt using a Card imprinter Fill in the Transaction information item description amount etc Each Transaction must be processed on a single Transaction Receipt Call for Authorization When the operator answers you may be asked to provide o The Card Account Number expiration date Bank Identification Number and CVV2 CVC2 or CID o Merchant Identification Number o The amount of the Transaction The operator will give you a Response Code or provide other instructions if the Card is not Authorized If the Transaction is approved the Mercha
15. Merchant must submit to Bank records of valid Transactions only between the Merchant and a bona fide Cardholder A Merchant must not present to Bank a Transaction that it knows or should have known to be fraudulent or not authorized by the Cardholder or that it knows or should have known to be authorized by a Cardholder colluding with the Merchant for a fraudulent purpose Within the scope of this rule the Merchant is responsible for the actions of its employees agents and representatives 2 Submit Transactions within Three Business Days The Merchant must present records of valid Transactions to Bank no later than three bank business days after the date of the Transaction except a the record must not be presented until after the goods 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 goods or services b when the Merchant receives Authorization for a delayed presentment in which case the words Delayed Presentment must be noted on the TID c when the Merchant is obligated by law to retain the TID or return it to a buyer upon timely cancellation in which case the merchant should present the record within 10 business days after the Transaction Date and d when the Merchant has multiple locations and uses a central facility to accumulate and present records to Bank In this case the Merchant must present the record in accordance wit
16. Number or place an electronic Card draft in the Terminal s printer If the Terminal cannot read the Magnetic Stripe key in the information embossed on the Card and if the Card is present make a Card imprint on a separate manual Transaction Receipt f the Account Number displays on the Terminal screen verify that it matches the Account Number embossed on the Card If it doesn t match retain the Card see below for Recovering Card Decline means the Transaction cannot be Authorized Do not accept the Card Return the Card to the Cardholder and discretely advise that the Card has been declined If the Cardholder has questions refer him or her to the Issuer of the Card Unknown Card and similar messages usually mean the Card is of a type that there is a problem with the Card or Card account Do not accept the Card without a telephone Authorization Verify that all information is correct and legible on all copies of the Transaction Receipt Do not circle the expiration date or obscure the Card or transaction information in any way Watch the Cardholder sign the Transaction Receipt compare the signature with the one on the back of the Card If Merchant can t tell whether the signatures match ask for a photo ID Return the Card and Cardholder copy of the Transaction Receipt to the Cardholder f Merchant has concerns that a Transaction may be fraudulent even though the Merchant received Authorization call for a
17. Point of Transaction Terminal Chip Reading Device A Point of Transaction Terminal capable of reading communicating and processing Transaction data from a Chip Card Such terminal may additionally include Contactless Payment capability Clearing All of the functions necessary to collect a Clearing Record from an Acquirer in the Transaction Currency and deliver it to the Issuer or to reverse this transaction or to process a Fee Collection Clearing Record A record of a Presentment Chargeback Representment or Reversal in the format necessary to clear the Transaction Client Organization A company or organization that sponsors a Commercial Visa Product program such as Visa Business Visa Corporate Visa Purchasing including Visa Fleet and any other Commercial Card program combining the functionality of these Cards wherein Cards are provided to users for business related purchases Such companies or organizations may include public or private sector companies including sole proprietors and self employed individuals Commercial Visa Prepaid Product A Commercial Visa Product issued as a Visa Prepaid Card which is designed to access funds in a Prepaid Account that is owned by a Client Organization used solely to provide a means to pay for the acquisition of business related goods and services Commercial Visa Product A Visa Card that bears the Marks Area and the descriptive term Business Card Corporate Card Purchasing Car
18. Point of Transaction Terminal through a Visa approved wireless interface in the Card Present Environment Convenience Fee A fee charged by a Merchant for an added convenience to the Cardholder as specified in Section 3 f of this Operating Guide Copy Request A request for a Transaction Receipt that is processed through the VisaNet Copy Request and Fulfillment Service Correction An adjustment to Merchant s Settlement Account in order to correct an error in Settlement that resulted from an error contained in Transaction Receipts or with respect to Chargebacks Representments reimbursements assessments or fees CPS Small Ticket A payment service for Visa Consumer Card Transactions that meet the applicable requirements as specified in Section 3 u 6 of this Operating Guide Credit Slip A Discover term relating to a Transaction Slip used by a Merchant when issuing a Credit Transaction to a Cardholder V3 1111 Page 11 Credit Transaction A Merchant s refund or price adjustment credited to a Cardholder account Credit Transaction Receipt A Transaction Receipt evidencing a Merchant s refund or price adjustment to be credited to a Cardholder account Cruise Line Merchant A Merchant whose primary business is the selling of recreational travel on water including overnight accommodations intended to provide leisure or vacation activities for individuals or groups Custom Payment Services CPS The component services provided by Vi
19. Reservation Service Online A method of requesting an Authorization through a communications network other than voice to an Issuer or its agent Online Debit Card Transaction A Card Transaction between the Merchant and the Cardholder that is initiated with a Card that is processed through a Debit Network and that requires entry of a Cardholder s PIN during the Transaction process Online Address The electronic sales location domain name of a Merchant that conducts the sale of goods or services over the Internet or other network Operating Guide The then current manual prepared by Bank containing operational procedures instructions and other directives relating to Card Transactions A copy of the Operating Guide may be accessed at Processor s web site at http transfirst com requlations html Operating Rules are relevant portions of Visa Operating Regulations the MasterCard Rules and the operating rules regulations operating manuals official rules bulletins notices and similar documents issued by Card Associations Debit Networks Merchant Bank or Processor Order Form A document bearing the Cardholder s signature either written or electronic authorizing goods or services to be charged to his her account An Order Form may be any of the following a a mail order form b a Recurring Transaction form c a Preauthorized Healthcare Transaction form or d E mail or other electronic record that meets the requirements of applica
20. Transaction Receipt as follows e Write the digits in the space provided on the Transaction Receipt or V V e Key enter and electronically print the digits on the Cash Disbursement Transaction Record in the designated space if using a Point of Transaction Terminal capable of printing key entered numbers e Ifthe numbers do not match attempt to recover the Visa Card or Visa Electron Card as set forth in Section 3 q of this Operating Guide When using an Account Number Verifying Terminal if the embossed Account Number does not match the encoded Account Number y Ni Ni e Decline the Transaction and attempt to recover the Card by reasonable and peaceful means e Note the physical description of the Cardholder b Merchant must not require a Cardholder to provide any supplementary Cardholder information as a condition for honoring a Visa Card or Visa Electron Card unless it is required or premitted elsewhere in this Operating Guide or the Visa Operating Regulations Such supplementary Cardholder information includes but it not limited to Social Security Number or any part thereof ii fingerprint ii home or business address or telephone number iv driver s license number v photocopy of a driver s license vi photocopy of the Visa Card or Visa Electron Card or vii other credit cards c Merchant may perform Address Verification Service ZIP inquiry only in a Face to Face Environment if all the following apply
21. Transaction Receipts and Transaction Slips Transaction Information Any Transaction information or data that is contained in the Authorization message or Clearing Record Transaction Receipt An electronic or paper record of a Transaction or a copy including microfilm generated at the Point of Transaction Transaction Record A paper record issued by or in connection with a Point of Transaction Terminal Transaction Region The region in which the Merchant Outlet is located regardless of the Cardholder s location when a Transaction occurs For Transactions completed aboard an aircraft the Transaction Region is that in which the Merchant deposits the Transaction Receipt Transaction Slip A form used by a Merchant to capture Discover Transaction data in transactions where a Point of Transaction Terminal is not used one copy of which is provided to the Cardholder and one copy of which is provided to Processor for Settlement of the Discover Transaction including a Sales Slip or a Credit Slip as applicable or appropriate under the circumstances Vehicle Specific Fleet Card A Visa Purchasing Card enhanced with Fleet Service and assigned to a specific vehicle The Card is embossed with the vehicle license number or other unique identification and any driver can sign for the Transaction For control purposes Vehicle Specific Cards are blocked by Merchant Category Code so that they may only be used at fuel and vehicle maintenance Merchants Veri
22. Transaction with the Merchant Sanctioned Person A Person whose property is blocked and cannot be dealt in or who or which is otherwise identified as the subject of U S economic sanctions administered by OFAC for example by being listed on OFAC s SDN List or by being organized in or operating in or on behalf of a country territory or government that is the subject of sanctions administered by OFAC Such countries include as of 9 2006 Burma Myanmar Cuba Iran Sudan and for some purposes Syria Scrip A two part paper receipt dispensed by a Scrip Terminal that is redeemable at a Merchant Outlet for goods services or cash Scrip Terminal A Cardholder Activated Terminal that prints Scrip Secure Electronic Commerce Transaction An Electronic Commerce Transaction that has been authenticated using an Authentication Method V3 1111 Page 17 SDN List OFAC s frequently updated list of Specially Designated Nationals and Blocked Persons maintained on the OFAC website at www treas gov offices enforcement ofac index html Secure Electronic Transaction Specification A software protocol that enables end to end secure processing of Transactions over the Internet and other networks Secure Sockets Layer SSL A protocol that uses public key encryption for the secure processing of Transactions over the Internet and other networks Security Requirements A Discover term relating to i The Payment Card Industry Data Security S
23. a discount from the standard price and b non discriminatory as between Cardholders who pay with comparable cards A comparable card is any other branded general purpose payment card that uses the cardholder s signature as the primary means of cardholder authorization Thus any discount made available to cardholders who pay with comparable cards must also be made available to Cardholders who wish to pay with Visa Cards Any discount made available to a Cardholder who pays with a Visa Card need not be offered to cardholders who pay with comparable cards 3 Discounts on Purchases Made With Affinity Cards When presented with an Affinity Card a Merchant or Affiliated merchant must not provide a discount to the Cardholder unless a the discount such as a credit on the Cardholder statement rebate etc is provided subsequent to the time of the Transaction or b the Cardholder presents a coupon or voucher in addition to the Affinity Card A Merchant or Affiliated merchant must not promote at the Point of Transaction the availability of discounts on purchases made with an Affinity Card f Convenience Fees and Surcharges 1 A Merchant that charges a Convenience Fee must ensure that the fee is a Charged for a bona fide convenience in the form of an alternative payment channel outside the Merchant s customary payment channels b Disclosed to the Cardholder as a charge for the alternative payment channel convenience c Ad
24. advance of a hotel checkout or car rental return The written agreement must document e The specific currency in which the conversion will take place e That the Cardholder has been offered a choice of currencies including the Merchant s local currency e That the Cardholder understands that a Dynamic Currency Conversion Transaction will take place e The currency choice is final e That the currency conversion rate will be determined at a later time without further Cardholder consultation Transaction Receipt In addition to the Transaction Receipt requirements specified in Electronic and Manual Transaction Receipts Exhibit 1 to this Operating Guide a Transaction Receipt must include the following information e Price of the goods or services in the Merchant s local currency accompanied by the currency symbol next to the amount e Total price in the Transaction Currency accompanied by the words Transaction Currency and the currency symbol next to the amount e Exchange rate used e Any additional mark up commission or fee for the Dynamic Currency Conversion service e A statement in an area easily seen by the Cardholder that The Cardholder was offered a choice of payment in the Merchant s local currency The choice of currency is final Either the currency conversion will not be conducted by Visa or the Merchant or Merchant Bank as applicable is providing the currency conversion service Each of the above data elements must be show
25. available at the MasterCard web site at the following URL http Awww mastercard com us wce PDF MasterCard Rules 5 08 pdf The MasterCard Merchant Rules Manual provides Merchants with MasterCard Standards applicable to Merchant acceptance of MasterCard Cards and Maestro Cards A Merchant must at all times comply with MasterCard Standards Bank may require a Merchant to adhere to additional and or more stringent standards than MasterCard Standards require The provisions of the MasterCard Merchant Rules Manual are incorporated into this Operating Guide by reference Note however that the MasterCard Merchant Rules Manual does not reflect changes to the MasterCard Standards implemented since the date of publication of the manual In the event the provisions of the MasterCard Merchant Rules Manual conflict with the provisions of the MasterCard Standards or the Merchant Agreement including this Operating Guide the provisions of the MasterCard Standards and or the Merchant Agreement in that order shall control 4 Verification of Validity of Card The first step in safely accepting a Card is to verify that the Card is valid Merchant should examine every Card presented to verify that it has valid MasterCard Visa or Discover card features a Visa Card Account Number The Account Number starts with the number 4 The first four digits match the BIN Embossing extends into the hologram Bank Identification Number BIN is printed under the emboss
26. basis Such Transactions include a single payments by the Cardholder in either a Face to Face Environment of Card Absent Environment b Recurring Transactions and c Installment Billing Transactions Billing Currency The currency in which an Issuer bills a Cardholder for Transactions BIN A six digit number assigned by Visa and used to identify a Member or VisaNet Processor for Authorization Clearing or Settlement processing Biometric Card Transaction A Discover Transaction where the Cardholder s identity is verified and the Discover Transaction is effected using the Cardholder s unique finger print or other unique physical or physiological characteristic in addition to any other requirements applicable to the Discover Transaction Business Day Monday through Friday excluding Merchant Bank holidays Each Business Day ends at the cut off time specified by Merchant Bank Charges submitted for processing on a holiday weekend or after the cut off time are treated as received the following Business Day Car Rental Company or Car Rental Merchant A Merchant whose primary business is the rental of passenger vehicles at either a corporate or franchise location or at locations of licensees bearing the name of the corporate entity Card Any Visa branded MasterCard branded credit or debit cards Discover Card private label credit card ATM debit Card or any other card issued by a Member which Merchant Bank may at any time specify in
27. be clearly imprinted on the Sales Slip or successfully swiped through the Point of Transaction Terminal in order to prove the Discover Card was present at the time of the Discover Transaction p Special Circumstances Industry Requirements The following provisions detail handling information for certain industries and special circumstances including store closings Recurring Transactions car rentals delayed delivery transactions lodging transactions transactions at Customer Activated Terminals CATs Biometric Card Sales Contactless Card Sales and No Signature Required Card Sales 1 Discover Card Acceptance During Store Closings or Liquidation Merchant must comply with the following requirements during the liquidation and or closure of any Merchant outlets locations and or entire business i post signs clearly visible to customers stating that All Sales Are Final during the liquidation ii stamp Transaction Documentation with a notice that All Sales Are Final and where applicable As Is in order to indicate the Cardholder s acknowledgement that Credit Transactions are not permitted and iii promptly notify Processor of the closure or liquidation of Merchant or any of Merchant s outlets or locations Merchant remains responsible for payment of amounts owed due to Disputes of Discover Transactions conducted during and after the closing and or liquidation of Merchant that are resolved in favor of the Cardholder or Issu
28. bona fide commission postage expedited service or convenience fees and the like if the fee is imposed on all like transactions regardless of the form of payment used or as MasterCard has expressly permitted in writing A surcharge is any fee charged in connection with a MasterCard Transaction that is not charged if another payment method is used The merchant discount fee is the fee the Merchant pays to Bank to acquire Transactions 3 Charges for Unique Transactions A Merchant is permitted to charge a fee for a unique transaction in accordance with the Standards found in chapter 4 of the MasterCard GCMS Reference Manual which is excerpted in Section 4 of the MasterCard Merchant Rules Manual 4 Minimum Maximum Transaction Amount Prohibited A Merchant must not require or indicate that it requires a minimum or maximum Transaction amount to accept a valid and properly presented Card A Merchant may set a minimum Transaction amount to accept a Card that provides access to a credit account under the following conditions a the minimum Transaction amount does not differentiate between Issuers and b the minimum Transaction amount does not differentiate between MasterCard and another acceptance brand and c the minimum Transaction amount does not exceed USD 10 or any higher amount established by the Federal Reserve by regulation A Merchant may set a maximum Transaction amount to accept a Card that provides access to a credit account under th
29. c Transaction Processing Requirements i If the Transaction is 15 or under the Merchant is not required to a Obtain the Cardholder signature or b Provide a Transaction Receipt unless the Cardholder requests one ii A Merchant must obtain Authorization for a CPS Small Ticket Transaction iii The Point of Transaction Terminal must read and transmit track 1 or 2 of the Magnetic Stripe or unaltered Chip data as specified in the appropriate VisaNet User s Manual iv The Transaction must occur a in a Face to Face environment or b At a Self Service Terminal or c At an Automated Dispensing Machine v The Merchant name and location must be included in the Authorization Request as specified in the Required Data for Authorization Requests and Responses Exhibit OO d Interchange Reimbursement Fee A CPS Small Ticket Transaction qualifies for an Interchange Reimbursement Fee e Transaction Date The Acquirer s Processing Date for CPS Small Ticket Program Transactions processed at eligible Merchant Outlets must be within 2 calendar days excluding Sundays and the U S holidays listed below of the Transaction Date i New Year s Day ii Martin Luther King Jr Day iii WWashington s Birthday Observed iv Good Friday v Memorial Day Observed vi Independence Day vii Labor Day viii Columbus Day Observed ix Veterans Day x Thanksgiving Day xi Christmas Day 7 No Signature Required Transactions
30. debit to the Merchant s Settlement Account Deposit Date The date on which Merchant Bank receives a Transaction Receipt from a Merchant Digital Certificate A digitally signed credential used to authenticate the owner of the credential or to ensure the integrity and confidentiality of the message it is signing Direct Connect Merchant A Merchant that directly enters Authorization Requests into the V I P System Discover Acceptance Mark The Program Mark s designated by Discover as the same may be revised by Discover from time to time that Merchants display in order to demonstrate Discover Card Acceptance and that Acquirer displays to demonstrate Acquirer s status as an Acquirer Discover Card i A valid payment card bearing a Discover Acceptance Mark Other Acceptance Mark or such other mark as Discover may designate from time to time or ii an access device approved by Discover to access a Discover Card Account and or iii the corresponding Discover Card Account for a Card Absent Environment transaction Discover Card Acceptance The acceptance by a Merchant of Discover Cards as the method of payment for goods or services or in connection with Cash Advances Discover Card Account The records maintained by Discover of Discover Transactions payments and available balance or credit line for a given Discover Card Discover Program Marks The brands emblems trademarks and or logos that identify Discover Cards including without
31. fora Code 10 if you are unsure 9 Code 10 Procedures An Authorization procedure called Code 10 is available if a Merchant is suspicious of a Transaction or has reasonable grounds to believe that the Card is fraudulent counterfeit or stolen or the Cardholder is not authorized If any of the foregoing circumstances exist V3 1111 Page 4 Call the voice Authorization center and request a Code 10 Authorization while the Merchant continues to hold the Card An operator will lead the Merchant through a series of questions with yes or no answers that are specifically designed to help avoid any discomfort for the Merchant or for the Cardholder f Authorization is not granted refer the Cardholder to the Issuer of the Card If Merchant is told to retain the Card follow the operator s instructions or the procedures outlined below in these Operating Rules Avoid any embarrassing confrontation with the Cardholder Merchant agrees that neither Merchant Bank nor Processor is liable for the results of any confrontation with the Cardholder 10 Recovering a Card When seeking Authorization on a Card Transaction a Merchant may be instructed not to return the Card to the Cardholder This may mean that the Card has been reported lost or stolen or that fraud has been detected If Merchant is told to retain the Card or receive a Pickup Card message on its electronic terminal the Merchant should retain the Card and discretely advis
32. has been deemed uncollectible by the Merchant providing the associated goods or services A Visa Card Transaction that represents a payment on an existing obligation must be identified by the appropriate indicator in the Authorization Request and Clearing Record 10 11 S lt L x a V3 1111 Page 24 14 Enter into Interchange a Transaction that represents collection of a dishonored check 15 Deposit a Transaction Receipt that does not result from an act between the Cardholder and the Merchant or the Cardholder and its Sponsored Merchant laundering h Chip Card Acceptance Ifa Chip initiated Transaction is declined by the Issuer the Transaction must not be completed by any other means If the Chip or Chip Reading Device is inoperable Merchant must obtain an Online Authorization using the Magnetic Stripe If the Magnetic Stripe cannot be read or if Online Authorization is not available existing Card acceptance and Transaction processing procedures apply i Use and Disclosure of BIN Information A Merchant Agent or Merchant Servicer that receives BIN information from Merchant Bank must not use such information for any reason other than to identify Visa Debit Category products at the point of sale unless authorized by Visa U S A Visa BIN information is proprietary and confidential information belonging to Visa U S A A Merchant Agent or Merchant Servicer must not disclose Visa BIN information to any third party without prior writt
33. ii Merchant may obtain additional amounts at any time on or between the Cardholder s embarkation date and disembarkation date and must disclose any additional Authorization to the Cardholder c A Car Rental Company must estimate Transaction amounts for Authorization based on the following i Cardholder s intended car rental period ii Rental rate iii Applicable tax iv Mileage rates v Other allowed charges When the Cardholder waives insurance at the time of the rental the estimated Transaction amount must not include charges that cover potential vehicle damages or the insurance deductible amount After completing the estimate a Car Rental Merchant must obtain Authorization and include the date amount and Authorization Approval Code on the Transaction Receipt V3 1111 Page 28 d If Authorization is obtained for the estimated amount of a Car Rental Transaction Merchant must disclose the authorized amount to the Cardholder on the rental date If the estimated Transaction exceeds the Floor Limit obtain an Authorization and include the date amount and Authorization Approval Code on the Transaction Receipt e Merchant may obtain an Authorization for a new estimated Transaction amount and must include the date amount and Authorization Approval Code on the Transaction Receipt the Merchant subsequently estimates that based on the Cardholder s actual charges the Transaction amount will exceed the previously authorized amoun
34. of Yes or No questions about the Discover Card or the presenter and may direct Merchant s employee to request confirming identification from the presenter c If the Issuer s security representative is able to confirm the identity of the Discover Card presenter as a valid Cardholder or authorized user of the Discover Card the Issuer will give a positive Authorization Response for the Discover Transaction and the presenter will not be aware that anything unusual has transpired i f the Authorization Response is approved Merchant will be given an Authorization Approval Code and Merchant must manually enter the Authorization Approval Code into the Point of Transaction Terminal For Discover Transactions not conducted using a Point of Transaction Terminal Merchant must record the Authorization Approval Code on the Sales Slip ii If the Authorization Response is negative Merchant may not complete the Discover Transaction and should return the Discover Card to the Cardholder except as otherwise provided in this Operating Guide d Examples of suspicious situations include but are not limited to i The Discover Card cannot for whatever reason be clearly or completely imprinted ii The Discover Account Number embossed on the front of the Discover Card is different from the Discover Account Number printed on the Transaction Receipt when the Discover Account Number is captured electronically using a Point of Transaction Term
35. offered accommodations The Merchant must provide the Credit Transaction Receipt copy to the Cardholder iii The Merchant must provide all of the following without charge a One night s hotel accommodation if required b Transportation to the hotel as well as the airport c Airline transportation to the airport nearest the Cardholder s residence d Reasonable out of pocket expenses incurred by the Cardholder because the guaranteed accommodations were not available I Alternate Vehicle If the reserved vehicle is unavailable the Merchant must provide the following services to the Cardholder without charge Credit Transaction Receipt to refund the entire T amp E Advance Deposit Transaction amount and ii at least a comparable vehicle for the number of days specified in the reservation not to exceed 14 days or until the reserved vehicle becomes available whichever comes first 14 Central Reservation Service a Participation Requirements A Central Reservation Service Merchant may participate in the T amp E Advance Deposit Service to provide lodging accommodations as specified in this section and Section 3 u 13 of this Operating Guide b Central Reservation Service Responsibilities i A Central Reservation Service must V3 1111 Page 47 a Have a written contract with the lodging establishment executed by an officer or manager of the hotel and b Accept full responsibility for resolving Cardholder problems
36. omissions by any owner officer or employee of Merchant V3 1111 Page 73 EXHIBIT 1 VISA TRANSACTION RECEIPT REQUIREMENTS Table 1 through Table 6 specify the requirements for Electronic Transaction Receipts Table 1 Transaction Receipt for Transactions Completed at Point of Transaction Terminals TRANSACTION DATA REQUIREMENTS Account Number Effective through June 30 2006 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt may be disguised or suppressed Effective for Electronic Transaction Receipts generated from Point Of Transaction Terminals installed on or after July 1 2003 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Effective July 1 2006 except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Effective through June 30 2006 expiration date except for Limited Amount Terminal or Express Payment Service Transactions Effective for Electronic Transaction Receipts generated from Point of Transaction Terminals installed on or after July 1 2003 the expiration date must be disguised or suppressed on the Cardholder s copy of the Transaction Receipt Effective July 1 2006 the expiration date must be disguised or suppressed on the Cardholder s copy of the Transaction Receipt Merchant or Member n
37. or any other non consensual sexual behavior or d non consensual mutilation of a person or body part 3 Use of Verified by Visa Mark Merchant must display the appropriate Verified by Visa Mark to indicate its participation in the 3 D Secure Authenticated Payment Program An Electronic Commerce Merchant must not use the Verified by Visa Mark unless the Merchant is a 3 D Secure participant A 3 D Secure capable Electronic Commerce Merchant that displays the Verified by Visa Mark must not use the Mark a in a way that implies endorsement of any other product or service or b as an Acceptance Mark in any application 4 Merchant Web Sites a A Merchant Web Site must display at the point of payment choice either the Visa Flag Symbol or Visa Brand Mark in full color if it accepts all Visa Cards for payment or i Visa approved signage representing the Limited Acceptance category it has selected b A Merchant that accepts all Visa Cards may use the Visa Wordmark to indicate acceptance of Visa branded payment products only when a visual representation of an acceptance mark is not possible at the Merchant Web Site c The Visa Mark used must not be smaller than any other acceptance mark displayed by the Merchant 5 Mail Phone Order Merchants A Mail Phone Order Merchant must a Advise the Cardholder during the payment process that it accepts all Visa Cards for payment or that it accepts Visa Cards that are in the Limited Accept
38. other means of telecommunication and neither the Card nor the Cardholder or the Virtual Account Holder is present at the Merchant Outlet Mail Telephone Order Recurring Installment Billing or Electronic Commerce Transaction Indicator A VisaNet code that identifies a Transaction as one of the following a Mail order Transaction b Electronic Commerce Transaction c Phone order Transaction d Recurring Transaction e Installment Billing Transaction or f Other Mail Phone Order type Transaction Manual Capability A Point of Transaction Capability where a voice Authorization is obtained Manual Cash Disbursement A Cash Disbursement or Emergency Cheque Refund obtained with a Visa Card in a Face To Face Environment Manual Imprint An imprint of the embossed data on the front of the Card taken with a Manual Imprinter A Manual Imprint must not consist of an impression taken from the Card using pencil crayon or other writing instrument Manual Imprinter A mechanical device specifically designed to transfer the embossing on a Card and Merchant plate to a Sales Draft Mark A word name design symbol or other device or any combination thereof that an entity adopts to identify its goods or services Marks Area For Cards bearing the Visa Flag Symbol the designated area on the front of a Visa Card comprised of the Visa Flag Symbol positioned below the Dove Design hologram For Cards issued bearing the Visa Brand Mark the designated a
39. payment options Merchant understands and acknowledges that the Card Program services for such payment options are provided by the Card Issuer involved and not Bank and Merchant understands that Merchant s acceptance of any of those payment options may require execution of a separate merchant card acceptance agreement with those individual Card Issuers as applicable and that agreement will govern the completion processing settlement and other procedures relating to Transactions with those Card Issuers If Merchant experiences problems with transmission or delivery of those Card Issuers Transactions Merchant will be obligated to contact the appropriate service provider s for service Bank has no obligations with respect to the completion processing settlement and other procedures relating to Transactions with those Card Issuers b General Card Acceptance Guidelines 1 The following Card acceptance guidelines are general in nature and the detailed requirements set forth for certain types of Visa MasterCard and Discover Transaction as detailed in Sections 3 4 and 5 of this Operating Guide will control over these general guidelines 2 Visa has released the Visa International Operating Regulations which may be accessed at the www visa com web site The provisions of the Visa International Operating Regulations are incorporated into this Operating Guide by reference 3 MasterCard has published a March 2008 Merchant Rules Manual which is
40. proof of Authorization Authorization Request A Merchant s request for an Authorization Authorization Response An Issuer or its agent s reply to an Authorization Request or Account Number Verification The Visa U S A Inc Operating Regulations refers to the following types of Authorization Response a Approval Response b Decline Response c Pick up Response and d Referral Response Automated Dispensing Machine A Cardholder Activated Terminal that accepts payment for dispensed goods has Electronic Capability and accepts PINs V3 1111 Page 9 Automated Fuel Dispenser A Self Service Terminal or Automated Dispensing Machine that dispenses fuel such as gasoline diesel fuel or propane Bands Design A Visa Owned Mark used only as a component of the Visa Flag Symbol consisting of three horizontal bands in either a blue white and gold or b black white and gray BASE I A component of the V I P System that provides Authorization related services for Transactions that are subsequently cleared and settled through BASE II BASE Il A VisaNet system that provides Clearing and Settlement services to Members Bill Payment Transaction A Transaction that results from an agreement between a Cardholder and a Merchant where the Cardholder is billed for goods or services within an ongoing service cycle that is known and agreed upon in advance by both the Merchant and the Cardholder Transactions may occur monthly or on a periodic
41. such uses by Merchants must be approved in advance by Processor in writing Merchant shall not use the Discover Program Marks in such a way that customers could believe that the products or services offered by Merchant are sponsored or guaranteed by the owners of the Discover Program Marks Merchant recognizes that it has no ownership rights in the Discover Program Marks Merchant shall not assign to any third party any of the rights to use the Discover Program Marks 3 Merchant s license to use the Discover Program Marks shall terminate upon the earlier of i the termination of your Merchant Agreement or ii delivery of notice by Processor or Discover to Merchant of the termination of this license Merchant must immediately discontinue use or display of the Discover Program Marks immediately upon termination of the license b Disclosure of Data and Information 1 Merchant permits Processor to disclose Discover Transaction data and other information relating to the Merchant to Discover current and prospective Issuers current and prospective acquirers regulatory authorities and other entities to whom Discover is required to provide such information and to Discover s and each of their respective Affiliates agents subcontractors and employees for the purposes Discover deems necessary in its reasonable discretion including in connection with the performance of its obligations under its agreement with Processor and in connection with the mainten
42. that allows a Cardholder to use a Card for a partial or complete advance payment for recreational services or activities provided by an Advance Payment Service Merchant Advance Payment Service Merchant A non T amp E Merchant participating in the Advance Payment Service whose primary function is to provide recreational services related to tourism and travel such as the purchase of provisions and transport equipment or hiring of staff prior to the scheduled services These services include but are not limited to a fishing boat or scuba diving charters b hot air balloon rides and c whitewater rafting Advance Payment Service Transaction A Transaction completed by an Advance Payment Service Merchant Affiliate With respect to a Person any other Person that directly or indirectly through one or more intermediaries controls is controlled by or is under common control with that Person and the term control including the terms controlled by and under common control with means the possession directly or indirectly of the power to direct or cause the direction of the management and policies of such Person whether through the ownership of voting securities by contract or otherwise Affiliated merchant An entity that provides goods or services directly to a retail customer is an affiliate of a Member or an Affinity Partner and honors any charge or credit card plan as a means of payment Affinity Card A Visa Consumer Ca
43. the currency used to complete the Transaction must be disclosed on the Transaction Receipt j For a Dynamic Currency Conversion Transaction the Transaction Receipt must include the disclosures and Transaction related information specified in Section 3 u 9 of this Operating Guide 3 Cardholder Signature Merchant must not require the Cardholder to sign a Transaction Receipt until the final Transaction amount is entered on the Transaction Receipt 4 Multiple Transaction Receipts and Partial Payments a Merchant must include the total amount of goods and services purchased at the same time on a single Transaction Receipt A Transaction must not be divided by using two or more Transaction Receipts b The only exceptions to this requirement are i Purchases in separate departments of a multiple department store ii Individual Airline passenger railway or Cruise Line tickets issued to each passenger if required by carrier policy iii Partial amount paid by the Cardholder in cash check or both at the time of sale iv Delayed Delivery Transaction as specified in Section 3 u 2 of this Operating Guide v T amp E Advance Deposit Transaction as specified in Section 3 u 13 of this Operating Guide vi Installment Billing Transactions by a Mail Phone Order or Electronic Commerce Merchant as specified in Section 3 u 1 of this Operating Guide 5 Delayed or Amended Charges a Merchant may process delayed or amend
44. the local currency of the country where the Transaction occurred d If the encoded Account Number on a Visa Card cannot be read from the Magnetic Stripe Merchant must follow normal Authorization procedures and complete the Transaction using a Manual Imprinter unless Merchant qualifies to use the Card Verification Value 2 result code as a substitute for a Manual Imprint as specified in Section 3 k 5 e For Chip initiated Transactions the Magnetic Stripe may be read only if the Chip is not EMV or VIS Compliant or the Chip or Chip Reading Device is inoperable f Ifthe encoded Account Number on a Visa Electron Card cannot be read from the Magnetic Stripe Merchant must request another means of payment g Merchant must notify Merchant Bank when it changes the information on its Merchant plate h The Transaction Receipt must include all of the following i Transaction Date V3 1111 Page 32 ii Brief description of the goods or services sold returned or cancelled iii Price of the goods or services including applicable taxes or amount of adjustment or credit iv Imprint of the embossed legends from the Card and Merchant plate If the legends cannot be imprinted Merchant must include at least the Cardholder name or generic consumer identifier if one is printed or embossed on the Card and Account Number Merchant name and place of business i If the Transaction is from a U S embassy or consulate on foreign territory
45. the request is made prior to the specified cancellation date and time ii Provide a cancellation number and advise the Cardholder to retain it in case of a dispute iii Complete a Credit Transaction Receipt for the amount of the advance payment with all of the following information a Words Advance Payment on the signature line b Cardholder s Account Number and mailing address c Card expiration date d Cardholder name on the Card e Cancellation number iv Mail the Credit Transaction Receipt to the address indicated by the Cardholder within 3 business days from the Transaction Date 17 Preauthorized Health Care Transactions a Order Form i A Cardholder that purchases services from a Health Care Merchant that accepts Preauthorized Health Care Transactions must provide a completed Order Form to the Merchant ii The Cardholder must specify at least the following on the Order Form a Request for the services to be charged to the Cardholder s account b Assignment of insurance benefits to the Health Care Merchant c Authorization for the Health Care Merchant to charge the Cardholder s account for only that portion of the bill due subsequent to Merchant s receipt of any applicable insurance payment d Duration of time not to exceed one year for which permission is granted iii fa Preauthorized Health Care Transaction is renewed the Cardholder must provide a subsequent Order Form for continuation of ser
46. to be cancelled Cancellations must be initiated at the same location as the original Transaction but do not have to be at the same Terminal g A Credit Transaction request may be initiated only when the Debit Cardholder provides the written receipt from the original Debit Transaction A Credit Transaction must be processed to the same Debit Card as the original Transaction within one year following the original transaction date The Credit request must include the Transaction Date of the Debit Transaction and may not be for an amount that exceeds the original Transaction amount The merchandise Credit Transaction must be initiated by the same Merchant identified on the Transaction Receipt at which the original Debit Transaction was initiated but need not be at the same terminal or Merchant location h Merchant will fully cooperate with the Debit Networks their members and Bank in the resolution of Cardholder disputes The Debit Networks and Bank may investigate Merchant s practices relating to Online Debit Card Transactions as permitted by the Operating Rules i Card Issuers may charge Online Debit Card Transactions back to Merchant through the Debit Networks and Bank when permitted by the Operating Rules and under the time limits imposed by the Operating Rules Bank is note obligated to make Representments of Chargebacks but at Bank s option may assist Merchant in making Representments under the Operating Rules 18 EBT Transactions Elect
47. 0 Authorization d If the Issuer is not available process a normal Authorization Request 7 Mail Phone Order and Electronic Commerce Transactions a A Mail Phone Order Merchant must attempt to obtain the Visa Card expiration date and forward it as part of the Authorization Request b A Chip initiated Electronic Commerce Transaction must be sent Online for Authorization c An Electronic Commerce Merchant must attempt to obtain the Visa Card expiration date and forward it as part of the Authorization Request for Non Secure and Non Authenticated Security Transactions d The Floor Limit for an Electronic Commerce Transaction is zero e The Merchant must obtain Authorization for each Installment Billing Transaction This option is only available for goods from Mail Phone Order or Electronic Commerce Merchants as specified in Section 3 u 1 of this Operating Guide f For goods to be shipped a Mail Phone Order or Electronic Commerce Merchant may obtain Authorization on any day up to 7 calendar days prior to the Transaction Date This Authorization is valid if the Transaction amount is within 15 percent of the authorized amount provided that the additional amount represents shipping costs This provision does not apply if the last Authorization obtained was a Partial Authorization The shipment date is considered to be the Transaction Date 8 Aggregated Transactions a A Merchant assigned one of the Merchant Category Codes monit
48. A Direct Connect Merchant must provide the same level of security for its VisaNet Access Points that it provides to its other proprietary systems 7 Modifications or Enhancements A Direct Connect Merchant must not modify or enhance Visa owned software without the prior written consent of Visa U S A 8 Support Each participating Direct Connect Merchant must provide without cost to Visa reasonable support requested by Visa for installing the V I P System or BASE Il including V3 1111 Page 31 a Providing a location that meets the requirements of Visa for installing one or more VisaNet Access Point on the Direct Connect Merchant s premises b Providing a sufficient number of qualified personnel that the Direct Connect Merchant will train to meet Visa specifications c Maintaining V I P System and BASE II records documents and logs required by Visa and providing them at the request of Visa d Providing access to its premises and cooperating with Visa and its authorized agents in conjunction with the installation service repair or inspection of the VisaNet Access Points e Notifying Visa promptly of any failure of a VisaNet Access Point to operate properly on its premises or the premises of its Agent or independent contractor and f Providing computer time and a sufficient number of qualified personnel required to ensure prompt and efficient installation and use of the V I P System or BASE II Edit Package software s
49. Balance Discover Transaction Any Authorization for delayed delivery of merchandise or services will be valid for ninety 90 calendar days If delivery of the merchandise or service purchased will occur more than ninety 90 calendar days after the Deposit Authorization Merchant must obtain a subsequent Authorization for the Balance In addition Merchant must complete Address Verification at the time of the Balance Authorization and must obtain proof of delivery upon delivery of the service or merchandise Any delayed delivery Discover Transaction that is not conducted in accordance with the foregoing requirements may result in an assessment of fees and or may be subject to Dispute 5 Lodging Industry a Requirements for Guaranteed Reservations Merchant may accept a Cardholders reservation for accommodations and guarantee a room for late arrival after the normal 6 00 p m local time check in deadline if Merchant follows the procedures in this Section 5 p 5 a If the check in deadline passes without a cancellation of the reservation by the Cardholder Merchant may bill the Cardholder for one night s lodging plus applicable taxes provided Merchant has complied with the requirements of this Section 5 p 5 a i At the time of reservation Merchant must verify the Cardholder s desire to guarantee the Cardholder s reservation If a guarantee is requested Merchant must advise the Cardholder of the following rights an
50. Card must a Cut the Visa Card or Visa Electron Card horizontally so as not to damage the Magnetic Stripe Chip hologram if applicable embossed or printed Account Number if applicable and b Immediately send it to Merchant Bank or A VisaNet Interchange Center if Visa U S A is designated as the Merchant s Authorizing Processor 3 If the recovered Visa Card or Visa Electron Card was retained by a law enforcement agency the Merchant must provide a legible copy of the front and back of the Visa Card or Visa Electron Card to Merchant Bank or a VisaNet Interchange Center as applicable 4 Fora Non Reloadable Visa Prepaid Card recovered without a Pickup Response or a specific request from the Issuer the Merchant or the Acquirer must cut the Card and render it non usable p Transaction Receipt Completion 1 This section applies to both electronically and manually produced Transaction Receipts 2 Transaction Receipt Information a A Transaction Receipt if required or requested by the Cardholder must legibly contain the information specified in Exhibit 1 to this Operating Guide b A Merchant must enter the following information on the Transaction Receipt a brief description of the goods or services sold and ii the currency symbol or words denoting Transaction Currency as part of the Transaction amount c Ifa currency symbol or identification is not included on the Transaction Receipt the Transaction Currency defaults to
51. Cardholder that one night s lodging will be billed if the Cardholder has not a registered by check out time the day following the scheduled arrival date or b properly cancelled the reservation as specified in Section 3 u 11 e of this Operating Guide d Reservation Confirmation i The Lodging Merchant must provide a confirmation code and advise the Cardholder to retain it ii The Lodging Merchant must provide this information verbally and if requested must provide to the Cardholder a written confirmation with the following information a Cardholder name provided by the Cardholder Account Number and Card expiration date displayed on the Card b Confirmation code c Name and exact physical address of the establishment d Visa Reservation Service provisions relating to the Cardholder s obligation e Rate f Any other reservation details e Cancellation Period i A Lodging Merchant must accept all cancellations prior to the specified time ii The Lodging Merchant must not require more than 72 hours cancellation notification prior to the scheduled arrival date iii f the Cardholder makes the reservation within 72 hours of the scheduled arrival date the cancellation deadline must be no earlier than 6 00 p m Merchant Outlet time on the arrival date or date guaranteed iv If a Lodging Merchant requires that a Cardholder cancel before 6 00 p m Merchant Outlet time on the date guaranteed the Lodging Merchant mus
52. Cash Disbursement or any applicable account fees Presentment A Clearing Record that an Acquirer presents to an Issuer through Interchange either initially a first Presentment or after a Chargeback a Representment Priority Check out Agreement A written agreement that when bearing a Cardholder s signature authorizes a Lodging or Cruise Line Merchant participating in the Priority Check out Service to deposit a Transaction Receipt without the Cardholder s signature for the total amount of his her obligation Priority Check out Service A Visa service provided by Lodging and Cruise Line Merchants that allows a Cardholder to authorize use of his her Card for payment of the total obligation to the Lodging or Cruise Line Merchant with or without prior knowledge of the total amount by signing a completed Priority Check out Agreement Priority Check out Transaction A Transaction that a Lodging or Cruise Line Merchant participating in the Priority Check out Service completes Processing Fees The fees payable by Merchant to Bank for the Card Program services Bank provides to Merchant in connection with the Merchant Agreement as the same may be revised from time to time Processor The TransFirst entity specified in the Merchant Application Prohibited Merchant Category The list of activities and Merchants determined by Discover from time to time that disqualify an entity from eligibility to be a Merchant Quasi Cash Transactions A Transaction repre
53. D is kept confidential When a change to a Merchant account is required Merchant shall disclose its MID to the Bank representative as confirmation that the person requesting the change has authority If the person requesting the change discloses the proper MID Bank shall assume that person has the proper authority to make the change Merchant shall be fully liable for any changes to its account after disclosure of the MID Bank may request from Merchant additional information to further verify Merchant s identity 2 DEFINITIONS Acceptance The process by which Merchant allows a Card or electronic debit or credit entry to be used by a Cardholder as a means of payment Acceptance Mark A Visa Owned Mark that denotes acceptance for Payment or Cash Disbursement Account Funding Transaction An Electronic Commerce Transaction that meets the requirements specified in Section 3 u 4 of this Operating Guide Account Number An Issuer assigned number that identifies a Cardholder s account V3 1111 Page 8 Account Number Verification An electronic process by which a Member or its authorizing processor determines if there is negative information on an Account Number in the Exception File Account Number Verifying Terminal A Point of Transaction Terminal that a may be required at specified High Risk Locations b reads the Account Number encoded on the Magnetic Stripe or Chip c compares the last four digits of the encoded Account Number t
54. Data Manual 22 Visa Cash Back Service a General Requirements A Merchant may offer Visa Check Card II Cardholders the Visa Cash Back Service option under the following conditions i The service is offered as a part of a purchase Transaction ii The Transaction is processed using a Point of Transaction Terminal with PIN pad iii The PIN is used for Cardholder identification purposes iv The Transaction is processed through the Single Message System b Cash Back Limits i A participating Merchant may establish its own maximum cash back amount up to and including 200 The cash back amount must not exceed 200 ii The amount of cash back must be less than the total Transaction amount w Clearing and Settlement 1 Merchant may designate a third party that does not have a direct agreement with Merchant Bank as its agent for the direct delivery of data captured Visa Transactions to VisaNet for Clearing and Settlement If Merchant chooses to designate such third party Merchant must a Advise Merchant Bank that it will use a third party processor b Agree that Merchant Bank must reimburse the Merchant only for the amount of Visa Transactions delivered by that agent to VisaNet less the appropriate discount fee c Assume responsibility for any failure by its agent to comply with the Visa U S A Inc Operating Regulations including but not limited to any violation resulting in a Chargeback V3 1111 Page 50 4 MASTERCA
55. Processor may request a copy of the Merchant s return policy from Merchant at any time n Payments from Cardholders Merchant is prohibited from receiving or processing any funds representing a Cardholder s payment to an Issuer The Issuer has the sole right to receive payment from Cardholders for all Discover Transactions If for any reason Merchant receives a payment from a Cardholder Merchant must immediately contact Processor for further instructions o Card Absent Environment Transactions Card Absent Environment transactions are not subject to Dispute for Merchant s failure to obtain a Cardholder signature except as otherwise provided in this Section 5 0 provided that Merchant complies with the requirements of this Section 5 0 in addition to other applicable requirements in this Operating Guide 1 Discover Transactions over the Internet Prior to undertaking Discover Transactions over the Internet Merchant must register its website with Processor For each Discover Transaction over the Internet Merchant must comply with the following requirements in addition to the other requirements in this Operating Guide a Merchant may only accept those Internet Discover Transactions that are encrypted and otherwise transmitted in accordance with the Security Requirements Payment of Settlement Amounts may be withheld from Merchant until it can be verified that Merchant is in compliance with the Security Requirements Merchant is prohibited fr
56. RD PROGRAM REQUIREMENTS a Display of Marks and Acceptance Signage 1 A merchant is only permitted to use the MasterCard Marks pursuant to the Merchant Agreement with Bank 2 Display of the MasterCard Acceptance Mark a Merchant must prominently display the MasterCard Acceptance Mark at the point of interaction so that it is clearly visible and to indicate that the Merchant accepts Cards and Access Devices No other Mark or mark may be used for these purposes The preferred location to post the MasterCard Acceptance Mark at a physical point of interaction is the entrance nearby window or door of the Merchant or location and on the first screen of an electronic point of interaction Where it is not possible to post signage at the entrance of the Merchant or location posting the MasterCard Acceptance Mark so that it can easily and readily be seen within the location will satisfy the requirement Where it is not possible to post the MasterCard Acceptance Mark on the first screen of an electronic point of interaction posting the MasterCard Acceptance Mark on the payment screen will satisfy the requirement b A remote services Merchant must display the MasterCard Acceptance Mark wherever payment options are presented c AMark may not appear on the Web site of a supplier to a Merchant or of any other entity that is not itself a Merchant such as by way of example and not limitation an entity that is contracted by the Merchant to deliver the p
57. Receipts ii Limited Amount Terminal Transactions ii Transactions under 25 completed at a Point of Transaction Terminal with Contactless Payment capability iv Transactions completed with a Visa Micro Tag v Small Ticket Transactions and vi No Signature Required Transactions 5 Key Entered Transactions in a Face to Face Environment a If Merchant is certified by Visa Merchant may validate the Card Verification Value 2 on the Card when the Magnetic Stripe cannot be read A Card Verification Value 2 result code M is considered an Imprint for the purposes of the Fraudulent Transaction Card Present Environment Reason Code 81 Chargeback b Merchant may request certification from Visa if all the following requirements are met Merchant has been certified as a CISP Level 1 compliant and a report of compliance is on file with Member Bank i Merchant has maintained a face to face fraud related Chargeback rate below 0 02 and ii Merchant has a key entered Transaction rate below 3 5 of total Transactions l Authorizations 1 General a Merchant must request Authorization for every Transaction unless specified otherwise prior to completing the Transaction b Merchant must request Authorization for the total amount of the Transaction prior to completing the Transaction unless specified otherwise in Section 3 1 c Merchant must not use an arbitrary or estimated amount to obtain Authorization except as
58. Rules and Procedures manual Information about the SDP Program can be found at www mastercard com sdp 7 Storage of Account Cardholder and Transaction Data A Merchant and any DSE must not store in any system or in any manner discretionary card read data CVC 2 data PIN data Address Verification Service AVS data or any other prohibited information as set forth in the MasterCard Standards including but not limited to Section 10 2 of the Security Rules and Procedures manual except during the Authorization process for a Transaction that is from the time an Authorization Request message is transmitted and up to the time the Authorization Request Response message is received MasterCard permits storage of only the Card Account Number expiration date Cardholder name and Service Code each of which if stored must be stored in a secure environment to which access is limited and then only to the extent that this data is required for bona fide purposes and only for the length of time that the data is required for such purposes If the Corporation becomes aware of a Merchant s noncompliance with any Standard the Corporation may notify the Acquirer of such noncompliance and ay assess the Acquirer and the Acquirer must promptly cause the Merchant to discontinue the noncompliant practice A notification by the Corporation with respect to at any one location of a Merchant requires the Acquirer to ensure that the Merchant is in compliance with the Stand
59. The Merchant may deposit the Transaction Receipt for the delayed delivery deposit before delivery of the goods or service iv The Merchant must not deposit the Transaction Receipt for the balance before delivery of the goods or service c For Delayed Delivery Transactions the Merchant may retain the deposit if the a Merchant received a Decline Response for the balance b the balance was not paid by other means and c the Transaction Receipt states that the deposit is non refundable 3 Recurring Transactions a Merchant Requirements i A Recurring Services Merchant must a Obtain Cardholder permission to periodically charge for recurring services in a format including but not limited to 1 E mail or other electronic record 2 hard copy correspondence b Retain this permission for the duration of the recurring services and provide it upon Issuer request V3 1111 Page 37 c Provide a simple and easily accessible online cancellation procedure if the Cardholder request for goods or services was initially accepted online ii Fora Recurring Services Transaction a Merchant must a Obtain an Authorization b Write Recurring Transaction on the signature line of the Transaction Receipt c For a recurring Electronic Commerce Transaction include on the Transaction Receipt the frequency and duration of the Recurring Transactions as agreed to by the Cardholder d procedure if the Cardholder request for goods or services wa
60. Transaction A single purchase of goods that is divided into two or more installment payment Transactions originates at a Mail Phone Order or Electronic Commerce Merchant and is authorized and processed as specified in Section 3 u 1 of this Operating Guide Interchange The exchange of Clearing Records between Members with respect to Visa MasterCard Transactions or between a Member and Discover with respect to Discover Transactions International Transaction A Transaction where the Issuer of the Card is not located in the Transaction Country International Transaction Receipt A Transaction Receipt evidencing an International Transaction Internet Domain Name A network name associated with an organization Internet Payment Service Provider An online entity that contracts with an Acquirer to provide payment services to Sponsored Merchants Issuer The Member or the Card Association or an agent of the Card Association that enters into the contractual relationship with the Cardholder for the issuance of one or more Cards Visa and MasterCard only issue Cards through Members Discover may issue Cards directly or through a financial institution Limited Acceptance A term describing a Merchant s option to accept one category of Visa Cards and not another Categories consist of a Visa Credit and Business Category and b Visa Debit Category Limited Acceptance Merchant A category of Merchant that accepts either but not both of the following
61. V Data and for Contactless Devices DCVV Data which is capable of being captured by a Point of Transaction Terminal Trade Name A name used to identify a business and to distinguish its activities from those of other businesses Trade Secret Any formula pattern device or compilation of information that is used in one s business and that gives one an opportunity to obtain an advantage over competitors who do not know or use it Transaction The act between a Cardholder and a Merchant involving a Card including without limitation a Cash Advance that results in the generation of a Transaction Receipt Transaction Certificate A Cryptogram generated by a Chip Card at the end of all offline and Online approved Transactions The Transaction Certificate provides information about the actual steps and processes executed by the Card Chip Reading Device and Merchant during a given Transaction and can be used during dispute processing Transaction Country The Country in which the Merchant Outlet is located regardless of the Cardholder s location when a Transaction occurs For Transactions completed aboard an aircraft the Transaction Country is that in which the Merchant deposits the Transaction Receipt Transaction Currency The currency in which a Transaction is originally completed Transaction Date The date on which a Transaction between a Cardholder and a Merchant occurs Transaction Documentation Collectively Transaction Receipts Credit
62. V3 1111 OPERATING GUIDE FOR MERCHANT CARD PROCESSING 1 OPERATING PROCEDURES a Introduction This Operating Guide describes the procedures and methods for submitting Card Transactions for payment obtaining Authorizations responding to Chargebacks and media Retrieval Requests and other aspects of the operations of our services Processor is a full service financial transaction processor dedicated among other processing services to facilitating the passage of Merchant s Transaction Receipts back to the thousands of institutions that issue the MasterCard Visa and Discover Cards carried by Merchant s customers Capitalized terms used in this Operating Guide shall have the meanings given in either the Merchant Agreement or Section 2 of this Operating Guide The terms of this Operating Guide form a part of and are incorporated into the Merchant Agreement Merchant Bank and Processor reserve the right to amend the terms of the Merchant Agreement and this Operating Guide as provided in the Merchant Agreement This Operating Guide focuses primarily on the MasterCard Visa and Discover operating rules and regulations If Bank provides Authorization processing or Settlement of Transactions involving Cards other than MasterCard Visa and Discover Merchant should also consult those independent Card Issuers proprietary rules and regulations If Merchant selects to accept Cards issued by any one or more of American Express JCB or Diners Club as
63. a Transaction Receipt or a Credit Transaction Receipt a Retrieval Request These Retrieval Requests assist Bank in responding on Merchant s behalf to Cardholder and Issuer questions about Transactions processed by Merchant b It is important that Merchant fulfill Retrieval Requests within the time specified on the request from Bank If Merchant fails to do so a Chargeback may result Merchant is solely responsible for any deficiencies in Card Transaction data submitted to Bank 16 Chargebacks a A Cardholder or an Issuer has the right to question or dispute a Transaction A Chargeback is the reversal of a Card Transaction When a Chargeback occurs the amount of the Transaction is debited subtracted from Merchant s Settlement Account Reasons for Chargebacks include but are not limited to i The Transaction Record or any material information it contains as provided by Merchant such as the Card Account Number expiration date of the Card merchant description purchase amount Transaction date and Authorization date is illegible incomplete incorrect or unsigned or is not transmitted to Bank within the required time limits ii Merchant knew or by following proper practices should have known that the Card was not to be honored iii The Transaction was completed with a counterfeit or altered Card or before the valid date or after the expiration date of the Card iv Merchant did not obtain Authorization or did not provide a
64. a security requirements such as those relating to Transaction information storage and disclosure Merchant must notify Merchant Bank of its use of any Agent that will have any access to Cardholder data k Cardholder Identification 1 Identification Validation a A Merchant must validate the Cardholder s identity in a Face To Face Environment as specified in Table 1 Table 1 Identification Validation 2ixce WO Ow w SEII jz 5 Ow 4 W q a0 o p 39 95 55 lt Z 2a a bel Zo So DESCRIPTION TESA OA Review positive identification such as an unexpired passport or driver s license to validate the Cardholder s identify Ni Ni Indicate the positive identification on the Transaction Receipt including e Description of identification including any serial number and expiration date and V V e Cardholder name if different than the embossed or printed name and address Verify both of the following 2 e Signature on the Card or Visa Electron Card matches the signature on the Transaction Receipt and V V V identification presented This signature may be different from the name embossed or printed on the Card e Cardholder resembles the person described or depicted in any photograph intended for identification on the Card Visa Cards Compare the first four digits of the embossed or printed Account Number to the four digits printed above or below the Account Number Ni J Record the printed four digits on the
65. able The amount of the No Show Transaction must not exceed the value of 7 2 days rental including tax for a Specialized Vehicle reservation or 2 one day s rental including tax for a Peak Time reservation b Cardholder name Account Number and expiration date as displayed on the Card c The words No Show on the signature line of the Transaction Receipt iii The Car Rental Company must obtain an Authorization Approval Code for the No Show Transaction i Alternate Specialized Vehicles If the Specialized Vehicle is unavailable the Car Rental Company must provide the following services at no charge to the Cardholder a comparable vehicle at another car rental establishment for the reservation period and ii transportation to the alternate car rental establishment j Alternate Peak Time Reservation Vehicles i fthe vehicle guaranteed as a Peak Time reservation is unavailable the Car Rental Company must provide the Cardholder with a comparable vehicle no later than one hour from the scheduled rental time ii f a comparable vehicle cannot be provided within one hour the Car Rental Company must provide the following services at no charge to the Cardholder a transportation to the Cardholder s destination b delivery of a comparable V3 1111 Page 45 vehicle to the Cardholder s destination within 8 hours from the scheduled rental time and c transportation vehicle delivery and one day s car rental 13 T am
66. able agent has adopted security procedures that comply with the Security Requirements regardless of whether Discover Processor an Issuer or Cardholder has experienced damage as a result of such noncompliance In addition Discover and Processor may each contact any of Merchant s agents without prior notice to Merchant if Discover or Processor determines or reasonably suspects that any such Person is not in full compliance with the Security Requirements If Merchant does not ensure that Merchant and each of Merchant s agents complies with the Security Requirements by a mutually acceptable deadline Processor may terminate the Merchant Agreement and the ability of Merchant to accept Discover Cards and or assess noncompliance fees to Merchant Merchant is responsible for any Disputes resulting directly or indirectly from Merchant or any of Merchant s agent s failure to comply with the Security Requirements and this Operating Guide and any resulting costs expenses damages or other losses experienced by Discover Processor any Issuer or Cardholder c Merchant shall bear financial responsibility for fraudulent transactions and any damages that Discover Processor Issuers and or Cardholders incur as a result of the theft loss or unauthorized use or disclosure of Cardholder information or Discover Transaction information by Merchant or any of Merchant s agents Merchant may be assessed a fine in the aggregate amount of i US 7 50 for each notification t
67. actions while in its employ e The Merchant may deposit a prepayment within the time limits specified in Section 3 q 2 of this Operating Guide if the Merchant advises the Cardholder of the immediate billing at the time of the Transaction for prepayment of services excluding estimates for services to be provided and i full prepayment of custom ordered merchandise manufactured to the Cardholder s specifications For prepayment of services the Transaction Date is considered to be the date of Cardholder prepayment f An Advance Payment Service Merchant may deposit a Transaction Receipt representing a partial or complete advance payment as specified in Section 3 u 16 of this Operating Guide g A Merchant with multiple Merchant Outlets must ensure that Merchant Bank is able to identify the location of each Transaction on the Transaction Receipt and i include this identification in the Clearing Record 2 Deposit Time Limits Each time period specified in this Section 3 q 2 includes the Transaction Date and the receipt date a A Merchant must deposit Visa Transaction Receipts to Merchant Bank or its designated Agent within 5 calendar days of the Transaction Date except as specified in Section 3 q 2 b and Section 3 q 2 c of this Operating Guide b A Merchant must deposit Transaction Receipts for Delayed Delivery Transactions within 5 calendar days of the date of both the Deposit and final payment c A Merchant w
68. age 67 6 Fees to Cardholders Notwithstanding the provisions of Section 5 d Cash Advance Merchants are prohibited from assessing or otherwise imposing a fee or surcharge on any Cardholder for any Cash Advance transaction The amount of the Cash Advance transaction reflected in Cash Advance Sales Data submitted for Settlement must be the amount of cash disbursed to the Cardholder If any fees were assessed to the Cardholder in connection with a Cash Advance including a fee paid in cash after the transaction was completed the entire amount of the Cash Advance transaction is subject to Dispute r Security Features amp Risk Fraud Management Merchant must review the validity of Discover Cards presented for Discover Transactions and Cash Advances and verify that any Discover Card presented is valid prior to initiating a Discover Transaction Additionally Merchant must implement and maintain appropriate and effective security controls and fraud prevention detection measures in full compliance with all Requirements of Law the Security Requirements and the Operating Rules Merchant is responsible for monitoring for abnormal Discover Transaction activity and when abnormal or unusual Discover Transaction activity is suspected or detected for taking appropriate action to prevent fraud 1 Card Security Features Merchant must review the validity of Discover Cards presented for Discover Transactions must verify that any Discover Card presented is valid p
69. ales Slip must also include the following additional items i Cardholder s street address city state and zip code and country if other than U S If the Cardholder s address on the identification presented in connection with the Cash Advance transaction is different than his her current address the Cash Advance Merchant shall record the most current address on the Sales Slip ii Type number and state of issuance of at least one of the following pieces of government issued photographic identification presented by the Cardholder unless the writing of this number is prohibited by applicable law in which case the Cash Advance Merchant shall identify the type of identification Driver s License Passport U S Armed Forces Identification U S Alien Registration or Non Driver State Identification Card iii Name or initials of Cash Advance Merchant employee issuing the Cash Advance 5 Submitting Cash Advance Sales Data Merchant must transmit all Cash Advance Sales Data in the form and format specified by Processor and in accordance with the requirements of Section 5 1 provided that Processor may reject and shall not be obligated to provide Settlement to Merchant for any Cash Advance Sales Data received more than ten 10 calendar days after the date of the Cash Advance If Processor accepts Cash Advance Sales Data more than ten 10 calendar days after the date of the Cash Advance the Cash Advance is subject to Dispute V3 1111 P
70. ame and location or the city and state of the Automated Dispensing Machine or Self Service Terminal Location Code Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Space for Cardholder signature except for e Transactions in which the PIN is an acceptable substitute for Cardholder signature e Limited Amount Terminal Transactions e Self Service Terminal Transactions e Express Payment Service Transactions A legend identifying the party to whom it will be delivered e g Member copy Merchant copy Cardholder copy except for Express Payment Service Transactions Authorization Approval Code if applicable except for Express Payment Service Transactions For a Visa Cash Back Service Transaction the amount of cash provided to the Visa Check Card Cardholder 1 See Table 3 and Table 6 for exceptions V3 1111 Page 74 Table 2 Data Requirements Visa Electronic Commerce Transaction Receipt TRANSACTION DATA REQUIREMENTS Merchant Name Merchant Online Address Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Unique Transaction identification number Purc
71. an order is placed b Merchant must request Authorization for a Deferred Payment Transaction on the date the Cardholder is billed which must be no later than 90 days from the initial shipment date and i include disclosure of the deferred payment process including the exact date of the billing with the initial shipment to the Cardholder c The billing date is considered to be the Transaction Date 14 Automated Fuel Dispenser Transactions a An Automated Fuel Dispenser Merchant must i Obtain an Authorization for the exact amount of the Transaction ii Use the Status Check Procedure or iii For an Online Check Card Transaction obtain an Authorization for an amount based on the estimated Transaction amount not to exceed 50 b Merchant may use the Status Check Procedure if the the Transaction amount is as follows For a Visa Fleet Card Transaction not more than 150 and ii For all other Cards not more than 75 c An Automated Fuel Dispenser Merchant may request a Cardholder s ZIP code and perform an Address Verification Service inquiry for its Automated Fuel Dispenser Transactions d A Merchant that participates in the Partial Authorization service must i Include the Partial Authorization indicator in the Status Check message as specified in the appropriate V I P System User s Manual ii Be able to set the Automated Fuel Dispenser terminal to only dispense fuel up to whichever is lower a The amount
72. ance and disclosure of information contained in the Consortium Merchant Negative File Information which may be disclosed includes a detailed information about the Card Transactions conducted by Merchants including Card Transaction data required by these Operating Regulations the Technical Specifications and the Dispute Rules Manual to be delivered to us in connection with Authorization Requests Sales Data and Dispute responses and b aggregate and individual Merchant information and detail about the Card Transactions accepted by Merchants including the Merchant Category Code assigned by you to a Merchant Collective and detailed information about individual Merchant s Card Transactions Disputes and other information reasonably required by us during an investigation of a Merchant Information regarding the aggregate number type and kind of Card Transactions accepted by Merchants individually and in the aggregate in the Authorized Jurisdiction Bank may disclose to Discover and permit Discover to disclose to current and prospective Acquirers current and prospective Issuers regulatory authorities and other entities to whom we are required to provide such information and to our and each of their respective Affiliates agents subcontractors and employees the information about Merchant and its principals as disclosed above 2 A Chargeback may be debited to a Merchant s Settlement Account for numerous reasons outlined in this Operatin
73. ance by the Sponsored Merchant f immediately terminate a Sponsored Merchant if required by the Acquirer or Visa and g ensure that a terminated Merchant is not permitted to be a Sponsored Merchant An Internet Payment Service Provider IPSP may contract and process Transactions with multiple Acquirers 5 An Internet Payment Service Provider may not a operate as a Sponsored Merchant of another Internet Payment Service Provider or b deposit Transactions on behalf of another Internet Payment Service Provider 6 Each Sponsored Merchant contract with an Internet Payment Service Provider must contain contract requirements which comply with the applicable requirements on Merchants set forth in the Visa Operating Regulations and this Operating Guide 7 An Internet Payment Service Provider must provide comprehensive lists including names of principals and country of domicile for all of its Sponsored Merchants and Transaction reports to Merchant Bank and upon request to Visa 8 An Internet Payment Service Provider may only deposit Transactions from Sponsored Merchants within the Member s Bank s jurisdiction The location of the Sponsored Merchant determines where a Transaction takes place not the country of the Internet Payment Service Provider The Merchant country code included in the Authorization and Clearing Records must contain the country code for the Sponsored Merchant 9 A Merchant or Internet Payment Service Provider IPSP mu
74. ance category it has selected and b Display in its catalog or other selling material either the Visa Flag Symbol or Visa Brand Mark in full color if it accepts all Visa Cards for payment or i Visa approved signage representing the Limited Acceptance category it has selected 6 Automated Fuel Dispenser Merchants An Automated Fuel Dispenser Merchant must display the appropriate Visa Owned Marks on or near the Automated Fuel Dispenser to indicate which Cards it accepts for payment 7 Promotional Material a Merchant may not use any Visa Owned Mark for promotional or advertising purposes in any media unless all of the following are true A Merchant Bank s name and city appear on the material i Merchant Bank distributes the material and ii the the Merchant must comply with the applicable sections of all of the following A Visa U S A Inc Operating Regulations B Visa International Operating Regulations Volume General Rules C Visa International Card and Marks Specifications for Cards bearing the Visa Flag Symbol and D Visa Product Brand Standards for Cards bearing the Visa Brand Mark available through Visa Online b Merchant may indicate in a single advertisement display or notice that Visa Card services are available and ii use the Visa Owned Marks or if Merchant has selected Limited Acceptance the signage associated with the Limited Acceptance category it has selected on promotional p
75. and software that a Member uses to access the VisaNet systems through a router and switch configuration VisaNet Copy Request and Fulfillment Service An automated process for transmitting Copy Requests Retrieval Requests and Fulfillments and monitoring the integrity and quality of the service through Visa Resolve Online VisaNet Documentation Automation Service An automated process for transmitting documentation supporting Chargebacks and Representments and monitoring the integrity and quality of the through Visa Resolve Online 3 VISA PROGRAM REQUIREMENTS a Required Information 1 The Visa Operating Regulations require that a Merchant provide the following information to Merchant Bank a Merchant s Doing Business As DBA name b Merchant s legal name c Merchant s Merchant Outlet location s including street address city state and nine digit ZIP code d Merchant s Federal Taxpayer Identification Number and identification of the number as either a Federal Employer Identification Number FEIN or Social Security Number SSN e Merchant s entity status for example corporation partnership sole proprietor nonprofit or other V3 1111 Page 20 f the full first and last name including middle initial for the Merchant if the Merchant is a sole proprietor g the Merchant Category Code and if applicable any secondary Merchant Category Code s h an indication if the Merchant is a small and or disadvantage
76. ank or at http usa visa com business accepting_visa ops_risk_management cisp html V3 1111 Page 10 Cardholder Verification The process of validating a Cardholder s identity through verification of the Cardholder s signature or PIN or other methods as required in the Visa Operating Regulations Cash Advance The disbursement of currency including foreign currency to a Cardholder by a Cash Advance Merchant in connection with the presentation of a Discover Card at a branch location excluding an ATM in accordance with the terms of Section 5 q but not including convenience checks balance transfers cash back points quasi cash or Cash Over Cash Advance Merchant A Merchant that is a financial institution that has been authorized by Processor to dispense Cash Advances Cash Disbursement Currency including travelers cheques paid out to a Cardholder using a Card Cash Over The dispensing of cash by a Merchant in connection with a Discover Transaction for the purchase of goods or services Central Reservation Service An entity that acts as a reservations resource for various geographically contiguous lodging establishments Chargeback A Transaction that an Issuer returns to an Acquirer Cheque A traveler s cheque that a Member issues and that bears the Visa Owned Marks Chip An electronic component designed to perform processing or memory functions Chip Card A Card embedded with a Chip that communicates information to a
77. ansaction Receipt In addition to the Transaction Receipt requirements specified in Electronic and Manual Transaction Receipts Exhibit 1 to this Operating Guide a Transaction Receipt must include the following information e Price of the goods or services in the Merchant s local currency accompanied by the currency symbol next to the amount e Total price in the Transaction Currency accompanied by the words Transaction Currency and the currency symbol next to the amount V3 1111 Page 41 e Exchange rate used e Any additional mark up commission or fee for the Dynamic Currency Conversion service e A statement in an area easily seen by the Cardholder that The Cardholder was offered a choice of payment in the Merchant s local currency The choice of currency is final Either the currency conversion will not be conducted by Visa or the Merchant or Merchant Bank as applicable is providing the currency conversion service Each of the above data elements must be show separately V3 1111 Page 42 Table 4 Dynamic Currency Conversion T amp E Express Service Transactions TRANSACTION ENVIRONMENT OPERATING REQUIREMENTS T amp E Express Service Transactions Documentation Hotel Checkout or Car Rental Return For a T amp E Express Service Transaction the Merchant must document the terms of the Dynamic Currency Conversion in a written agreement The agreement must be signed by the Cardholder in
78. approved in the Partial Authorization Response by the Issuer or b The Status Check approval amount allowed by the appropriate Card type for a Visa Fleet Card 150 for all other Visa Cards 75 V3 1111 Page 30 iii Submit an Authorization reversal for either a The difference between the amount approved in the Partial Authorization Response and the final Transaction amount of the Cardholder s purchase or b The full amount of the Partial Authorization Response if the Cardholder does not continue with the Transaction iv Submit a Clearing Transaction only for the amount of fuel dispensed and approved 15 Store and Forward Transactions a Merchant must attempt to obtain Authorization for a Store and Forward Transaction as soon as its link to the Single Message System is re established b A Store and Forward Transaction that receives a Decline Response to an Authorization Request may be resubmitted if the Decline Response is one of the following insufficient funds Response code 51 i exceeds approval amount limit Response code 61 or iii exceeds withdrawal frequency limit Response code 65 c Transactions resubmitted as specified in Section 3 1 15 b must not contain the PIN or the full contents of any track on the Magnetic Stripe or equivalent data from the Contactless Payment chip and i may be resubmitted once each day for up to 9 calendar days after the original Transaction Date until an Approval Res
79. ar alone in the Clearing Record if a the Cardholder accesses the Internet Payment Service Provider Web Site directly and b the Internet Payment Service Provider name is visible to the Cardholder during the selection order and payment processing services If the Cardholder accesses a Sponsored Merchant s Web Site and is then linked to the Internet Payment Service Provider Web Site for payment the Internet Payment Service Provider name must appear in the Clearing Record in conjunction with the Sponsored Merchant s name c Display of Marks and Acceptance Signage 1 General Requirements Merchant must comply with the requirements for usage of the Visa Marks set forth in the Visa Operating Regulations Merchant must display the Visa Marks to indicate which Visa Cards it accepts for payment A Merchant that accepts Visa Cards may choose Limited Acceptance A Limited Acceptance Merchant must display only the Visa approved signage representing the Limited Acceptance Category it has selected Merchant is not required to display the Visa Marks if it does not deal with the general public 2 A Merchant an Internet Payment Service Provider IPSP or a Sponsored Merchant that displays a Visa Owned Mark on its Website must not accept Cards for the purchase or trade of photographs video imagery computer generated images cartoons simulation or any other media or activities including but not limited to a child pornography b bestiality c rape
80. ard If the Discover Card cannot be imprinted because it does not have embossed features Merchant should determine whether the Discover Card displays the features of a valid Discover Card described in Section 5 r 1 Ifa Discover Card imprint does not display all of the embossed features that are capable of being V3 1111 Page 57 imprinted as indicated in Section 5 r 1 the Discover Transaction may be subject to Dispute or a Dispute of the Discover Transaction may be resolved against Merchant Failure of Merchant to properly imprint the Transaction Documentation in such circumstances may result in a Dispute of the Discover Transaction 4 Valid Prepaid Identity Known Cards and Prepaid Gift Cards may be issued without embossed Discover Card features and are incapable of being imprinted Merchant shall not manually enter Discover Transaction information onto the Point of Transaction Terminal for such Cards If Merchant manually enters Discover Transaction information for a Prepaid Card with unembossed Discover Card features into a Point of Transaction Terminal the Discover Transaction may be subject to Dispute and Merchant may lose such Dispute 5 If Merchant is permitted to submit paper Sales Slips Merchant must imprint the Discover Card on the Sales Slip as described in Section 5 j 3 In addition Merchant should fill in the information described below and ensure that all printed and written information is clearly readable on all copies
81. ards at all locations of the Merchant that are subject to the Merchant Agreement s A Member may request that the Corporation s Secretary review an assessment for a Merchant s noncompliance with a Standard 5 DISCOVER PROGRAM REQUIREMENTS a Use of Discover Program Marks 1 Merchant agrees to prominently display at each of Merchant s locations in catalogs and websites signage decals or logos showing the Discover Acceptance Mark in such manner and with such frequency as accorded any other third party credit charge debit stored value or other payment card accepted by Merchant Merchant s use or display of the Discover Program Marks must be in accordance with the terms of this Operating Guide the Merchant Agreement or in accordance with any other specifications provided by Discover 2 Merchant is prohibited from using the Discover Program Marks other than as expressly authorized in writing by Processor Additionally Merchant shall not use the Discover Program Marks other than to display decals signage advertising and other forms depicting the Discover Program Marks that are provided to Merchant by Processor pursuant to the Card Program services or otherwise approved in advance in writing by Processor Merchant may use the Discover Program Marks only to promote the services covered by the Discover Program Marks by using them on decals indoor and outdoor signs websites advertising materials and marketing materials provided that all
82. at the Account Number matches the Account Number on the Transaction Receipt if applicable c Authorization and Deposit The Merchant must comply with normal Authorization and Deposit requirements for Lodging and Cruise Line Merchants as specified in Section 3 u 11 and Section 3 q of this Operating Guide d Transaction Receipt Delivery The Lodging or Cruise Line Merchant must mail the Transaction Receipt copy the itemized bill and if requested the signed Priority Check out Agreement to the Cardholder within 3 business days of the Cardholder s departure e Retention The Merchant must retain the itemized bill and signed Priority Check out Agreement for a minimum of 6 months after the Transaction Date 16 Advance Payment Service a Advance Payment Procedures i A participating Merchant must comply with all of the following a Accept all Cards in its category of acceptance as specified in Section 3 d 1 a for advance payment when the Cardholder agrees to the Advance Payment Service b Determine the amount of the Advance Payment Service Transaction The Transaction amount must not exceed the total price of the reserved services or activity c Inform the Cardholder of the following 1 Total price of the services or activity 2 Advance payment amount 3 Advance payment confirmation code 4 Cancellation terms Ifa cancellation request is not received within the cancellation time specified by the Merchant the Cardholder mu
83. ated Authorizations If a lodging industry Merchant seeks to obtain an Authorization for the estimated amount of charges to be billed to a Cardholder Merchant must comply with the procedures in this Section 5 p 5 e At the beginning of the Cardholder s stay and on a periodic basis thereafter Merchant may obtain Authorization as set forth in Section 5 q for an amount equal to the estimated total of a Cardholder s charges based upon the Cardholders intended length of stay and other criteria Merchant must comply with the following procedures when obtaining an Authorization for estimated charges expected during the length of a Cardholder s stay and for any additional Authorizations obtained if the actual charges exceed the estimated charges for which an Authorization was already obtained i At check in Merchant may estimate the Cardholder s total charges based upon the following criteria and obtain an Authorization for the amount of that estimate i intended length of stay ii room rate iii applicable taxes iv applicable service charges and v any miscellaneous charges as dictated by experience ii Merchant must monitor the actual charges incurred during the course of a Cardholder s stay to ensure that the actual charges do not exceed the amount of the original estimated Authorization In the event the charges begin to exceed the original estimated Authorization the following conditions apply a Merchant must submit an Authori
84. ation Requests related to Recurring Payment Plan initiated prior to the termination of the Discover Card Account An Issuer s positive Authorization Response for one Recurring Transaction is not a guarantee that any future Recurring Transacation Authorization Request will be approved or paid If Discover Card Acceptance by Merchant is suspended or terminated for any reason Merchant may not submit any Authorization Requests for Recurring Payment Plans during the suspension or after the termination of the Merchant Agreement If Merchant submits Sales Data for a Recurring Transaction that has not received a positive Authorization Response the Recurring Transaction may be subject to Dispute and or Merchant may pay higher fees If a Cardholder disputes any Recurring Transaction or Merchant s performance of its obligations in connection with the Recurring Payment Plan a Dispute may be initiated with respect to the disputed Recurring Transactions and any prior Recurring Transactions for which Merchant has received Settlement c Merchant must obtain the Cardholder s written or electronic approval to charge amounts to the Cardholder s Discover Card Account in accordance with a Recurring Payment Plan If Merchant uses the Internet or another electronic process to receive a Cardholder application for a Recurring Payment Plan Merchant must retain all electronic evidence of the Cardholder s approval of the Recurring Payment Plan The Cardholder s approval whe
85. ation Approval Code is not properly designated in the Sales Data and or the Discover Transaction may be subject to Dispute V3 1111 Page 55 2 If Merchant is capable of accepting Partial Authorization Approvals as indicated in the Authorization Request which Authorization Request shall comply with the requirements herein the Issuer may provide a Partial Authorization Approval If a Merchant receives a Partial Authorization Approval the Merchant should not complete a Discover Transaction for an amount greater than the amount indicated in the Partial Authorization Approval and if the Merchant does the excess amount may be subject to Dispute 3 Each Authorization Request must fully comply with the applicable provisions of this Operating Guide Merchant may be obligated to pay higher fees if Merchant submits Sales Data to Processor regarding Discover Transactions for which Merchant did not submit an Authorization Request that fully complies with the requirements of this Operating Guide and or the Discover Transaction may be subject to Dispute 4 If Merchant receives a Referral Response in response to an Authorization Request the Merchant should contact Processor for additional information A Referral Response is not a positive Authorization Response If Merchant subsequently completes a Discover Transaction where the Issuer provided a Referral Response without subsequently receiving a positive Authorization Response and corresponding Authoriza
86. attended Point of Transaction Terminal where the a Visa Card or Visa Electron Card is present b Cardholder signature is obtained c Full unaltered contents of track 1 or 2 of the Magnetic Stripe Chip or Contactless Payment chip are read and transmitted and d POS Entry Mode Code iii Merchant obtains only one Authorization Approval Code for each Transaction on the Transaction Date iv Transactions are entered into Interchange through VisaNet and authorized through the V I P System as specified in the appropriate VisaNet User s Manuals v The Authorization Request and Clearing Record comply with the VisaNet Clearing Message Content Standards and Required Data for Authorization Requests and Responses vi The Transaction amount sent in the Authorization Request and the Clearing Record must be in the same currency 21 Telephone Service Transactions A telephone service Merchant must not accept payment for a telephone call when the Card number is a entered via touchtone key pad or b provided to an operator This prohibition excludes the following i Magnetic Stripe Telephone Transactions ii Transactions for which the Issuer has a contract with the carrier iii Transactions involving telephone services that have been explicitly approved by Visa and provide appropriate risk controls iv Telephone orders for goods and services v Transactions provided by Inbound Teleservices Merchants as specified by Visa in the Merchant
87. ble law Other Acceptance Mark An acceptance mark other than the Discover Acceptance Mark that appears on a Discover Card including without limitation the China UnionPay Mark as approved by Discover from time to time Other MasterCard Card Any MasterCard branded device program or card that is not defined as debit or Debit MasterCard Card Outbound Telemarketing Merchant initiated contact with a Cardholder via a telephone call or a mailing other than a catalog that instructs the Cardholder to call the Merchant These solicitations include but are not limited to discount buying clubs discount travel clubs membership clubs credit card protection registration services cosmetics health care products and vitamins This definition also includes up sell Merchants V3 1111 Page 15 Partial Authorization Approval An Authorization Response approving a Transaction in an amount other than the full amount of the Authorization Request Peak Time The period of time designated by a Car Rental Company during which a Cardholder may use his her Card to reserve a car that will be guaranteed under the Visa Reservation Service The Peak Time may include any of the following a legal holidays including 3 day weekends b resort rentals during seasons best suited for the resort s activities and c special events that draw attendees from outside the local area Permanent Establishment A fixed place of business through which a
88. ble to Bank for credit of Transactions and debit of Credit Transaction Receipts Chargebacks Processing Fees and reimbursement of any fines or fees assessed by Card Associations or other governmental agency or entity having authority Settlement Amount The daily net amount resulting from Clearing Single Message System A component of the V I P System that processes Online Financial and Deferred Clearing Transactions Site Data Protection Program SDP A program developed by MasterCard Intl that defines the standard of due care and enforcement for protecting sensitive Cardholder information Information regarding the SDP Program may be obtained from Merchant Bank or at www mastercard com sdp Specialized Vehicle A unique class of rental vehicle not in a Car Rental Company s main rental fleet for example mini vans four wheel drive vehicles selected sports models or luxury and vintage vehicles that does not constitute more than 5 percent of the Merchant s total US based rental fleet Sponsored Merchant An Electronic Commerce Merchant that contracts with an Internet Payment Service Provider to obtain payment services Status Check An Authorization Request for 1 Status Check Procedure A procedure where a a Lodging or Automated Fuel Dispenser Merchant requests an Authorization for 1 as specified in Section 3 u 14 of this Operating Guide or b a Merchant requests an Authorization for 1 for the purpose of account verifica
89. bmit electronic Discover Transaction data for bona fide deposits partial payments and Recurring Payment Plans that comply with the requirements in Section 5 p 2 Processor will notify Merchant if all or a portion of the Sales Data received cannot be processed due to invalid missing or unreadable data In the event that all or a portion of the Sales Data is invalid missing or unreadable Merchant is responsible for i retrieving and resubmitting valid readable Sales Data in proper form immediately and ii the risk of any loss with respect to the Discover Transactions described in the Sales Data including for damage to or destruction of Sales Data whether or not held by Processor until complete usable Sales Data is successfully received by Processor V3 1111 Page 58 3 Merchant is required to transmit Sales Data to Processor in the form and format specified by Processor from time to time and to the location that Processor specifies All Sales Data transmitted to Processor must conform to this Operating Guide 4 Merchant must submit Sales Data in an Approved Currency Merchant may not convert Merchant s local Approved Currency into another Approved Currency including U S Dollars prior to submitting the Sales Data to Processor All Settlement resolution of Disputes and reporting will be reflected in U S Dollars 5 Merchant may not quote or otherwise advise Cardholders of the total Discover Transaction amount in U S Dollars if th
90. bsent Transactions All Card Absent Transaction must be processed in accordance with the provisions set forth in this Operating Guide To assist Merchant in reducing the risk of fraud and or Chargebacks on Card Absent Transactions Merchant must use Address Verification Service AVS For Internet Transactions it is also recommended that Merchant utilize the Verified by Visa and MasterCard SecureCode Cardholder authentication services More information about AVS Verified by Visa and MasterCard SecureCode may be obtained from Processor 14 After the Sale a Closing Out Merchant s Electronic Terminal For each Card Transaction that Merchant processes electronically Merchant will complete a procedure called closing the batch to reconcile those Transactions and prevent balancing and deposit errors A batch represents all Card Transactions processed during a given period of time Merchant should close its batch daily Follow the general guidelines below to close a batch i Use a calculator to manually total the Transaction Receipts and Credit Transaction Receipts for the batch ii Display Terminal totals by using the Display Totals Batch Inquiry function iii Compare Terminal totals with the calculator totals If out of balance print list of Terminal entries and compare the entries to the Transaction Receipts and make any necessary adjustments in the Terminal iv For each batch transmitted ensure that the Merchant Identification Number and al
91. by MasterCard b Merchant shall not use the mark or logo on its stationery letterhead envelopes or the like nor in its solicitation provided however that Merchant may use one of the mark or logo in close proximity to the payment or enrollment space in the solicitation in a size not to exceed 1 1 4 inches in horizontal length if a logo is employed or if a mark is used in type not to exceed the size of the type used in the major portion of the text on the same page provided further that the legend Accepted for Payment must accompany the mark or logo used and must be the equivalent size of the mark or logo In no case however shall Merchant use any of the logo on the front or first page of its solicitation One truthful statement that Merchant is directing or limiting its offer to MasterCard Cardholders may appear in the body of the solicitation other than in close proximity to the payment or enrollment space subject to the limitation that only the word mark may be used ii the word mark may not a exceed in type size the size of any other type on the same page b differ in color from the type used in the text as differentiated from the titles on the same page c be as large or as prominent as the name of Merchant d be the first item appearing on any page nor e in any other way be the most prominent element of the page ii Merchant s name and or logo must appear prominently on the same page as the mark and iv the followin
92. cement authorities Merchant its employees vendors and other agents should never physically detain or harm the Discover Card presenter Merchant agrees that Merchant its employees vendors and other agents will not initiate an arrest of a Discover Card presenter for use of a Discover Card except at the Issuer s explicit request Merchant its employees vendors and other Agents that cause the arrest or prosecution of any person for use of a Discover Card without the Issuer s direct request or that fail to use reasonable lawful means in effecting an arrest which has been requested by the Issuer will bear all responsibility for claims liabilities costs and expenses resulting from such action and the resulting arrest or prosecution if any Notwithstanding the foregoing Merchant is not required to comply with any Issuer s request to cause the arrest of a Discover Card presenter g Pick Up Cards Some Issuers may request that Merchant retain a Discover Card that is suspected of being counterfeit in the possession of someone other than the Cardholder or a person authorized by the Cardholder to use the Discover Card or that is suspected of being used fraudulently Under such circumstances Merchant may receive a pick up Card or call center message in response to an Authorization Request When complying with such a request Merchant must use reasonable lawful means to retain the Discover Card Once retained the Discover Card must be cut i
93. cessor of a material change in status to any of Merchant s or Merchant s agents security compliance assessments and reports processes procedures technology and policies Merchant agrees that Discover or Processor or a third party designed by either may at their discretion periodically perform information security compliance reviews and audits including vulnerability scans of Merchant and any or Merchant s agents Such reviews and audits may include onsite inspections and passive internet scans to detect vulnerabilities Nothing in this Section 5 s 5 or in Section 5 s 6 will be construed as limiting Merchant s or any of Merchant s agents obligations to comply with the Security Requirements and this Section 5 s 5 and Section 5 s 6 While Processor our its agents may periodically perform a review of Merchant and Merchant s agents security as described above Merchant is solely responsible for Merchant s and the Merchant s agents compliance with the Security Requirements and this Section 5 s 5 and Section 5 s 6 b Merchant and any of Merchant s agent may not retain any CID CVV or DCVV Data regardless of whether such data is in written electronic or other form captured in connection with any Discover Transaction The CID CVV or DCVV Data may not be recorded on Transaction Documentation or any other evidence of the Discover Transaction including in any records maintained by Merchant or Merchant s agents 4 Security Failur
94. ch Installment Billing Transaction amount may vary due to Currency Conversion Rate fluctuations c Ensure that the sum of the Installment Billing Transactions does not include any finance charge or exceed the total price of the goods d Authorize all Transactions ii The Merchant must not add finance charges to an Installment Billing Transaction b Transaction Receipt Deposits A Merchant must not deposit the first installment Billing Transaction with Merchant Bank until the shipment date of the goods The Merchant must deposit subsequent Installment Billing Transaction Receipts at either of the following intervals 30 calendar days or more or monthly anniversary of the shipment date same day of each month 2 Delayed Delivery Transactions a Authorization A Merchant completing a Delayed Delivery Transaction must obtain Authorization for each Transaction Receipt on each Transaction Date b Transaction Receipt Deposits i The Merchant must a Assign a separate Authorization number for each Transaction Receipt and b Write the following information on the appropriate Transaction Receipt 1 Words Delayed Delivery 2 Word Deposit or Balance as appropriate 3 Authorization date and Authorization Approval Code if applicable ii The Merchant must deposit the Transaction Receipt for a T amp E Advance Deposit Transaction or Installment Billing Transaction as specified in Section 3 q of this Operating Guide iii
95. conducting in the Discover Transaction provided Merchant is not required to obtain or retain the Cardholder s signature for Discover Transactions if otherwise excepted herein and iii a Non Service Terminal may not be used to conduct Cash Over transactions even if Merchant with the Non Service Terminal is otherwise permitted to provide Cash Over as described in Section 5 p 6 Unlike a CAT where the Cardholder s signature is not required if the Discover Transaction at the CAT otherwise complies with the requirements in this Operating Guide Discover Transactions at Non Service Terminals require a Cardholder signature Discover Transactions at Self Service Terminals should comply with the same requirements for Discover Transactions conducted using Merchant attended standard Point of Transaction Terminals If Merchant s Non Service Terminal does not require and obtain the Cardholder s signature for each Discover Transaction Merchant will be subject to higher fees for the Discover Transaction and the Discover Transaction may be subject to Dispute q Cash Advance Policies If approved in advance by Processor Merchants that are financial institutions referred to as Cash Advance Merchants may dispense Cash Advances to Cardholders as described in this Operating Guide Cash Advances are available only in face to face transactions between Cardholders and Cash Advance Merchant personnel in accordance with the terms and conditions set forth in this Operati
96. correct and legible Authorization Approval Code on the Transaction Receipt v The Transaction Receipt is a duplicate of another Transaction Receipt represents one of two or more Transactions arising from a single purchase or the Transaction has been submitted to another merchant card processor vi The Cardholder disputes participating in or approving the Transaction signing the Transaction Receipt or the sale delivery quality or performance of the purchase the Cardholder alleges that return of goods or a Credit Transaction Receipt was improperly refused or the Cardholder alleges that a Credit Transaction Receipt issued by Merchant was not processed for the Cardholder Account vii The amount on the Transaction Record submitted to Bank differs from the amount on the copy required to be delivered to the Cardholder viii The Cardholder has asserted what the Cardholder believes is a good faith claim or defense against the Transaction ix The Charge is in violation of any law x Any other Card Transactions that Bank is or would be required to pay repurchase or Chargeback by virtue of Operating Rules or otherwise processed under this Agreement or any agreement with any Affiliated merchant xi The Signature on Transaction Receipt is not a reasonable facsimile of signature on Card xii A Retrieval Request was not fulfilled within time allowed xiii The Transaction was fraudulent or the related purchase was not a bona fide purchase
97. counterfeit Discover Cards iii excessive Chargebacks iv excessive submission of Sales Data for Discover Transactions not authorized by the Cardholder or an Authorized User v reasonable determination by Processor following a fraud audit or investigation that the Merchant engaged in fraudulent activity vi factoring as defined below vii presentation of Sales Data that was not for valid Discover Transactions between the Merchant and a Cardholder viii collusion by Merchant with a Discover Card thief or counterfeiter to submit Sales Data for unauthorized or illegitimate Discover Transactions and ix Merchant noncompliance with the applicable Merchant Agreement this Operating Guide or the Operating Rules c Factoring is considered Merchant fraud Factoring is expressly prohibited In instances where a Cardholder expresses a complaint or dissatisfaction with the service supplied the Discover Transaction may be subject to Dispute and such Dispute will be the responsibility of the Merchant whose MID was submitted with the Sales Data This means a Merchant that submitted the Sales Data on behalf of another Person will suffer any losses associated with the Dispute of Discover Transactions Also if any fraud is involved the Factoring Merchant could face criminal prosecution s Miscellaneous V3 1111 Page 71 1 Compliance with Requirements of Law Merchant Agreement Operating Guide and Operating Rules Merchant is responsible for perf
98. ctron Transactions An Authorization Request for a Visa Electron Transaction must originate at an ATM or Point of Transaction Terminal and include the entire unaltered contents of track 1 or track 2 of the Magnetic Stripe or Chip A Point of Transaction Terminal that does not have Online capability regardless of whether the terminal is Chip enabled must not display the Visa Electron Symbol or Visa Brand Mark with the Electron Identifier 4 Lodging Merchant Cruise Line Merchant and Car Rental Company Transactions This section governs special Authorization procedures for Lodging Merchants Cruise Line Merchants and Car Rental Companies a A Lodging Merchant must estimate Transaction amounts for Authorization based on the following i Cardholder s intended length of stay at check in time ii Room rate iii Applicable tax iv Service charge rates v Merchant s procedure for estimating additional ancillary charges vi Other allowed charges as specified in Section 3 0 5 of this Operating Guide After completing the estimate a Lodging Merchant must obtain an Authorization and include the date amount and Authorization Approval Code on the Transaction Receipt b A Cruise Line Merchant may estimate Transaction amounts for Authorization as follows i Merchant must base the initial Authorization Request on the Cardholder s signed statement of intent to purchase goods or services aboard ship for a Cardholder specified amount
99. d Fleet Card Visa Commercial or Visa Signature Business on the front of the Card Confidential Consumer Cardholder Information An Account Number Transaction Information or other personally identifiable information relating to a Consumer Cardholder Consortium Merchant Negative File The database maintained by Discover to which will be added the name of any Merchant whose Discover Card Acceptance or Merchant Agreement an acquirer or Discover terminates for one of the reasons specified in Section 5 r 3 b Consumer Cardholder A Cardholder other than the Cardholder of a Commercial Visa Product Contactless Card Transaction A Discover Transaction in which the Discover Card including an RFID enabled Discover Card a key fob or Mobile Commerce Device wirelessly transmits and the Merchant wirelessly captures Track Data including DCVV Data required for Authorization of the Discover Transaction and for creation of the related Sales Data Contactless Payment A form of Visa payment conducted in the Card Present Environment at the Point of Transaction through a Visa approved wireless interface such as radio frequency or infrared technology Contactless Payment Terminal A Point of Transaction Terminal that reads Magnetic Stripe Data on a Contactless Payment chip through a Visa approved wireless interface and that includes Magnetic Stripe reading capability Contactless Payment Transaction A Transaction completed at a
100. d date if present and Valid Thru iv The Cardholder name and if applicable business name is displayed on the front of the Discover Card c The features described below are found on Prepaid Gift Cards however the placement of these features may vary Merchants must use the electronic Authorization procedures described in Section 5 q to obtain Authorization for Discover Transactions with unembossed Prepaid Cards If Merchant key enters Discover Transaction data into a Point of Transaction Terminal or uses stand in Authorization Services to obtain Authorization Responses for Discover Transactions involving such Prepaid Cards Merchant may lose a Dispute of such a Discover Transaction i The front of the Discover Card will display either the DFS Hologram or Not Valid for more than 500 or another fixed denomination e g 25 00 50 00 etc of U S dollars ii Depending on the issue date of the Discover Card the Discover Acceptance Mark or the Discover NOVUS Acceptance Mark will appear on the front or back of the Discover Card iii The embossed stylized D appears on the front of the Discover Card iv The front of the Discover Card may display Temporary Card Prepaid Card or Gift Card or Electronic Use Only v Prepaid Gift Cards accepted at a limited specific list of Merchants are not required to include the DFS Hologram and are not required to bear the Discover Acceptance Mark or the D
101. d Preauthorization requests may be initiated at or in proximity to the point of sale All requests must be initiated through use of a PIN and a Magnetic Stripe reader and shall be for a specified dollar amount Funds shall not be transferred until an Authorization is received for the actual dollar amount of the Transaction e At Merchant s option Merchant may offer cash back to Cardholders Cashback provided Merchant transmits the Cardholder s requested Cashback amount request to the Card Issuer as part of the Authorization procedures and receives an Authorization for the Transaction If Authorization is denied with a Decline Response that indicates the Cashback Transaction has been denied solely because the Cashback portion would cause the Cardholder to exceed a limit on cash withdrawals imposed by the Card Issuer Merchant should inform the Cardholder that the Transaction was denied solely because of the cash withdrawal limit but that a new Transaction in the amount of the purchase alone may be approved f Merchant may void a Transaction electronically but only if the voiding Transaction is entered in accordance with the Operating Rules which typically require the voiding Transaction to occur before midnight of the calendar day on which the original Transaction was initiated as well as Cardholder re entry of the PIN used for the original Transaction and Merchant s transmission of the trace number and exact dollar amount of the Transaction
102. d business and i the termination date and reason for termination if the Acquirer Merchant relationship is terminated 2 In addition to the requirements specified above Merchant Bank is required to collect the following information from each Electronic Commerce Merchant that uses a Merchant Certificate a the name of the Merchant Certificate issuer b the Merchant Certificate number c the Merchant Certificate expiration date and d the ownership status of Merchant Certificate shared or individual b Internet Payment Service Providers 1 An Internet Payment Service Provider has financial liability for Transactions entered into Interchange on behalf of Sponsored Merchants as well as responsibility for any disputed Transactions credits or customer service related expenses The acts and omissions caused by a Sponsored Merchant shall be treated as those of the Internet Payment Service Provider An Internet Payment Service Provider is liable for all acts and omissions caused by its Sponsored Merchants including but not limited to a Chargebacks b failure to provide service and c related legal costs 2 An Internet Payment Service Provider may not provide payment services to the following merchant types a buyers clubs membership clubs b credit counseling or credit repair services c credit protection identity theft protection d direct marketing subscription merchants e infomercial merchants f Internet
103. d obligations and must inform the Cardholder of the room rate and reservation confirmation number a Accommodations of the type requested will be held until check out time on the day following the scheduled arrival date b If the Cardholder seeks to cancel the reservation the Cardholder must do so before 6 00 p m local time on the scheduled arrival date Resorts may move the 6 00 p m local time deadline back no more than three hours to 3 00 p m local time provided that the Cardholder has been verbally informed of the date and time the cancellation privileges expire c When the reservation is made Merchant should provide a telephone number for the Cardholder to call to cancel the reservation d If the reservation is not cancelled within the allowed time frame and the Cardholder does not use the accommodation and Merchant does not use or rent the room to another guest Merchant may bill the Cardholder for a no show charge equal to one night s lodging plus applicable taxes ii After confirming a Cardholder s understanding of the responsibilities and obligations related to the guaranteed reservation and the cancellation of reservations Merchant must obtain and maintain a record of the following information for the guaranteed reservation i Cardholder s name as it appears on the Discover Card if present ii Discover Account Number and Discover Card expiration date if present iii anticipated arrival date and length of
104. d time frames iv The Car Rental Company must also advise the Cardholder that it will retain the entire T amp E Advance Deposit Transaction amount or the amount specified in the Merchant s stated policy if the Cardholder has not a rented the vehicle by the end of the last day of the rental period used to determine the amount of the Transaction or b cancelled the reservation within the specified time frames v Under the T amp E Advance Deposit Service a Merchant must not charge for a No Show Transaction e Transaction Receipt Completion The Merchant must complete a Transaction Receipt with the following information i Advance deposit amount ii Cardholder name Account Number and expiration date as specified in the Visa Operating Regulations iii Cardholder telephone number and mailing address iv The words Advance Deposit on the Transaction Receipt signature line v Confirmation code V3 1111 Page 46 vi Scheduled check in vehicle rental or embarkation date vii Date and time that cancellation privileges if any expire without deposit forfeiture f Transaction Receipt Authorization and Deposit i The Merchant must follow normal Authorization procedures If it receives a Decline Response the Merchant must notify the Cardholder and must not deposit the Transaction Receipt ii Ifthe Transaction is authorized the Merchant must follow normal Deposit requirements for Lodging Merchants Cruise Line Merchants
105. ded only to a non face to face Transaction e g the requirement for an alternate payment channel means that Mail Telephone Order and Electronic Commerce Merchants whose payment channels are exclusively non face to face may not impose a Convenience Fee d A flat or fixed amount regardless of the value of the payment due e Applicable to all forms of payment accepted in the alternative payment channel f Disclosed prior to the completion of the Transaction and the Cardholder is given the opportunity to cancel and g Included as a part of the total amount of the Transaction 2 A Convenience Fee may only be charged by the Merchant that actually provides goods or services to the Cardholder A Convenience Fee may not be charged by any third party A Convenience Fee must not be added to a Recurring Transaction g Prohibitions Merchant must not 1 Accept Cardholder payments for previous Visa Card or Visa Electron Card charges incurred at the Merchant location 2 Establish a minimum or maximum Transaction amount as a condition for honoring a Visa Card or Visa Electron Card 3 Require a Cardholder to complete a postcard or similar device that includes the Cardholder s Account Number Card expiration date signature or any other Card account data in plain view when mailed 4 Add any surcharge to Visa Card Transactions travelers cheque and Foreign Currency fees and commissions are not considered surcharges 5 Add any tax to Transaction
106. depicted in stylized lettering Visa Mini Card A small size Visa Consumer or Commercial Visa Product Card issued in conjunction with a corresponding full sized Visa Card Visa Owned Marks The Marks owned by Visa Visa Prepaid Card A Card used to access funds in a a Prepaid Account or b Card where monetary value is stored on a Chip Visa Program A program through which a Member provides payment services to Visa Cardholders or Merchants by acting as an Issuer an Acquirer or both Visa Program Marks The Marks used in connection with the Visa Program Visa Purchasing A Visa Purchasing Card issued as specified in the Visa Operating Regulations Visa Reservation Service Visa services provided by a a Lodging Merchant to guarantee accommodations or b Car Rental Company to guarantee a Specialized Vehicle or Peak Time reservation Visa Secure Electronic Commerce A payment service that provides payment information security over the Internet and other networks for Cardholders using a Card and Cardholder Access Device to complete an Electronic Commerce Transaction Visa TravelMoney Card A prepaid card that may be purchased and used worldwide to obtain local currency at Visa ATM Network or Plus ATM locations Visa Wordmark A Visa Owned Mark consisting of the word Visa VisaNet The systems and services through which Visa delivers Authorization Clearing and Settlement services to Members VisaNet Access Point Visa equipment
107. e transaction was completed in an Approved Currency other than U S Dollars Such quotes significantly increase Cardholder inquiries and Disputes because the U S Dollar equivalent at the time of the Discover Transaction is not necessarily the actual amount billed to the Cardholder due to fluctuating exchange rates between the Discover Transaction date and Settlement of the Discover Transaction 6 Merchant must keep original copies of all mail telephone order forms and other documentation relating to Discover Transactions including copies of Transaction Documentation for the later to occur of i 365 calendar days following the Discover Transaction date or ii the resolution of any pending or threatened Disputes claims disagreements or litigation involving or relating to the Discover Transaction Merchant must keep a microfilm or other copy of Sales Data for no less than three 3 years from the date of the Discover Transaction Merchant must provide Processor with a copy of any Transaction Documentation Sales Data or any other documentation retained by Merchant within 22 calendar days of Processor s request for such information as indicated in the Retrieval Request In addition Merchant is responsible for retaining copies of documentation for a period sufficient to enable Merchant to respond to any Disputes that may be initiated with respect to Discover Transactions If Merchant does not provide a copy of any Transaction Documentation Sales Data or
108. e Merchant for the purchase of goods or services Merchant may not adopt any practice that unfavorably discriminates against or provides for unequal and unfavorable treatment of any Person who elects to pay using a Discover Card versus any other credit charge debit stored value or other payment card accepted by Merchant except with respect to your proprietary cards e g private label and loyalty cards and gift cards e Discover Card Checks Discover Card checks are frequently issued to Cardholders Merchant agrees to accept Discover Card checks on a basis consistent with the terms of Merchant s policy applicable to the acceptance of other payment card checks Merchant should handle these Discover Card checks like any other personal check drawn upon a bank in United States f Termination of Discover Card Acceptance 1 Processor may immediately terminate Merchant s rights of Discover Card Acceptance under any of the following conditions i Merchant does not meet the eligibility requirements to be a Merchant under the Operating Rules ii Merchant does not meet standards for proof of Identity and creditworthiness iii Merchant s corporate structure does not comply with the definition of Merchant in the Operating Rules iv Merchant operates a business in a Prohibited Merchant Category or that otherwise creates excessive risk v Merchant is a Sanctioned Person vi Merchant s business operations do not or if they were conducted i
109. e Point of Transaction Capability types a Authorization Only Capability b Data Capture Only Capability c Electronic Capability d Manual Capability and e Semi Electronic Capability Point of Transaction Terminal A device used at the Point of Transaction that has a corresponding Point of Transaction Capability The Visa U S A Inc Operating Regulations refer to the following types of Point of Transaction Terminals a Account Number Verifying Terminal b ATM c Automated Dispensing Machine d Chip Reading Device e Contactless Payment Terminal f Limited Amount Terminal g Magnetic Stripe Telephone h Magnetic Stripe Terminal and i Self Service Terminal Preauthorized Health Care Transaction A Transaction completed by a Health Care Merchant for which a Cardholder has provided written permission to the Merchant to charge the Cardholder s Visa account for services Preauthorized Payment Cancellation Service A service that enables Visa Card Issuers to stop payment on Preauthorized Transactions Preauthorized Transaction A Transaction for which a Cardholder has given advance permission to periodically charge his or her account Preauthorized Transactions include but are not limited to Recurring Transactions Installment Billing Transactions and Preauthorized Health Care Transactions Prepaid Account An account established by an Issuer with previously deposited funds which will be decremented by a purchase Transaction
110. e Transaction Receipt if the Internet Payment Service Provider or its Sponsored Merchants cause undue economic hardship to the Visa system including but not limited to a qualifying for the Global Merchant Chargeback Monitoring Program or the Merchant Chargeback Monitoring Program or b generating excessive Copy Requests c Delivery to Cardholder i A Merchant must provide a completed copy of the Transaction Receipt to the Cardholder as specified in Section 3 p of this Operating Guide An Electronic Commerce Merchant may deliver the Transaction Receipt in either of the following formats a electronic e g e mail or fax or b paper e g hand written or terminal generated ii An Electronic Commerce Merchant must not transmit the Account Number to the Cardholder v Special Merchant Card Acceptance Services 1 Installment Billing Transactions a General Requirements A Mail Phone Order or Electronic Commerce Merchant may offer Cardholders an Installment Billing Transaction option under the following conditions i If it offers an Installment Billing Transaction option the Merchant must a Disclose in writing the terms including but not limited to whether the installment terms are limited to certain goods that a Cardholder may purchase The written disclosure must also include the shipping and handling charges and any applicable tax b Inform a Cardholder not billed in the Transaction Currency of the Merchant that ea
111. e following conditions 1 the Merchant A is a department agency or instrumentality of the U S Government or B is a corporation owned or controlled by the U S Government or C is a Merchant whose primary business is reflected by one of the following MCCs i MCC 8220 Colleges Universities Professional Schools Junior Colleges or ii MCC 8244 Schools Business and Secretarial or iii MCC 8249 Schools Trade and Vocational and B the maximum Transaction amount does not differentiate between Issuers and C the maximum Transaction amount does not differentiate between MasterCard and another acceptance brand 5 Prohibited Transactions A Merchant must not submit for payment into Interchange any transaction a that represents the refinancing or transfer of an existing Cardholder obligation that is deemed to be uncollectible or b that arises from the dishonor of a Cardholder s personal check or c that arises from the acceptance of MasterCard Cards at Terminals that dispense Scrip 6 Other Forms of Payment A Merchant must not accept any payment from a customer in any other form for example cash or check with respect to a charge for goods or services that are included on a transaction information document TID resulting from the use of a MasterCard Card A Merchant also must not accept a Card as payment for products or services for which the Merchant has received or expects to receive payment in any other form whether fro
112. e following services without charge i Credit Transaction Receipt to refund the entire T amp E Advance Deposit Transaction amount The Lodging Merchant must provide the Credit Transaction Receipt copy to the Cardholder ii Comparable accommodations at an alternate establishment for the number of nights specified in the reservation not to exceed 14 nights or until the reserved accommodations become available at the original establishment whichever comes first iii f requested two 3 minute telephone calls and messages forwarding to the alternate establishment iv Transportation to the alternate establishment and return to the original establishment If requested the Lodging Merchant must provide daily transportation to and from the alternate establishment k Alternate Cruise Line Accommodations i If the reserved accommodations are unavailable and no comparable accommodations are available on the ship the Merchant may offer the following services without charge a a comparable cruise within the same approximate sailing dates and number of sailing days specified in the reservation and b any extra nights accommodations or air fare to a different port city necessitated by the Cardholder s acceptance of alternate accommodations ii The Merchant must provide a Credit Transaction Receipt to refund the entire T amp E Advance Deposit Transaction amount if comparable accommodations are not available or the Cardholder does not accept the
113. e the Cardholder of the situation Merchant must use its best judgment to avoid any confrontation If Merchant retains a Card the Merchant should promptly call the Merchant Bank or ask the telephone authorization center for instructions on how to turn in the Card Do the following Keep a record of the Card account number List the following information and turn it into Bank with the Card o The account number o Merchant s business name and address o The person who recovered the Card and o The reason for recovery Code 10 or Authorization inquiry Merchant may receive a cash reward for properly recovering a Card Rewards are offered by the Associations Issuers and some Merchants 11 Turning in Lost Cards If Merchant finds a lost Card or a customer turns one in or leaves one behind contact the Issuer for instructions on how to turn in the Card 12 Completing Sales Slips Merchant must record each Transaction and Credit Transaction Receipt by following procedures specified in this Operating Guide The copy of the Transaction Receipt given to the Cardholder must contain the information specified in this Operating Guide 13 Card Absent Transactions A Merchant may only accept Card Absent Transactions if the Merchant has been authorized to do so in the Merchant Application or in writing by Bank Card Absent Transactions have substantially higher risk of Chargeback and fraud Merchant assumes all risks associated with accepting Card A
114. ected or actual data security breach Merchants and any Merchant agent must provide Processor with the following information concerning any suspected or actual data security breach i the date of such breach ii details concerning the data compromised e g Discover Account Numbers and expiration dates Cardholder names and addresses iii the method of such breach iv Merchant s security personnel contacts and those of any of Merchant s agents affected by such breach v the name of any Person including any law enforcement agency assisting Merchant with Merchant s investigation of such breach and vi any other information which Discover or Processor may reasonably request from Merchant and or Merchant s agents concerning such breach including any forensics report s Merchant will provide the information listed in i vi as soon as is reasonably practicable and the information listed in i V3 1111 Page 72 v shall in any event be provided to Processor within 48 hours of your initial notification to Processor of such breach Merchant and any of Merchant s agents must provide Processor with copies of any reports concerning such breach as soon as practicable Merchant must not issue and Merchant must prevent Merchant s agents from issuing any press release or other public announcement concerning such breach until after you have provided Processor with the information requested in i v above All press releases shall be issued in acco
115. ed Account Number Matches the first four digits of the account number Signature Panel Visa is repeated on the back of the Card Account Number and the Card Verification Value CVV2 are indent printed on panel in reverse italic type Hologram Depicts a dove in flight Should reflect light and change as Merchant rotates the Card Visa Logo Features taller letters and brighter gold and blue colors Microprinting borders the logo Security Character Is embossed to the right of the valid dates Product Symbol B C or P is embossed to the left of security character on some Cards b MasterCard Card Account Number The Account Number starts with the number 5 Embossing extends into the hologram Signature Panel MasterCard is repeated on the back of the Card Account Number and Card Validation Code 2 CVC2 are indent printed on panel in reverse italic type Hologram Depicts three dimensional globes MasterCard is printed repeatedly in background Should reflect light and change as Merchant rotates the Card MasterCard Logo Features larger letters black outlines behind white letters and fewer lines joining circles V3 1111 Page 2 Security Character Is embossed to the right of the valid dates c Discover Signature Panel Discover is repeated on the back of the Card The Account Number is followed by the Card Identification Data CID
116. ed charges if the Cardholder has consented to be liable for delayed or amended charges for a T amp E Transaction All delayed or amended charges must be processed to the Cardholder s account within 90 calendar days of either check out disembarkation or car return date or ii for a parking ticket or traffic violation date of notification to the Merchant by the civil authority b These charges may include costs for room food or beverage charges taxes mileage charges fuel insurance rental fees parking tickets and other traffic violations and must not include charges for loss theft or damage c If the charge is for a parking ticket or traffic violation i the incident must have occurred while the Cardholder was in possession of the vehicle and ii Merchant must support the charge with documentation from the appropriate civil authority including the license number of the rental vehicle date time and location of the violation statute violated and amount of the penalty d Ifa T amp E Express Service Transaction involves Dynamic Currency Conversion a Merchant must process delayed or amended charges at the same currency conversion rate as the original Dynamic Currency Conversion Transaction e The Merchant may deposit the Transaction Receipt without a Cardholder signature if the Merchant has the Cardholder signature on file and includes the words Signature on File on the signature line and i sends a copy to the Card
117. ed if the Cardholder has not a rented the vehicle by the end of the guarantee period or b properly cancelled the reservation as required in Section 3 u 12 f of this Operating Guide c Billing Information The Car Rental Company must obtain the Cardholder name Account Number and expiration date as displayed on the Visa Card d Specialized Vehicle Reservation Information i Ifa Cardholder reserves a Specialized Vehicle the Car Rental Company must inform the Cardholder that the reservation a Will be held until the scheduled pick up time unless cancelled b May be cancelled without penalty anytime up to 72 hours before the scheduled rental time c If the reservation is made within 72 hours of the scheduled rental time may be cancelled without penalty anytime up to 8 hours before the scheduled rental time ii The Car Rental Company must advise the Cardholder that a no show fee not to exceed 2 days rental may be billed if the Cardholder has not a rented the Specialized Vehicle by the end of the guarantee period or b properly cancelled the reservation as required in Section 3 u 12 f of this Operating Guide e Reservation Confirmation i For a reservation made with at least 72 hours notice the Car Rental Company must send the Cardholder a written confirmation containing all of the following information a Cardholder name Account Number and expiration date as displayed on the Visa Card b Name and
118. edit Transaction Receipt date b describes the merchandise returned services cancelled or adjustment made and c identifies the original Transaction t Returned Merchandise Cancellation and Adjustments 1 Merchant Responsibilities a A Merchant must provide a credit refund or price adjustment by delivering a Credit Transaction Receipt to the Member that received the related Transaction Receipt representing the original purchase The only exception is an Airline or other carrier if required by law or applicable tariff b Merchant may provide the following alternate forms of credit cash refund to the Cardholder for a Small Ticket Transaction i cash refund to the Cardholder for a No Signature Required Transaction iii Cash refund Credit Transaction Receipt or other appropriate form of credit to the recipient of a gift purchased as a Mail Phone Order Transaction instead of to the Cardholder or iv Cash refund or in store credit for a Visa Prepaid Card Transaction if the Cardholder states that the Visa Prepaid Card has been discarded c The refund or adjustment must not exceed the original Transaction amount d Merchant may limit its acceptance of returned merchandise or establish a policy to make price adjustments if the Merchant makes proper disclosure as specified in Section 3 s 2 of this Operating Guide and if in a Face to Face Environment delivers the purchased goods or services to the Cardholder at the t
119. egulations as an inducement for the Cardholder to use a means of payment other than a Visa Card iv Merchant may accept Visa Electron Cards If Merchant accepts Visa Electron Cards it must a accept all Visa Electron Cards properly presented for payment and b process all Transactions resulting from Visa Electron Cards as Visa Electron Program Transactions as specified in the Visa International Operating Regulations v If Merchant does not deal with the public for example a private club it complies with Section 3 d 1 b iv if it accepts Visa Cards and Visa Electron Cards from its members 2 Visa Affinity Cards A Merchant that wants to accept Visa Affinity Cards including an Affiliated merchant that is affiliated with an Affinity Partner must also accept all Visa Cards in the Merchant s category of acceptance Merchant must not use a Visa Affinity Card to debit any credit charge or asset account other than the Visa account maintained by the Issuer in connection with the Visa Affinity Card 3 Visa Mini Cards A Merchant that accepts a Visa Card and has a Magnetic Stripe Terminal must attempt to accept the Visa Mini Card if the Visa Mini Card is within the Merchant s category of Card acceptance Merchant must request the corresponding full sized Visa Card if the Merchant s Terminal is unable to read the Magnetic Stripe on the back of the Visa Mini Card 4 Uniform Services a Merchant must process Transactions with Merchant Ba
120. elated information as detailed in Table 3 c A Cardholder must expressly agree to a Dynamic Currency Conversion Transaction A Merchant is prohibited from using any customer service procedure that results in a Cardholder choosing a Dynamic Currency Conversion Transaction by default as specified in Section 3 u 9 c of this Operating Guide d If the Cardholder accepts the Dynamic Currency Conversion option the Merchant must 7 complete the Transaction in the defined manner for each Transaction environment as specified in Section 3 u 9 d of this Operating Guide and 2 include the required information on the Transaction Receipt as detailed in Section 3 u 9 d of this Operating Guide b T amp E Express Service Transactions i A Car Rental Merchant or Lodging Merchant that offers T amp E Express Services may establish an agreement with a Cardholder in advance of hotel checkout or car rental return that the currency conversion rate will be determined by the Merchant at a later time without further consulting the Cardholder The operating requirements specified in Table 4 apply ii Fora T amp E Express Service Transaction a Merchant must a send the Cardholder a copy of the Transaction Receipt through the postal service within three business days of completing the Transaction and b process any delayed or amended charges at the same currency conversion rate as the original Dynamic Currency Conversion Transaction c Restrict
121. en permission from Visa U S A A Merchant which uses an Agent or Merchant Servicer must include the foregoing provisions in its agreement or contract with such Agent or Merchant Servicer and must ensure that the Agent or Merchant Servicer complies with the substance of this section j Disclosure and Storage of Transaction Information 1 Except as specified in Section 3 j 2 Merchant and any Merchant agent must not disclose a Cardholder Account Number personal information or other Transaction Information to third parties other than to the Merchant Servicers Merchant Bank or Merchant Bank s agent s for the sole purpose of a assisting Merchant in completing the Transaction or b as specifically required by law 2 Merchant may only disclose Transaction Information to third parties approved by Visa for the sole purpose of a supporting a loyalty program or b providing fraud control services Procedures for approval of third parties are available from Visa U S A Risk Management upon request 3 A Merchant and any agent or Merchant Servicer engaged by a Merchant must not in the event of its failure including bankruptcy insolvency or other suspension of business operations sell transfer or disclose any materials that contain Cardholder Account Numbers personal information or Visa Transaction Information to third parties Merchant must and must cause its agents and Merchant Servicers to a return this information to Mercha
122. ent of the Treasury regulations the Electronic Funds Transfer Act the Telephone Consumer Protection Act the Gramm Leach Bliley Act the Foreign Corrupt Practices Act the Federal Trade Commission Act the Sarbanes Oxley Act and implementing federal regulations and Regulations B E P and Z of the Board of Governors of the Federal Reserve System Retail Merchant A Merchant that is not a Mail Phone Order Merchant a Recurring Services Merchant or a T amp E Merchant Retail Transaction A Transaction at a Retail Merchant Outlet Retrieval Request An Issuer s request for a Transaction Receipt which could include a paper copy or facsimile or an electronic version thereof Reversal A transaction used to negate or cancel Settlement of Transaction Receipts that should not have been processed for Settlement Sales Data A Discover term relating to the evidence of Discover Transactions including Cash Advances and Credit Transactions in electronic format that is captured prepared and transmitted for Settlement Sales Draft A paper record evidencing the purchase of goods or services from a Merchant by a Cardholder using a Visa Card or Visa Electron Card Sales Slip A Discover term relating to a form used by a Merchant to capture Discover Transaction information in transactions where a Point of Transaction Terminal is not used one copy of which is provided to the Cardholder and one copy of which is submitted to Processor for Settlement of the Discover
123. ents for payment This means that Merchant must permit the Cardholder to choose whether he or she pays for a transaction with that Visa Card or with some other means of payment accepted by Merchant Merchant may request or encourage a Cardholder to use a means of payment other than a Visa Card A Merchant that accepts all Visa Cards or a Limited Acceptance category of Visa Cards must accept any valid Visa Card issued by a non U S Issuer b If a Cardholder presents a Visa Card that is in the Merchant s category of acceptance and that bears a Mark representing another payment service i Merchant must honor the Cardholder s request if the Cardholder indicates that the transaction is to be processed as a Visa Transaction ii Merchant may process the Transaction as something other than a Visa Transaction despite an initial indication by the Cardholder that the Transaction is to be processed as a Visa Transaction but only if the Cardholder agrees that the Transaction may be processed as something other than a Visa Transaction Merchant may not mislead the Cardholder concerning what payment service or system will be used If Merchant provides any information on this topic that information must be accurate iii Merchant may offer a non monetary benefit to a Cardholder as an inducement for the Cardholder to use a means of payment other than a Visa Card Merchant may offer a monetary benefit in the form of a discount as provided in the Visa Operating R
124. equire the Cardholder to select a click to accept or other affirmative button to acknowledge the policy The terms and conditions of the purchase must be displayed a on the same screen view as the checkout screen used to present the total purchase amount or b within the sequence of Web pages the Cardholder accesses during the checkout process 5 Special Circumstances A Merchant may with Cardholder approval and if permitted by local law identify terms for special circumstances such as late delivery delivery charges The Merchant must print any special terms on the Transaction Receipt u Electronic Commerce 1 Authorization and Clearing Requirements a All Transactions V3 1111 Page 35 i An Electronic Commerce Transaction must be identified in both the Authorization Request and Clearing Record with the appropriate Electronic Commerce Transaction indicator values b Authentication Requests i A Merchant must not submit an Authorization Request for an Electronic Commerce Transaction that failed a 3 D Secure Authentication Request ii In an Authorization Request a Merchant must not transmit Authentication Data specific to one Transaction with another Transaction except in the following cases a Two Transactions are related due to delayed delivery or b All items of an order cannot be shipped at the same time iii The original Authentication Data may be used if a subsequent Authorization Request is initiated as a
125. er 2 Recurring Payment Plans When accepting Discover Cards for Recurring Payment Plans Merchant must comply with the following requirements a Merchant must comply with the Authorization requirements in Section 5 g as supplemented by this Section with respect to each amount billed to a Discover Card Account pursuant to a Recurring Payment Plan If Merchant fails to comply with any of the requirements in this Section with respect to a Recurring Payment Plan or if a Cardholder initiates a Dispute at any time with respect to i a Discover Transaction involving a Recurring Payment Plan or ii the goods or services that Merchant agreed to provide pursuant to a Recurring Payment Plan a Dispute may be initiated against Merchant of any Recurring Payment Card Sale in addition to any payments that were previously submitted to and settled by Processor b If Merchant engages in Recurring Transactions Merchant must obtain a separate current Authorization Response for each Recurring Transaction at the time each Recurring Transaction becomes due If the Merchant Agreement has been terminated Merchant may not submit Authorization Requests for Recurring Transactions that are due after the termination date of the Merchant Agreement If the Discover Card Account of the Cardholder who agreed to the Recurring Payment Plan is terminated the Issuer will respond with a negative Authorization Response to any subsequent Authorization Requests including Authoriz
126. er Transaction information into the Point of Transaction Terminal except for Prepaid Cards that are not embossed with Discover Card features in which case the Merchant shall not manually enter Discover Transaction information on the Point of Transaction Terminal prior to submitting the Authorization Request If Merchant manually enters Discover Transaction information for a Prepaid Card with unembossed Discover Card features into a Point of Transaction Terminal the Discover Transaction may be subject to Dispute and Merchant may lose such Dispute In addition Merchant must imprint the Discover Card on the Transaction Receipt except for Prepaid Cards that are not embossed with Discover Card features and cannot be imprinted If Merchant s Point of Transaction Terminal is unable to receive an electronic Authorization Response Merchant should call Processor to submit a voice Authorization Request 6 Voice Authorization Procedures If Merchant s Point of Transaction Terminal is unable to submit an Authorization Request or unable to receive an Authorization Response or if Merchant does not use a Point of Transaction Terminal to conduct a Discover Transaction Merchant must call Processor to submit a voice Authorization Request When Merchant calls to communicate a voice Authorization Request Merchant must provide the following information to Processor in this order i Merchant s complete MID ii the Discover Account Number iii the CID iv the ex
127. erchant Outlets Accepting Tips a Except as specified otherwise in Section 3 I 9 b an Authorization obtained by a Merchant for a Transaction amount that is equal to the Authorization amount plus or minus 20 percent is valid if the Transaction originates at a Merchant Outlet assigned one of the following Merchant Category Codes Restaurants 5812 5814 i Taxicabs and Limousines 4121 iii Bars and Taverns 5813 v Beauty and Barber Shops 7230 v Health and Beauty Spas 7298 b An Authorization obtained by a Merchant that accepts Partial Authorizations is valid only for the Transaction amount that is equal to the amount approved in the Partial Authorization Response 10 Partial Authorizations a Except as otherwise specified in this Operating Guide a Merchant accepting Partial Authorizations must support Partial Authorization for all Visa Card types and must i Include the Partial Authorization indicator in the Authorization Request message as specified in the appropriate V I P System User s Manual ii Submit an Authorization reversal if the Cardholder elects not to complete the purchase iii Submit a Clearing Transaction for no more than the amount approved in the Partial Authorization Response 11 Preauthorized Transaction Authorization Requests a Except as specified in Section 3 1 12 of this Operating Guide a Preauthorized Transaction that receives a Decline Response may be resubmitted for Authorization up to fo
128. erchant does not have an electronic terminal or is unable to obtain Address Verification using its electronic terminal Merchant should call Processor and submit the Address Verification request to Processor When calling to obtain Address Verification by telephone Merchant must provide the following information a complete MID of the Merchant conducting the Discover Transaction b Discover Account Number c numeric portion of the Cardholder s billing address 5 digits and a ZIP code of the Cardholder s billing address 5 or 9 digits b The Address Verification Service is made available to Merchant to reduce the risk of Disputes alleging fraud associated with Card Absent Environment Discover Transactions Completing an Address Verification is not a guarantee against possible Dispute only a tool by which to reduce the risk or occurrence of fraudulent activity in Card Absent Environment Discover Transactions Merchant will not be provided with any information about a Cardholder or Discover Card Account in response to a request for Address Verification but will only verify the Cardholder information provided V3 1111 Page 61 c The Discover Card must always be presented for a transaction when the Cardholder is physically present for a Discover Transaction or where the Cardholder is present at a retail location to take delivery of merchandise ordered in a Card Absent Environment Discover Transaction In each case the Discover Card should
129. es a Merchant must notify Processor as soon as reasonably practicable and in no event more than 24 hours after becoming aware of i any suspected or actual data security breach in any of Merchant s or any Merchant agent s systems or databases used to conduct or in any way process Discover Transactions or to store Cardholder information including websites or electronic links used to conduct Discover Transactions and ii any noncompliance by Merchant or any of Merchant s agents with the Security Requirements Such breaches shall include third party incursions that could in any way result in access to Discover Transaction information Discover Card Account information or Cardholder information Merchant shall make the notification to Processor initially by telephone by calling Processor at 800 654 9256 followed by written notification using a standard form and format specified by Processor The foregoing obligations are in addition to any data security breach notification obligations that may be applicable to Merchant or Merchant agents under Requirements of Law Merchant and any of Merchant s agents must i perform or cause to be performed an independent investigation including a forensics analysis of any suspected or actual data security breach ii perform or cause to be performed any remedial actions recommended by any such independent investigation and iii cooperate with Discover and Processor in the investigation and resolution of any susp
130. exact street address of the Merchant Outlet c Confirmation code d Rate e Cardholder obligations f Cancellation and any other service details ii For reservations made with less than 72 hours notice the Car Rental Company must mail a confirmation only on Cardholder request f Cancellation Period A Car Rental Company in the U S Region must not require more than 72 hours reservation cancellation notification before the scheduled rental date of a Specialized Vehicle If the Cardholder makes the reservation within 72 hours of the scheduled rental date the cancellation deadline must be 12 hours before the scheduled rental time on the scheduled pick up date g Cancellation Confirmation i The Car Rental Company must provide a cancellation code and advise the Cardholder to retain it in case of dispute ii f requested the Car Rental Company must provide the Cardholder with a written confirmation that contains the following information a Cardholder name Account Number and Card expiration date as displayed on the Visa Card b Cancellation code c Cancellation details h Unclaimed Vehicles i The Car Rental Company must hold the reserved vehicle according to the reservation if the Cardholder has not claimed or properly canceled the reservation by the specified time ii The Car Rental Company may then prepare a Transaction Receipt with the following information a No Show Transaction fee plus tax as applic
131. fied by Visa Mark A Mark used in conjunction with the 3 D Secure Authenticated Payment Program One of the Visa owned Marks V I P System VisaNet Integrated Payment System The VisaNet Authorization Clearing and Settlement services provided to Members The V I P System consists of both BASE and the Single Message System Virtual Account A Visa account provided with no corresponding plastic and intended primarily for Electronic Commerce Transactions Virtual Account Holder An individual or commercial entity to whom a Virtual Account is provided or who is authorized to use a Virtual Account Visa Cash Back Service A service whereby cash is obtained from a qualified Merchant through the use of a Visa Check Card II Card and processed in accordance with the Visa Operating Regulations The amount of cash back is always less than the total Transaction amount Visa Consumer Card A Visa Card other than a Commercial Visa Product Card V3 1111 Page 19 Visa Consumer Credit Card A Visa Consumer Card other than Visa Debit Card that includes the following a Visa Traditional b Visa Signature and c Visa Signature Preferred Visa Credit and Business Category A Card category that consists of the following a Visa Consumer Card other than a Visa Debit Card issued by a U S Issuer b Commercial Visa Product and c Visa Card issued by a non U S Issuer Visa Debit Card A Visa Consumer Card that accesses a deposit investment or othe
132. formation may be stored and then only to the extent permitted by the Standards If an account compromise occurs the following will apply a The Merchant must notify Merchant Bank immediately b Merchant Bank shall provide MasterCard with complete information about the account compromise c Refer to the Security Rules and Procedures manual found at http www mastercard com us wce PDF Security 20Rules 20 20Merchant pdf for additional requirements applicable in the event of account data compromise 4 Account Information Must Not Be Recorded on a Mailer Merchant must not ask a Cardholder to record a Card account number or other account information on the exterior of any order form or other similar device designed to be mailed 5 Merchant Identification A Merchant must prominently and unequivocally inform the Cardholder of the identity of the Merchant at all points of interaction so that the Cardholder readily can distinguish the Merchant from any other party such as a supplier of goods or services to the Merchant 6 Data Storage Entity DSE Identification and Registration Requirements The Merchant must inform Bank promptly of the identity of any DSE that the Merchant intends to afford access to Card account Cardholder or Transaction information ADSE must comply with the MasterCard Site Data Protection SDP Program in accordance with the implementation schedule set forth in V3 1111 Page 53 section 10 5 5 of the Security
133. g Guide If an Issuer submits a Chargeback Processor will send the Merchant a Chargeback notification which may also include a request for Transaction Documentation Due to the short time requirements imposed by Discover it is extremely important that a Merchant respond to a Chargeback notification and Transaction Documentation request within the time frame set forth in the notification The Merchant must not process a Credit Transaction once a Chargeback is received Discover will credit the Cardholder s Discover Card Account unless the Chargeback is reversed The Processor may request a Representment of the Discover Transaction on behalf of Merchant and at the request of Merchant if the information provided by Merchant is both timely V3 1111 Page 54 and in Processor s sole discretion sufficient to warrant a Representment and or reversal of the Chargeback Representment or reversal is not a guarantee that the Chargeback has been resolved in Merchant s favor If Discover rejects the Representment request and Merchant feels strongly that the Chargeback is invalid Processor may at its discretion and on behalf of Merchant and at the request of Merchant submit the matter for Dispute arbitration before Discover Discover charges fees for Representment requests and an arbitration fee as published in Discover s fee schedule Discover s Operating Rules prohibits Processor and or Merchant from contacting the Cardholder directly regarding any Dispu
134. g No Signature Required Discover Transactions Transaction Documentation must be signed by the Discover Card presenter in the presence of Merchant s authorized representative or employee at the time of the Discover Transaction The signature on the Transaction Documentation must reasonably match the signature appearing on the signature panel of the Discover Card and the Cardholder s name as displayed on the front of the Discover Card except where the valid Discover Card does not bear a Cardholder name on the front of the Discover Card 2 Merchant must verify that there is a signature on the signature panel on the back of the Discover Card and verify that the name on the back of the Discover Card is reasonably similar to the name displayed on the front of the Discover Card 3 Ifa Discover Card bearing an unsigned signature panel is presented to a Merchant Merchant must request two pieces of identification one of which must be a government issued picture identification When Merchant has confirmed that the person presenting the Discover Card is the Cardholder Merchant must require the Cardholder to sign the back of the Discover Card If Merchant is unable to positively identify the Discover Card presenter as the Cardholder or if Merchant has reason to suspect fraud Merchant should call Processor to request a Code 10 Authorization I Submission of Sales Data 1 Merchant shall transmit Sales Data to Processor each day Except for Cardholder dep
135. g disclaimer must appear in close proximity to the mark on the same page and in an equal size and type of print MasterCard International Incorporated is not affiliated in any way with Merchant and has not endorsed or sponsored this offer c Merchant further agrees to submit its first direct mail solicitation s prior to mailing to the MasterCard Law Department to be reviewed only for compliance with MasterCard s trademark rules and shall furthermore not distribute in any manner such solicitations until Merchant shall have obtained MasterCard s written approval of the manner in which it uses MasterCard mark and logo on such solicitations Merchant shall likewise upon request submit to the Corporation any amended solicitations prior to mailing 6 Any use of a MasterCard Mark by a Merchant in acceptance advertising acceptance decals or signs must be in accordance with the MasterCard Standards including MasterCard s reproduction usage and artwork standards as may be in effect from time to time Chapter 4 Section 2 of the MasterCard Merchant Rules Manual contains usage guidelines for the MasterCard Marks 7 The Merchant s use or display of the MasterCard Marks will terminate upon the termination of the Merchant Agreement or upon notification by MasterCard to discontinue such use or display 8 The use or display of the MasterCard Marks does not give a Merchant any ownership or interest in the Marks V3 1111 Page 51 b Respons
136. g services at no charge comparable accommodations for one night at another establishment i if requested a 3 minute telephone call and message forwarding to the alternate establishment s location and iii transportation to the alternate establishment s location 12 Visa Reservation Service for Car Rentals a General Requirements i This section governs Transactions involving a Car Rental Company in the Visa U S A Region that accepts Visa Cards to guarantee Peak Time reservations and reservations for Specialized Vehicles ii A participating Car Rental Company must accept all Visa Cards in its category of acceptance as specified in Section 3 d 1 a for reservations under the Visa Reservation Service b Peak Time Reservation Information i Ifa Cardholder reserves a vehicle during Peak Time the Car Rental Company must inform the Cardholder that the reservation a is within a Peak Time period and explain the meaning of Peak Time and b may be cancelled without penalty anytime up to 8 hours before the scheduled rental time ii f a Cardholder is traveling to a car rental location by Airline and the flight is cancelled or the airport is closed the Cardholder may cancel the Peak Time reservation without penalty up to one hour before the scheduled rental time V3 1111 Page 44 iii The Car Rental Company must advise the Cardholder that a no show fee not to exceed one day s rental plus the applicable tax may be bill
137. ging Cruise Line Car Rental Merchant Merchant Company Total obligation V V V Reserved accommodation or car rental rate and the Transaction amount V V V Exact Lodging Merchant or Car Rental Company name and location V V Cruise Line Merchant name address and point of embarkation V Accommodation will be held for the number of nights paid for V V Vehicle will be held for the number of days paid for V Merchant s cancellation policy V V V d Reservation Confirmation i The Merchant must provide a a confirmation code advising the Cardholder to retain it and b the advance deposit amount cancellation policy requirements and for lodging accommodations the actual date and time that the cancellation privileges expire ii The Merchant must advise the Cardholder that it will a hold the accommodations according to the reservation and b provide written confirmation of a Cardholder reservation change if requested iii The Lodging or Cruise Line Merchant must also advise the Cardholder that it will retain the entire T amp E Advance Deposit Transaction amount or the amount specified in the Merchant s stated policy if the Cardholder has not a checked in by check out time for a Lodging Merchant the day following the specified last night of lodging used to determine the T amp E Advance Deposit Transaction amount b checked in by the departure time for a Cruise Line and c cancelled the reservation within the specifie
138. gnature line b Advance Deposit Policy Merchant may require a Cardholder to pay a deposit at the time the Cardholder makes a reservation if Merchant complies with the requirements of this Section Section 5 p 5 b The amount of the deposit may not exceed the cost of seven 7 nights lodging plus applicable taxes and the deposit must be applied to the Cardholder s entire bill i If Merchant takes advance deposits for reservations Merchant must comply with the following requirements i hold reserved accommodations until check out time following the last day covered by the advance deposit ii specify a reservation cancellation time frame including the date and time when cancellation privileges expire iii fully reimburse an advance deposit when the Cardholder cancels a reservation within the specified time frame and iv provide a written disclosure informing the Cardholder of his or her rights and obligations and that failure to cancel a reservation within the specified time frame may result in forfeiture of all or part of an advance deposit Merchant may not charge a no show penalty in addition to a forfeited advance deposit ii For each advance deposit taken by Merchant Merchant must prepare Sales Data in the amount of the advance deposit and transmit such Sales Data immediately after Merchant takes the reservation for the advance deposit Sales Data for advance deposits must contain the following information i Cardholder s
139. h Advance c A Cash Advance Merchant must verify that there is a signature on the Discover Card as described in Section 5 k 2 and must comply with the requirements of Section 5 k 3 if the Discover Card is not signed 3 Authorization for Cash Advances Cash Advance Merchants must obtain an Authorization Response for each Cash Advance transaction as described in Section 5 q Each Authorization Request submitted must indicate that the Discover Transaction is a Cash Advance All Cash Advance transactions are final once the cash is dispensed to the Cardholder Under no circumstances are returns of or Credit Transactions for Cash Advances permitted If a Cash Advance Merchant issues a credit to a Cardholder for a return of a Cash Advance Merchant will not be reimbursed for the amount of the credit or the amount of any such credit will be subject to Dispute Cash Advances transactions that do not comply with this Operating Guide are subject to additional fees and Dispute 4 Cash Advance Merchant Creation of Transaction Documentation Cash Advance Merchant must prepare Transaction Documentation for each Cash Advance transaction and Cash Advance Merchant must provide a copy of the Transaction Documentation to the Cardholder at the time of completion of the Cash Advance transaction in each case in accordance with this Section 5 q 4 The form and format of the Transaction Documentation used by Cash Advance Merchants must be acceptable to Processor
140. h applicable laws and regulations and in any event within 30 calendar days of the Transaction Date j Account Cardholder Transaction and Merchant Information 1 Sale or Exchange of Account and Cardholder Information Prohibited A Merchant must not sell purchase provide exchange or in any manner disclose MasterCard Account Number Transaction or personal information of or about a Cardholder to anyone other than Bank to MasterCard or in response to a valid government request This prohibition applies to Card imprints TIDs carbon copies mailing lists tapes database files and all other media created or obtained as a result of a MasterCard Transaction 2 Fraudulent or Unauthorized Use of Account Information Prohibited A Merchant must not request or use MasterCard Account Number or personal information for any purpose that it knows or should have known to be fraudulent or in violation of MasterCard Standards or for any purpose that the Cardholder did not authorize 3 Account Cardholder and Transaction Data Must Be Kept Secure Merchants and DSEs must keep all systems and media containing MasterCard account Cardholder or Transaction information whether physical or electronic in a secure manner so as to prevent access by or disclosure to any unauthorized party Merchants and DSEs must destroy all media not necessary to retain in a manner that will render the data unreadable Only MasterCard account Cardholder and Transaction in
141. haser name Authorization Approval Code Transaction type purchase or credit Description of merchandise services Return refund policy if restricted 1 The Merchant name must not be the name of the network provider or other entity unless the transaction represents membership service charges or merchandise services provided by the network provider itself Table 3 Data Requirements ATM Transaction Receipt TRANSACTION DATA REQUIREMENTS Except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed ATM Acquirer name and or name of affiliated local or regional network ATM street location or Location Code ATM city and state Transaction amount Access fee if any imposed by the ATM Acquirer as specified in Volume General Rules Section 5 5 A 2 d Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Transaction type Cash Disbursement Type of account accessed V3 1111 Page 75 Table 4 Data Requirements Limited Amount Terminal Transaction Receipt Except for Magnetic Stripe Telephones TRANSACTION DATA REQUIREMENTS Account Number Effective through June 30 2006 except for the final four digits the Account Number on the Cardholder s copy of
142. holder at the address shown on the rental contract or folio 6 Other Transactions For the indicated Transaction type a Merchant must write the following letters or words on the signature line of the Transaction Receipt TRANSACTION TYPE SIGNATURE LINE PRINTING Telephone Order TO Mail Order MO No Show No Show T amp E Advance Deposit Advance Deposit Priority Check out Priority Check Out Recurring Recurring Transaction Advance Payment Service Advance Payment q Transaction Receipt Delivery to Cardholder 1 Transaction Receipts V3 1111 Page 33 a A Merchant must provide a completed copy of the Transaction Receipt to the Cardholder as follows i Atthe time that the purchased goods are delivered or services are performed except for any of the following a A Transaction under 25 completed at a Point of Transaction Terminal with Contactless Payment capability b A Small Ticket Transaction c No Signature Required Transaction d A T amp E Express Service Transaction involving Dynamic Currency Conversion ii Atthe time of billing for a Deferred Payment Transaction iii Upon Cardholder Request for a Small Ticket Transaction or a No Signature Required Transaction iv At the time of the Transaction for a Transaction completed at a Point of Transaction Terminal b The Merchant must provide a completed copy of a Credit Transaction Receipt at the time of the Transaction
143. horized Transaction after the initial request or to complete a preauthorized Transaction unless the Transaction would exceed the preauthorized amount Merchant will instruct its employees not to ask Cardholders to disclose their PIN Merchant is prohibited from disclosing or maintaining any record of Cardholder PINS b Merchant must obtain Authorization for each Online Debit Card Transaction before Merchant completes the Transaction There is no voice Authorization or imprinter procedure for Online Debit Card Transactions Merchant may not complete a transaction that has not been Authorized If Merchant cannot obtain an Authorization Merchant should request another V3 1111 Page 7 form of payment from the customer Merchant may not manually enter the Account Number The Account Number must be read electronically from the Magnetic Stripe If the Magnetic Strip is unreadable Merchant should request another form of payment from the customer c Merchant must issue a Transaction Receipt to the Cardholder upon the successful completion of a Transaction The Transaction Receipt shall contain the following information i amount of the Transaction ii the Transaction date iii the type of Transaction iv the type of account v only the last four digits of the Account Number must be printed on the Transaction Receipt vi the location of the Terminal at which the Transaction was initiated vii Merchant s name and viii a trace number
144. i Merchant name most recognizable to the Cardholder such as a Merchant doing business as name DBA b Merchant universal resource locator URL c Merchant name used in the VisaNet Clearing Record ii Customer service contact including telephone number Ifa Merchant delivers goods or services internationally both local and internationally accessible telephone numbers must be included iii Terms and conditions of sale if restricted iv Exact date free trial period ends if offered v Cancellation policies b Internet Payment Service Providers i Fora Transaction Receipt completed by an Internet Payment Services Provider if the Cardholder accesses a Sponsored Merchant s Web Site and is then linked to the Internet Payment Service Provider Web Site for payment the Internet Payment Service Provider Name must appear on the Transaction Receipt in conjunction with the Sponsored Merchant s name V3 1111 Page 36 ii The Internet Payment Service Provider name may appear alone on the Transaction Receipt if a the Cardholder accesses the Internet Payment Service Provider Web Site directly and b the Internet Payment Service Provider name is visible to the Cardholder during the selection order and payment processing services iii f the Internet Payment Service Provider name appears alone on the Transaction Receipt as specified in Section 3 t 3 b ii Visa may require that the Sponsored Merchant name be included on th
145. iate VisaNet User s Manual V3 1111 Page 38 iv The Transaction must occur a in a Face to Face environment or b At a Self Service Terminal or c At an Automated Dispensing Machine v The Transaction must not be processed as a Small Ticket Transaction if Dynamic Currency Conversion is performed vi Interchange Reimbursement Fee Any applicable Interchange Reimbursement Fee may apply to a Small Ticket Transaction A Small Ticket Transaction must satisfy the requirements specified in Section 3 u 6 to to qualify for CPS Small Ticket Interchange Reimbursement Fee 6 CPS Small Ticket a CPS Small Ticket is a payment service that permits certain Merchant Outlets to Process Visa Consumer Card Transactions as specified in this section and i Qualify for the CPS Small Ticket Interchange Reimbursement Fee b The following Merchant Category Codes may qualify for the CPS Small Ticket program i Local Commuter Passenger Transportation 4111 ii Taxicabs and Limousines 4121 iii Bus Lines 4131 iv Toll and Bridge Fees 4784 v Eating Places and Restaurants 5812 vi Fast Food Restaurants 5814 vii News Dealers Newsstands 5994 viii Laundries Family Commercial 7211 ix Dry Cleaners 7216 x Quick Copy Reproduction and Blueprinting Services 7338 xi Parking Lots and Garages 7523 xii Car Washes 7542 xiii Motion Picture Theaters 7832 xiv Video Tape Rental Stores 7841
146. ibility for Transactions Merchant is responsible for ensuring that the Cardholder understands that the Merchant is responsible for the transaction including the goods or services that are the subject of the transaction and for related customer service dispute resolution and performance of the terms and conditions of the transaction A Merchant Web site must 1 Prominently display the name of the Merchant 2 Prominently identify the name of the Merchant as displayed on the Web site as both the Merchant and as the name that will appear on the Cardholder statement and 3 Display Merchant name information as prominently as any other information depicted on the Web site other than images of the products or services being offered for sale c Cardholder Identification A Merchant must not refuse to complete a MasterCard Card Transaction solely because a Cardholder who has complied with the conditions for presentment of a Card at the POI refuses to provide additional identification information except as specifically permitted or required by the Standards A Merchant may require additional identification from the Cardholder if the information is required to complete the transaction such as for shipping purposes A Merchant in a country or region that supports use of the MasterCard Address Verification Service AVS may require the Cardholder s ZIP or postal code to complete a cardholder activated terminal CAT Transaction or the Cardholder s addre
147. ime of the Transaction 2 Refund Policy Disclosure a The following words or similar wording must be legibly printed on all copies of the Transaction Receipt or invoice in letters approximately 0 25 inches high near the Cardholder signature area TRANSACTION RECEIPT WORDING FOR THE FOLLOWING TYPES OF REFUND POLICY No Refund Merchant that does not e Accept merchandise in return or exchange e Issue a refund to a Cardholder Exchange Only Merchant that only accepts merchandise in immediate exchange for similar merchandise of price equal to the original Transaction amount In Store Credit Only Merchant that only accepts merchandise in return and delivers an in store credit that e Equals the value of the returned merchandise e Must be used at the Merchant s place of business Note Absence of the above wording does not necessarily mean that proper disclosure has not been provided b Proper disclosure must not include a statement that waives a Cardholder s right to dispute the Transaction with the Issuer 3 Refund Policy Disclosure for a Mail Order Merchant A mail order Merchant must include disclosure of its refund policy on the Order Form invoice or contract as specified in Section 3 s 2 of this Operating Guide 4 Refund Policy Disclosure for an Electronic Commerce Merchant An Electronic Commerce Merchant Web Site must communicate its refund policy to the Cardholder during the order process and r
148. in Merchant s ordinary course of business was subject to any claim of illegality cancellation avoidance or offset for any reason including without limitation negligence fraud or dishonesty on the part of Merchant or Merchant s Agents xiv A Cardholder dispute was filed regarding the Transaction b Bank will charge back to Merchant and Merchant will pay Bank the amount of each Transaction which Merchant or a Affiliated merchant submits to Bank for processing that is subject to Chargeback to Bank for any reason under the Operating Rules or to the extent Merchant Bank receives claims regarding the Transactions from Cardholders under other provisions of law c Merchant may not enter into Interchange any Transaction that was previously charged back to the Merchant Bank and returned to Merchant irrespective of Cardholder approval d If Bank determines that Merchant has or is reasonably likely to have a monthly ratio of Chargebacks to Transactions exceeding one percent 1 Bank may but is not obligated to notify Merchant of new procedures it should adopt and additional Processing Fees imposed for processing Chargebacks and or may terminate this Agreement at Merchant Bank s discretion without advance notice Merchant must immediately reimburse Bank for the amount of any fines or fees imposed by a Card Association or Bank relating to Chargebacks to Merchant e The Card Associations have established guidelines merchant monitoring p
149. inal iii Merchant suspects that the Discover Card presented has been stolen altered or counterfeited or that the nature or circumstances of the Discover Transaction are suspicious or unusual e Indications that a Discover Card is Counterfeit Altered include i Security features described in Section 5 r 1 are not present Examine the Discover Card for signs of alteration Check the security features on the Discover Card to ensure that they are valid including without limitation checking Discover Cards to determine if the stylized D is present if applicable ii Signs of erasure or alteration on the signature panel iii Disparity between the Discover Account Numbers embossed on the front of the Discover Card and those on the printed Transaction Receipt iv Discover Account Numbers have been clearly altered re embossed or have other marked irregularities such as smudged poorly aligned crooked or improperly spaced numbers v Warped or misshaped Discover Card that would reasonably be expected to appear as a standard plastic rectangle Note The Discover 2GO Card has an irregular outline f Arrests for Fraudulent Discover Card Usage Some Issuers may request Merchant to cause the arrest of a Discover Card presenter who is suspected of the fraudulent use of a Discover Card If Merchant elects to comply with such a request Merchant must use reasonable lawful means and must have the arrest made by local law enfor
150. including corporate legal name or address iv closing or liquidating business entirely or any locations v change in processing method i e Transaction Slips to Point of Transaction Terminal vi voluntary or involuntary party in a bankruptcy case vii entry into a loan or other agreement with a third party that seeks to affect the Merchant Agreement viii change to the entity that is a party to the Merchant Agreement or entities listed in Processor s records including by merger or acquisition and ix change to or from a business that conducts exclusively retail sales to one that accepts Discover Transactions by mail telephone order or Internet transactions Processor has the right to terminate Discover Card Acceptance by Merchant and Merchant s sublicense to use the Discover Program Marks if Merchant fails to notify Processor of any change to the information in its Merchant Profile or of any of the events mentioned in this Section In addition Discover Transactions by Merchant relating to a new business activity of which Processor has not been notified may be rejected or subject to Dispute b Merchant acknowledges that Processor will report Merchant fraud to Discover and termination of Merchant for actual or suspected Merchant fraud will result in the placement of Merchant in the Consortium Merchant Negative File Merchant fraud includes i business owner s and or officer s being criminally convicted of fraud ii excessive acceptance of
151. ing is true i A Transaction is a partial payment of a single purchase regardless of the Floor Limit ii A Cardholder requests a Cash Disbursement regardless of the Transaction amount iii A Merchant is suspicious of a proposed Transaction iv A Transaction exceeds the Floor Limit v The Transaction occurs in a Card Absent Environment vi Merchant accepts a Card for payment on an existing obligation that has not been deemed uncollectible by the Merchant providing the associated goods or services vii A Cardholder neglects to bring his her Card viii A Card signature panel is blank ix ACardholder presents an Expired Card If the Cardholder presents an Expired Card at a Point of Transaction Terminal that is not capable of capturing the Card expiration date Merchant must telephone Merchant Bank x A Cardholder presents a Visa Electron Card xi A Chip or Chip Reading Device is inoperative at a Chip enabled Merchant xii A Transaction is not a Mail Phone Order Transaction and involves a handwritten Sales Draft that does not contain the imprint of the Merchant plate or the Card When requesting Authorization in these circumstances Merchant must advise Merchant Bank of the specific reason for the Authorization Request b Merchant must comply with all additional authorization requirements and procedures for Transactions at Magnetic Stripe Terminals as specified in the appropriate VisaNet User s Manual 3 Visa Ele
152. ions A Merchant must not V3 1111 Page 40 i use any contractual language or procedures that result in the Cardholder choosing Dynamic Currency Conversion Transaction by default ii convert a Transaction amount in a local currency into an amount in a Cardholder s billing currency after the Transaction has been completed but not yet entered into Interchange or iii Perform Dynamic Currency Conversion on any of the following Transaction types a Contactless Payment Transactions b No Signature Required Transactions c Small Ticket Transactions d Operating Requirements For a Dynamic Currency Conversion Transaction a Merchant must comply with operating requirements specific to each Transaction environment as specified in i Table 2 Face to Face Transactions ii Table 3 Mail Phone Order or Electronic Commerce Transactions iii Table 4 T amp E Express Service Transactions Table 2 Dynamic Currency Conversion Face to Face Transactions TRANSACTION ENVIRONMENT OPERATING REQUIREMENTS Face to Face Transaction Receipt In addition to the Transaction Receipt requirements specified in Electronic and Manual Transaction Receipts Exhibit 1 to this Operating Guide a Transaction Receipt for a Face to Face Dynamic Currency Conversion Transaction must include the following information e Price of the goods or services in the Merchant s local currency accompanied by the currency symbol next to the amount e Total price in
153. iries about Issuer information and address verification services Merchant Outlet The Merchant location at which a face to face Transaction Mail Phone Order Transaction or Electronic Commerce Transaction is completed For an Aggregated Transaction the aggregated purchases must be from a single merchant brand of the direct seller to the Cardholder Merchant Servicer A third party agent that a is engaged by a Merchant b is not a Member of Visa U S A c is not directly connected to VisaNet d is party to the Authorization and or Clearing message and e has access to Cardholder data or processes stores or transmits Transaction data Mobile Commerce Device A device used to conduct Discover Transactions whereby Track Data is transmitted wirelessly by the Cardholder to the Merchant to effect Authorization and billing of the Discover Transaction to the Discover Card Account designated by the Cardholder Non Secure Transaction An Electronic Commerce Transaction that has no data protection Non Service Terminal A Point of Transaction Terminal other than a CAT that is not attended by a representative of the Merchant at which the Merchant is required to obtain a Cardholder signature for each Transaction No Show Transaction A Transaction resulting from a Cardholder s alleged failure to cancel or use the reservation completed by a Lodging Merchant participating in the Visa Reservation Service or Car Rental Company participating in the Visa
154. iscover NOVUS Acceptance Mark on the Discover Card d Valid Prepaid Cards not embossed with security features must conform to the requirements below Merchant will lose a Dispute of a Discover Transaction involving an unembossed Prepaid Card if the Merchant did not use the electronic Authorization procedures described in Section 5 g to obtain an Authorization Response i Electronic Use Only must be printed on the front of the Discover Card ii CID must be printed in a separate box to the right of the signature panel on the back of the Discover Card iii Stylized D is not present iv Discover Account Number is printed on the Discover Card v Cardholder Name may or may not be printed on the Discover Card vi Valid expiration dates may or may not be printed on the Discover Card vii Discover Hologram appears on the front of the Discover Card viii Holographic Magnetic Stripe will appear on newly issued Discover Cards e Certain Discover Cards accepted on the Discover will bear an Other Acceptance Mark Discover Cards bearing the same Other Acceptance Mark will have security characteristics and distinctive features described below to assist Merchants in identifying valid Discover Cards i All Discover Cards bearing the China UnionPay Mark include the following common characteristics and distinctive features Text on Discover Cards bearing the China UnionPay Mark may not be printed in English a A 16 digit Disc
155. iscover Transactions conducted prior to the termination date and for compliance with the Dispute Rules with respect to such Disputes g Authorizations 1 Processor has established a Floor Limit of US 0 00 for all Discover Transactions meaning that Processor requires Merchant to submit an Authorization Request and obtain an Authorization Response for all Discover Transactions Unless an alternative Floor Limit has been established by Processor Merchant must obtain a positive Authorization Response and corresponding Authorization Approval Code before completing each Discover Transaction A positive Authorization Response will remain valid for ninety 90 calendar days from the date the Issuer provides the Authorization Response If a positive Authorization Response is granted the Authorization Approval Code must be displayed on the printed Transaction Receipt or noted in the appropriate location on the face of the Sales Slip Even if a positive Authorization Response is granted for a Discover Transaction it is not a guarantee of payment An Authorization Approval Code only indicates the availability of credit on the Discover Card Account at the time Authorization is requested Merchant may pay higher fees if Merchant completes a Discover Transaction without receiving a positive Authorization Response if Merchant submits Sales Data to us regarding Discover Transactions for which Merchant did not receive a positive Authorization Response or if the Authoriz
156. isguised or suppressed Merchant name Location Code or city and state Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Table 6 Data Requirements Self Service Terminal Transaction Receipt TRANSACTION DATA REQUIREMENTS Account Number Except for the final four digits the Account Number on the Cardholder s copy of the Transaction Receipt must be disguised or suppressed Merchant name Location Code or city and state Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt V3 1111 Page 76 Table 7 through Table 9 specify the requirements for Manual Transaction Receipts Table 7 Data Requirements Manual Transaction Receipt TRANSACTION DATA REQUIREMENTS Imprint Imprint of Merchant or Member name and location Location Code Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Legend identifying its purpose i e Transaction Receipt or sales slip Legend identifying the party to whom i
157. ispute by a Cardholder with respect to delivery of goods or services ordered over the Internet the Discover Transaction is subject to Chargeback if Merchant cannot document that delivery of the goods and or services ordered over the Internet occurred as directed by the Cardholder or third party designated by the Cardholder or if the Authorization requirements were not followed f Merchant must comply with the Security Requirements set forth in Section 5 s g Any Discover Transaction conducted over the Internet that fails to comply with the requirements of this Operating Guide may be assessed higher fees may be subject to Dispute and may result in your loss of a Dispute of the Discover Transaction In addition Processor may terminate your rights of Discover Card Acceptance if Merchant fails to comply with the terms of this Section 5 0 1 V3 1111 Page 60 2 Telecommunication Discover Transactions are defined as individual local or long distance telephone calls for which the telephone service provider is paid directly Pre paid telephone service cards are not considered telecommunication Discover Transactions but instead are considered Card Present Environment Discover Transactions All telecommunications Discover Transactions are considered Card Absent Environment Discover Transactions when the Discover Card is not swiped through a Point of Transaction Terminal integrated with the telephone Telecommunication Discover Transactions may onl
158. ith multiple Merchant Outlets must deposit Transaction Receipts related to Visa Cards as follows i Transaction Receipts within 20 calendar days of the Transaction Date ii Credit Transaction Receipts within 9 calendar days of the Transaction Date if accumulated at a central office or facility d Section 3 q 2 c applies to the following Merchant types i Transaction companies subject to federal or foreign regulations ii Oil companies iii Car Rental Companies iv Hotels motels and restaurant chains v Other Merchant categories specified by Visa e Visa may extend the maximum time for delivery V3 1111 Page 34 s Credit Refunds 1 Restrictions Merchant must not a accept payment from a Cardholder for the purpose of depositing funds to the Cardholder s account The loading of value to a Visa Prepaid Card that has been designated for participation in Visa ReadyLink by the Issuer is excluded from this restriction or b process a Credit Transaction Receipt without having completed a previous retail Transaction with the same Cardholder except as specified in Section 3 s of this Operating Guide 2 Credit Transaction Receipt Merchant may at its discretion prepare a Credit Transaction Receipt when a valid Transaction Receipt was previously processed and the Cardholder either cancelled the Transaction later or returned the goods Merchant then must prepare a Credit Transaction Receipt that a includes the Cr
159. l other information is included i e date amount number of items etc v The batch deposit total must match to the settled reconciled amount vi If you use a Terminal with Electronic Capability transmit the batch information If your Terminal does not have Electronic Capability include the electronic bank drafts with Merchant s manual deposit Each time Merchant closes a batch Merchant s Terminal begins a new batch with the next Transaction processed b Adjustments to Merchant s Account Bank will make Transaction adjustments debits or credits to Merchant s Settlement Account if Bank notes a discrepancy between Merchant s batch header and the corresponding Transaction Receipts Common reasons for adjustments include i Total amounts shown on Transaction Receipts do not match total on batch header ii Merchant s account was credited in error and has been debited to correct the error iii Duplicated Transaction Receipts submitted V3 1111 Page 5 iv Card Account Number is incorrect incomplete v Transaction amount is unreadable illegible vi Cardholder Account Number is unreadable illegible Bank will notify Merchant of any adjustments Bank makes to Merchant s Settlement Account 15 Retrieval Requests a Merchant is responsible for retaining and providing copies of Transaction Receipts for two years or longer if required by the Card Associations From time to time Bank will ask Merchant to submit a copy of
160. limitation the Discover Acceptance Mark Dispute A Discover term relating to a Retrieval Request request for a Chargeback Chargeback request for Representment of a Discover Transaction or Representment of a Discover Transaction as the context may require by Processor or Discover including V3 1111 Page 12 supporting information and documentation provided by Processor in connection with any of the foregoing and Processor s process of resolving or effecting any of the foregoing Domestic Transaction A Transaction where the Issuer of the Card is located in the Transaction Country Domestic Transaction Receipt A Transaction Receipt evidencing a Domestic Transaction Dynamic Card Verification Value Data DCVV An encrypted calculated value in the Track Data generated by a Contactless Payment Device that is transmitted as part of an Authorization Request for a Discover Transaction conducted with a Contactless Payment Device Dynamic Currency Conversion A conversion of the currency in which goods or services are normally priced into a different currency as agreed upon by the Cardholder and Merchant Electronic Capability Point of Transaction Capability where all of the following are true a Transaction Authorization is required or the terminal is capable of reading and acting upon the Service Code in the Magnetic Stripe or information provided in the Chip b the Authorization Response is obtained Online or as instructed by the I
161. m the customer or a third party V3 1111 Page 52 g Illegal or Brand Damaging Transactions Merchant must not submit for payment into Interchange any Transaction that is illegal or may in the sole discretion of MasterCard damage the goodwill of MasterCard or reflect negatively on the MasterCard brand MasterCard considers any of the following activities to be in violation of this rule 1 the sale or offer of sale of a good or service other than in full compliance with law then applicable to the Acquirer Issuer Merchant Cardholder or MasterCard or 2 the sale of a good or service including an image which is patently offensive and lacks serious artistic value such as by way of example and not limitation images of nonconsensual sexual behavior sexual exploitation of a minor nonconsensual mutilation of a person or body part and bestiality or any other material that MasterCard in its sole discretion deems unacceptable for sale in connection with a Mark h Authorizing Transactions When required by the Standards or by Bank the Merchant must obtain an Authorization before completing a Transaction Standards concerning Authorizations are set forth in the MasterCard Authorization System Manual and in other manuals Merchant acceptance procedures are set forth in Chapter 2 of the the Chargeback Guide which can be found at http Awww mastercard com us wce PDF TB_CB_Manual_5_08 pdf i Submitting Transactions 1 Valid Transactions A
162. ment of higher fees and or a Dispute or loss of a Dispute of the Discover Transaction iii Merchant must submit Sales Data as described in Section 5 I 3 iv Merchant must not submit Sales Data until Merchant has shipped the merchandise or provided the service purchased by the Cardholder b In addition to complying with the requirements for preparation of Sales Data in Section 5 j Merchant must obtain the Cardholder name and shipping address from the Cardholder for each mail order or telephone order Discover Transaction Merchant must retain such information along with the shipping date and other information required to be included in the Transaction Documentation for the record retention period in Section 5 I 6 Merchant must provide the shipping date to the Cardholder at the time of each telephone order Discover Transaction and upon request for each mail order Discover Transaction c At the time of delivery of merchandise or services ordered in a mail order or telephone order Discover Transaction Merchant must provide the Cardholder with Transaction Documentation that includes the information as described in Section 5 j If delivery of the merchandise is made to the Cardholder Merchant must obtain through the delivering carrier the Cardholder s signature as proof of delivery If the Cardholder requests delivery of the merchandise to a third party Merchant must obtain through the delivering carrier the signature of an authori
163. ment verification or similar wording ina 10 point Helvetica type font V3 1111 Page 77 Table 9 Data Requirements Manual Cash Disbursement Transaction Receipt TRANSACTION DATA REQUIREMENTS Imprint Imprint of the name and location of the Member Merchant or Cash Disbursement Merchant Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Transaction type Cash Disbursement Legend identifying the party to whom it will be delivered e g Member copy The other copies of the formset should also be appropriately labeled Merchant copy or Cardholder copy Space for Cardholder signature Space for Cardholders address may be eliminated from the Cash Disbursement Transaction Receipt used only by a Cash Disbursement Merchant Space for Cardholder identification Space for clerk s signature or identification Authorization Approval Code Space for four printed digits above or below Account Number The Cardholder copy of a Transaction Receipt must bear the legend Retain this copy for statement verification or similar wording ina 10 point Helvetica type font V3 1111 Page 78
164. mmon types of Card fraud is unauthorized use of a lost or stolen Card Even if the Cardholder has not yet reported the Card missing a Merchant can often prevent a fraudulent sale if the Merchant is alert to unusual Cardholder behavior Consider calling your telephone authorization number for a Code 10 see procedure below if a Cardholder Makes a purchase without regard to size color style or price Makes several individual purchases that approach but do not exceed Merchant s Floor Limit on Card Transactions Rushes stalls or attempts to distract the Merchant as the customer completes the Transaction The Cardholder states that the Card s Magnetic Stripe is damaged or worn and or claims the Card information must be manually entered on Merchant s electronic Terminal Purchases a large item e g a refrigerator and insists on taking it immediately rather than have it delivered even when delivery is included in the price Pulls the Card from a pocket rather than a wallet Signs the Transaction Receipt in a deliberate or unnatural manner Appears too young to be making purchases with a Card Buys clothing without trying it on or declines alterations even if they are included in the price Charges expensive items on a newly valid Card Cannot or will not present a photo ID or provides a temporary ID with no photo Any of these circumstances can occur in a legitimate transaction Use your best judgment and call
165. n Approved Currency v the original Authorization Approval Code for the Authorization being cancelled vi the expiration date on the Discover Card being presented 4 digits mm yy and vii a brief reason the Authorization is being cancelled 9 Authorization Requests must be submitted in an Approved Currency Merchant may not convert from Merchant s local Approved Currency into another Approved Currency including U S Dollars prior to submitting the Authorization Request Merchant may not submit an Authorization Request in any currency other than an Approved Currency 10 Minimum Maximum Transaction Amount Prohibited A Merchant may require that a Card Sale or Cash Advance with a Credit Card but not a Debit or Prepaid Card meet a minimum amount of up to 10 provided Merchant applies such minimum limit uniformly to all card transactions Merchant may not limit the maximum amount that a Cardholder may spend when using a Card other than when the Issuer has not provided a positive Authorization Response for a Card Transaction except that Merchant may permit a U S federal agency or an institution of higher education to limit the maximum amount that a Cardholder may spend witha Credit Card but not a Debit or Prepaid Card provided Merchant applies such maximum limit uniformly to all card transactions h Verification of Discover Card Expiration Date Merchant must check or obtain the expiration date on the Discover Card and confirm that the Disc
166. n Electronic Commerce or Mail Phone Order Merchant conducts its business regardless of its Web site or server locations Person Any individual or entity including any natural person corporation partnership joint venture association limited liability company joint stock company business trust unincorporated organization governmental entity or any other entity of any nature kind and description whatsoever Pickup Response An Authorization Response where the Transaction is declined and confiscation of the Card is requested PIN A personal identification alpha or numeric code that identifies a Cardholder in an Authorization Request originating at a terminal with Electronic Capability POI Point of Interaction This MasterCard term relates to Point of Transaction Point of Transaction One of the following a in a Face to Face Environment the physical location at which a Merchant completes a Transaction Receipt b in a Card Present Environment where an individual representing the Merchant is not present the physical location at which a Cardholder completes a Cardholder Activated Terminal Transaction or c at an Online Address the checkout page s of a Merchant s Web Site at which a Cardholder completes a Transaction Point of Transaction Capability The capability of a Merchant Acquirer or Cardholder Activated Terminal to obtain an Authorization and process Transaction Receipt data The Visa Operating Regulations refers to thes
167. n compliance with Requirements of Law or any of the requirements in Section 6 or iv if Merchant otherwise fails to comply with any of Merchant s obligations under the Merchant Agreement this Operating Guide or the Operating Rules 7 Advertising and Publicity Except as otherwise explicitly permitted by the terms of the Merchant Agreement or this Operating Guide neither party nor its respective agents shall use the registered trademarks service marks logos or any proprietary information of the other party or the other party s Affiliates without the prior written consent of the owner of such intellectual property and the prior review by such owner of the materials in which such marks logos or proprietary information is proposed to be used including in any press release Neither party shall make any public statement or press release regarding the Merchant Agreement or this Operating Guide without the prior written approval of the other party 8 Employee Purchases Merchant is prohibited from conducting Cash Advances Discover Transactions or returns for goods or services with the Merchant s owners officers or employees using such individuals personal Discover Cards except for bona fide Discover Transactions in the ordinary course of Merchant s business Merchant is responsible for the actions and omissions of Merchant s principals officers employees and agents including any fraud committed by and or any intentional or negligent acts or
168. n half and mailed to the following address V3 1111 Page 70 Pick Up Cards Attn Network Security P O Box 3013 New Albany OH 43054 Payment of a reward for Merchant s retention of Discover Cards in response to an Issuer s Pickup Card request is at the discretion of the Issuer Merchant will bear all responsibility for claims liabilities costs and expenses as a result of any failure by Merchant Merchant employees vendors or agents that attempt to retain a Discover Card without the Issuer s direct request or that fail to use reasonable lawful means in retaining or attempting to retain a Discover Card Notwithstanding the foregoing Merchant is not required to comply with any Issuer s pick up Card request h Reminders for Preventing Fraudulent Card Usage In addition to complying with Authorization requirements in Section 5 q Merchant should pay careful attention to both the Discover Card presenter and the Discover Card presented In particular Merchant should i Verify that the signature on the Transaction Documentation is reasonably similar to the signature on the back of the Discover Card If the signature on the back of the Discover Card is not reasonably similar to the signature on the Transaction Documentation Merchant must utilize the Code 10 procedures outlined in Section 5 r 2 ii Check the signature panel for signs of erasure or alteration Merchant should not accept the Discover Card if the word VOID a
169. n indicator c Include the transmission of the Account Funding Transaction indicator 5 Small Ticket Transactions a General Requirements A Visa Consumer Card or Commercial Visa Product Transaction of 15 or less as specified in this Section 3 u 5 of this Operating Guide may qualify as a Small Ticket Transaction b Merchant Requirements A Transaction must be processed by a Merchant assigned one of the following Visa Merchant Category Codes to qualify as a Small Ticket Transaction i Local Commuter Passenger Transportation 4111 ii Taxicabs and Limousines 4121 iii Bus Lines 4131 iv Toll and Bridge Fees 4784 v Eating Places and Restaurants 5812 vi Fast Food Restaurants 5814 vii News Dealers Newsstands 5994 viii Laundries Family Commercial 7211 ix Dry Cleaners 7216 x Quick Copy Reproduction and Blueprinting Services 7338 xi Parking Lots and Garages 7523 xii Car Washes 7542 xiii Motion Picture Theaters 7832 xiv Video Tape Rental Stores 7841 c Transaction Processing Requirements i If the Transaction is 15 or under the Merchant is not required to a obtain the Cardholder signature or b provide a Transaction Receipt unless the Cardholder requests one ii A Merchant must obtain Authorization for a Small Ticket Transaction iii The Point of Transaction Terminal must read and transmit track 1 or 2 of the Magnetic Stripe or unaltered Chip data as specified in the appropr
170. n the United States would not comply with U S law or other Requirements of Law applicable to the Merchant regardless of the jurisdiction in which the Merchant accepts or conducts Discover Transactions vii Merchant fails to comply with the terms governing Discover Card Acceptance in the Operating Rules viii the procedures used by the Merchant to conduct transact transmit or store Discover Transactions and related data do not comply with the Security Requirements or the Operating Rules ix Merchant uses the Discover Program Marks in a manner inconsistent with the license granted to Merchant x Merchant has breached the Merchant Agreement this Operating Guide or a Requirement of Law xi Merchant has had or may have an unusual or inappropriate number of Cardholder inquiries credit requests or Disputes during a relevant period or xii Merchant s financial condition or other conditions warrant earlier termination 2 Inthe event a Merchant s Discover Card Acceptance is terminated Processor will cease to provide the Card Program services to Merchant except in connection with the issuance of Credit Transactions or the resolution of Disputes related to Discover Transactions conducted prior to the termination date Merchant may not thereafter transmit any Authorization Requests or Sales Data for Discover Transactions Notwithstanding any termination of Merchant s Discover Card Acceptance Merchant shall remain fully responsible for Disputes of D
171. name as it appears on the Discover Card if present ii Discover Account Number and Discover Card expiration date if present iii Cardholder s complete mailing address and telephone number iv transaction date v anticipated arrival date and length of stay vi reservation confirmation number vii Authorization Approval Code and viii advance deposit amount including applicable taxes iii Merchant must provide the Cardholder with written confirmation of an advance deposit that contains the following information i Cardholder copy of the advance deposit Transaction Documentation ii reference that charges were placed on the Discover Card Account iii Cardholder s name as it appears on the Discover Card if present iv Discover Account Number truncated as and to the extent required by law and Discover Card expiration date if present unless prohibited by law v reservation confirmation number vi anticipated arrival date vii the cancellation policy in its entirety including the date and time the cancellation privileges expire and viii any other pertinent information related to the reserved accommodations iv fa Cardholder requests a cancellation of a reservation in accordance with Merchant s cancellation policy and time frames Merchant must issue a Credit Transaction to the Cardholder s Discover Card Account for the full amount of the advance deposit charged to the Discover Card Account within ten 10 calendar days
172. nd ix the Discover Transaction date If Merchant electronically scans or reads a Discover Card it must compare the Discover Account Number on the printed Transaction Receipt to the embossed number on the front of the Discover Card to confirm the numbers match If the numbers do not match Merchant may not accept the Discover Card as payment and should contact Processor Requirements for the preparation of Sales Data for Card Absent Environment transactions are described in Section 5 0 and Merchant must comply with such requirements 3 If Merchant is unable to successfully capture the Discover Card information electronically using a Point of Transaction Terminal in a Card Present Environment transaction for any reason and must hand key the Discover Card information into the Point of Transaction Terminal Merchant must use a suitable imprinter to clearly imprint the embossed information including the stylized D where designated in Section 5 r 1 from the Discover Card on the Transaction Receipt and Merchant must fully complete the Transaction Receipt as described below The imprint must clearly and in a legible manner capture all of the embossed Discover Card security features identified in Section 5 r except as noted in Section 5 0 Card Absent Environment and Section 5 p Special Circumstances If a valid Discover Card as described in Section 5 r 1 is not capable of being imprinted Merchant may request the Cardholder s standard Discover C
173. ng Guide Cash Over Section 5 p 6 does not constitute a Cash Advance that is subject to this Section 5 q In addition to the other requirements of this Operating Guide Cash Advance Merchants must comply with the additional requirements set forth in this Section 5 q in connection with Cash Advance transactions 1 Cash Advance Merchants Only approved Cash Advance Merchants are permitted to dispense Cash Advances If Merchant is not an approved Cash Advance Merchant and Merchant dispenses cash in connection with the presentation of a V3 1111 Page 66 Discover Card the entire Cash Advance is subject to Dispute Cash Advances must be conducted in U S Dollars Any Cash Advance that is conducted in a currency other than U S Dollars even an Approved Currency is subject to additional fees and Dispute 2 Conditions for Cash Advance Card Acceptance Cash Advance Merchants must comply with each of the following requirements for each Cash Advance transaction a A Discover Card must be physically present for all Cash Advances Cash Advance Merchants are prohibited from distributing cash when the Discover Card is not physically present and if a Cash Advance Merchant distributes cash when the Discover Card is not physically present the Cash Advance may be subject to additional fees and Dispute b A Cash Advance Merchant must verify that the Discover Card is not expired before the Cash Advance Merchant may accept the Discover Card for a Cas
174. nk for instructions If Merchant Bank instructs Merchant to recover the Card the Merchant must comply with the Card Recovery procedures set forth in Section 3 q of this Operating Guide 3 Blank Signature Panel a If the signature panel on the Card is blank in addition to requesting an Authorization a Merchant must do all of the following i Review positive identification bearing the Cardholder s signature such as an unexpired passport or driver s license to validate the Cardholder s identity ii Indicate the positive identification including any serial number and expiration date on the Transaction Receipt iii Require the Cardholder to sign the signature panel of the Card prior to completing the Transaction b A signature panel with the words See D or equivalent language is considered to be blank c The requirements of this section do not apply to Transactions resulting from the use of a Vehicle Specific Fleet Card 4 Missing Imprint or Expired Card a Unless Merchant has obtained independent evidence of the Cardholder s identity and noted it on the Transaction Receipt Merchant must validate the Cardholder s identity as specified in Section 3 k 1 of this Operating Guide if the Card cannot be imprinted on the Transaction Receipt or ii a Cardholder presents an Expired Card b The foregoing requirement does not apply to Transactions originating at Magnetic Stripe Terminals that provide Transaction
175. nk s Cardholders and other Visa Member s Cardholders in exactly the same manner Merchant s normal discount rates controls regulations and procedures apply b Merchant must not require a Cardholder as a condition for honoring a Visa Card or Visa Electron Card to sign a statement that waives the Cardholder s right to dispute the Transaction with the Issuer 5 Expired or Invalid Cards Merchant must not accept an Expired Card unless an Authorization is obtained Merchant must not accept a Card prior to the embossed valid from date When a Card is embossed or printed with a valid from date the Card is considered valid on the date specified as follows a If the valid from date format is month year the Card Validity Date is the first day of the embossed or printed month and year b If the valid from date format is month day year the Card Validity Date is the embossed or printed date 6 Affiliated Merchant An Affiliated merchant may not offer preferential treatment to the Visa and Visa Electron Cardholders of a Member e Discounts at Point of Sale 1 Advertised Price Any purchase price advertised or otherwise disclosed by Merchant must be the price associated with the use of a Visa Card or Visa Electron Card V3 1111 Page 23 2 Discounts Merchant may offer a discount as an inducement for a Cardholder to use a means of payment that Merchant prefers provided that the discount is a clearly disclosed as
176. nly at the locations approved by Bank Merchant will comply with Regulation E all applicable law the Operating Rules and this Operating Guide in connection with each Online Debt Card Transaction Merchant must treat Transactions by Cardholders from all Debit Card Issuers in the same manner Merchant may not establish a minimum or maximum amount for the Transaction The rules regarding assessing Surcharges on Debit Transactions vary between the Debit Networks If Merchant wants to assess a surcharge for Debit Transactions Merchant is required to obtain surcharge guidelines from Bank and abide by the specifications outlined for each Debit Network Merchant may not require additional information other than the PIN for the completion of the Transaction unless specifically required by the Operating Rules for a particular type of Transaction which typically will be for an exception procedure Merchant may not require or request a Cardholder signature Merchant may not complete a transaction without entry of the PIN by the Cardholder The PIN must be entered into the PIN pad only by the Cardholder Merchant cannot accept the PIN from the Cardholder verbally or in written form The PIN pad must be situated in such a way that the Cardholder may enter a PIN without revealing the PIN to Merchant s employees or others If Bank allows Merchant to conduct preauthorized Debit Card Transactions Merchant does not have to obtain a PIN for each preaut
177. nsaction b contains a Card Imprint and signature if either or both was obtained and c is supplied in response to a Retrieval Request T amp E Express Service A service offered by a Lodging or Car Rental Merchant to a Cardholder that agrees to a Dynamic Currency Conversion Transaction To expedite hotel check out or car rental return the service allows a customer to bypass the typical face V3 1111 Page 18 to face hotel check out or car rental return process without receiving a Transaction Receipt As part of the service the Merchant mails the Transaction Receipt for the T amp E Transaction to the Cardholder within 3 business days T amp E Merchant A Merchant whose primary function is to provide travel related services as specified in the Visa Operating Regulations T amp E Services Travel related services provided to Eligible Cardholders including a Priority Check out Service b T amp E Advance Deposit Service and c Visa Reservation Service T amp E Transaction A Transaction at a T amp E Merchant Outlet Telephone Service Transaction A Transaction in which a Cardholder uses a Visa Card to purchase a telephone call These Transactions include but are not limited to Magnetic Stripe Telephone Transactions TID Transaction Information Document MasterCard term which relates to a Transaction Receipt Track Data The data that is contained on the Magnetic Stripe and or wireless transmitter of a Discover Card including CV
178. nse that a Member accesses Online Expired Card A Card on which the embossed encoded or printed expiration date has passed Face To Face Environment An environment where a Transaction is completed under all of the following conditions a the Card is present b the Cardholder is present and c an individual representing the Merchant completes the Transaction Transactions in this environment include Retail Transactions Manual Cash Disbursements and Bill Payment Transactions Transactions in this environment exclude Electronic Commerce Transactions Installment Billing Transactions Mail Phone Order Transactions Recurring Transactions and Cardholder Activated Terminal Transactions Factoring A Merchant submitting Authorization Requests or Transaction Receipts on behalf of one or more other businesses that actually conducted the Transaction Fee Collection A VisaNet transaction used by a Member or Visa to collect financial obligations of a Member Floor Limit An amount designated in a Merchant Agreement as the amount below which the Merchant is not required to obtain Authorization for Transactions Foreign Currency A currency other than local currency Fulfillment A document image that the Acquirer supplies in response to a Copy Request or Retrieval Request using the VisaNet Copy Request and Fulfillment Service Health Care Merchant A Merchant other than a pharmacy whose primary business is providing health care services and iden
179. nt Bank or b provide acceptable proof of destruction of this information to Merchant Bank 4 Storage a A Merchant its Agent and Merchant Servicers must store all material containing Cardholder Account Numbers or imprints such as Transaction Receipts car rental agreements and carbons in an area limited to selected personnel and ii render all data unreadable prior to discarding b The Merchant its Agent or Merchant Servicers must not retain or store Magnetic Stripe Data or equivalent data on the Contactless Payment chip subsequent to Authorization of a Transaction c The Merchant its Agent or Merchant Servicers must not retain or store Card Verification Value 2 data subsequent to Authorization of a Transaction and must not request Card Verification Value 2 data on any paper Order Form 5 Additional Merchant Security Requirements a Merchant must comply with the following security requirements i Implement and maintain all of the security requirements as specified in the Cardholder Information Security Program Merchant is responsible for demonstrating compliance by its Agents and Merchant Servicers with the requirements of the Cardholder Information Security Program ii Immediately notify Merchant Bank of the use of a Merchant Servicer iii Ensure that its Merchant Servicers implement and maintain all of the security requirements as specified in the Cardholder Information Security Program Merchant must have a w
180. nt must write the Response Code in the space provided on the Transaction Receipt Verify all information is correct and legible on all copies of the Transaction Receipt Do not circle the expiration date or obscure the Card or Transaction information in any way Watch the Cardholder sign the Transaction Receipt compare the signature with the one on the back of the Card If you can t tell whether the signatures match ask for a photo ID Return the Card and Cardholder copy of the Transaction Receipt to the Cardholder f you believe the Transaction may be fraudulent even though Merchant received Authorization call for a Code 10 as described below 8 Suspect Transactions a How to Identify a Fraudulent Card In addition to checking for the Card features described in Section 1 b i always inspect the Card for the following Overall Appearance Check for discoloration or uneven Card surfaces Embossing Card Account Number valid dates Cardholder name and security character should appear consistent in size and spacing and should not look ghosted new characters re embossed over originals Valid Dates or Expiration Dates Make sure the Card is not expired or being used before it s valid Signature Panel The panel should not show evidence of tampering The panel should be signed and the signature should match Cardholder s signature on the Transaction Receipt b Other Signs of Fraud One of the most co
181. o Cardholders by Issuers ii US 10 00 for each Discover Card reissued by Issuers and iii a US 7 50 penalty for each unique Discover Account Number compromised These fines the Data Security Breach Fees may be assessed for each data security breach incident at Merchant or one of Merchant s agents 5 Enforcement Processor reserves the right to conduct on site visits of Merchant and Merchant s agents or to otherwise contact any of Merchant s agents directly to ensure compliance with all of the requirements of this Operating Guide and Operating Rules Merchant will implement corrective actions immediately upon receipt of written notification from Processor and will provide Processor with documentation detailing those actions Failure to implement immediate corrective actions may at Processor s discretion result in termination of Merchant or the offending agent and or termination of the Merchant Agreement 6 Termination of Processing Services Processor may in its sole discretion terminate or temporarily suspend the receipt of Processor s processing services by Merchant Discover Transaction types or Merchant types for any reason including i if Discover or Processor have security concerns including if either identifies an actual or suspected failure to comply with the Security Requirements ii if Merchant is conducting activities in a Prohibited Merchant Category including as a Sanctioned Person iii if Merchant is otherwise not i
182. o the key entered last four digits of the embossed or printed Account Number and d transmits the full unaltered contents of the Magnetic Stripe or Chip in the Authorization message ACH The Automated Clearing House Network ACH Rules Collectively the National Automated Clearing House Association NACHA Operating Rules and NACHA Operating Guidelines as the same are amended from time to time Acquirer A Member in the case of Visa MaserCard Transactions or network acquirers in the case of Discover Transactions that acquire Transactions from Merchants and directly or indirectly enters the resulting Transaction Receipt into Interchange Additional Commercial Card Data Data contained in the Clearing Record for a Commercial Visa Product Transaction as specified in the Visa Operating Regulations Address i For an individual such individual s residential or business street address or if the individual does not have a street address a post office box number or a street address of the next of kin or another contact individual and ii For a Person other than an individual a principal place of business local office or other physical location Address Verification Service A service provided through which a Merchant may verify a Cardholder s billing address in whole or in part prior to completing a Transaction Primarily used in the Card Absent Environment or an Automated Fuel Dispenser Transaction Advance Payment Service A Visa service
183. of Cardholder indebtedness Card Verification Value A unique check value encoded on the Magnetic Stripe and replicated in the Chip of a Card or the Magnetic Stripe of a Visa TravelMoney Card to validate Card information during the Authorization process The Card Verification Value is calculated from the data encoded on the Magnetic Stripe or Chip using a secure cryptographic process Card Verification Value 2 A unique check value generated using a secure cryptographic process that is indent printed on the back of a Visa Card or provided to a Virtual Account Holder Cardholder An individual to whom a Card is issued or who is authorized to use this Card Cardholder Access Device A terminal personal computer or other device that a Cardholder uses to initiate an Electronic Commerce Transaction Cardholder Activated Terminal CAT A Magnetic Stripe Terminal or Chip Reading Device such as an Automated Dispensing Machine Limited Amount Terminal or Self Service Terminal that is not an ATM Cardholder Certificate An electronic document that authenticates a Cardholder in a Secure Electronic Commerce Transaction that meets the Secure Electronic Transaction Specification Cardholder Information Security Program CISP A program developed by Visa U S A that defines the standard of due care and enforcement for protecting sensitive Cardholder information Information regarding the Cardholder Information Security Program may be obtained from Merchant B
184. of Merchant s receipt of the Cardholder s cancellation request In addition Merchant must i provide a cancellation number to the Cardholder with instructions to retain a record of the number ii immediately upon issuance of the Credit Transaction prepare and submit Credit Sales Data for the full amount of the Discover Transaction previously charged to the Discover Card Account and iii send a copy of the Transaction Documentation reflecting the Credit Transaction to the Cardholder within seven 7 calendar days of issuing the Credit Transaction v The credit Sales Data Merchant must deliver to Processor for a cancellation of an advance deposit reservation must contain the i Cardholder s name as it appears on the Discover Card if present ii Discover Account Number and Discover Card expiration date if present iii Cardholders complete mailing address and telephone number if available iv Discover Transaction date v reservation cancellation number and vi advance deposit amount including applicable taxes The V3 1111 Page 64 Transaction Documentation prepared by Merchant in connection with an advance deposit Credit Transaction must in addition to the information required above display the words Advance Deposit Refund printed clearly on Merchant s signature line c Overbookings If accommodations reserved by a Cardholder pursuant to a guaranteed reservation or advance deposit are unavailable upon the Cardholder
185. om accepting Discover Account Numbers by electronic mail over the Internet b Merchant is prohibited from accepting any Internet Discover Transaction unless the transaction is sent by an Internet browser that supports the protocol and security measures described in the Security Requirements c Merchant is prohibited from accepting any Internet Discover Transaction except in compliance with this Operating Guide including the following additional requirements i Merchant must obtain Authorization for each Internet Discover Transaction in accordance with Section 5 q 2 or Section 5 g 5 and in accordance with the CID provisions in Section 5 i ii Merchant must obtain Address Verification for each Internet Discover Transaction as described in Section 5 0 4 Merchant is prohibited from completing any Internet Discover Transaction where the billing address provided by the customer at the time of the Internet Discover Transaction does not match the billing address on file with the Address Verification Service Failure to obtain Address Verification in connection with an Internet Discover Transaction may result in a negative Authorization Response payment of higher fees and or a Dispute or loss of a Dispute of the Discover Transaction iii Merchant must submit Sales Data as described in Section 5 I 3 iv Merchant must not submit Sales Data until Merchant has shipped the merchandise or provided the service purchased by the Cardholder
186. onducted by Discover Processor or a third party designated or approved by Discover or Processor in their reasonable discretion of Merchant s and or any of Merchant s agent s operations procedures and records relating to Merchant s and or any of Merchant s agent s compliance with the Merchant Agreement including the Security Requirements and Requirements of Law as applicable All such examinations and audits will be at Merchant s sole cost and expense The scope of each examination and audit shall meet the standards prescribed by Discover and or Processor and the results may be made available to Discover 3 Data Security Procedures a Merchant must comply and must ensure that Merchant s agents and contractors comply with the Security Requirements to the extent applicable In exercising its rights under the Operating Rules Discover may contact any Merchant and Merchant s agents directly Processor may periodically request that Merchant and or any of Merchant s agents certify Merchant s or their respective compliance with the Security Requirements including copies of security compliance assessments and reports processes procedures technology and policies and Merchant will promptly comply and must ensure that Merchant s agents promptly comply with such requests provided that such requests will not require the disclosure of any information prohibited from being disclosed pursuant to Requirements of Law Merchant will promptly notify Pro
187. ord a on the same screen view as the checkout screen used to present the total purchase amount or b within the sequence of Web pages the Cardholder accesses during the checkout process viii The Merchant s consumer data privacy policy ix The security method for the transmission of payment data b Display of Marks A Web Site operated by a Merchant Sponsored Merchant or Internet Payment Service Provider must display the Visa Marks as specified in Section 3 c 3 of this Operating Guide A 3 D Secure capable Electronic Commerce Merchant that displays the Verified by Visa Mark as specified in Section 3 c 2 must not use the Mark a In a way that implies endorsement of any other product or service or b As an Acceptance Mark in any application c i Electronic Commerce Merchants must offer Cardholders a secure Transaction method such as a Secure Socket Layer SSL or b 3 D Secure d Internet Payment Service Provider Customer Support An Internet Payment Service Provider must provide customer service through its Web Site if the Cardholder accesses the Internet Payment Service Provider s Web Site directly and ii may provide customer service either a directly or b through its Sponsored Merchants 3 Transaction Receipt Data Requirements a General In addition to the requirements specified elsewhere in this Operating Guide a Transaction Receipt completed for an Electronic Commerce Transaction must include
188. ored in the High Risk Chargeback Monitoring Program specified in Section 2 2 G must not aggregate Transactions b An Electronic Commerce Merchant including an Internet Payment Service Provider that aggregates Transactions must do all of the following i Obtain an Authorization of no more than 15 at the start of each aggregation session ii Complete the aggregation session within 3 calendar days iii Aggregate Transactions from a single Merchant Outlet in each aggregation session iv Support Partial Authorization v Submit a Sales Draft for the actual purchase amount vi At the check out screen inform the Cardholder of all of the following A That transactions are aggregated B The terms of aggregation including the maximum number of calendar days aggregated Transaction value and that the Issuer may hold available funds up to 15 for 3 calendar days C How details of Aggregated Transactions can be obtained vii Provide a Transaction Receipt via e mail that captures the details of individual purchases during the aggregation session as follows A Goods or services purchased b Amount and date of each individual purchase C Total Transaction Amount charged D Transaction Date for Aggregated Transactions the Transaction Date is the date the Merchant submits the Sales Draft to Merchant Bank viii lf requested provide Cardholder purchase history for 120 calendar days after purchase V3 1111 Page 29 9 Transactions At M
189. orming its obligations in compliance with all Requirements of Law the Merchant Agreement this Operating Guide and the Operating Rules Merchant is responsible for ensuring that each of its employees agents and contractors comply with all such applicable Requirements of Law the Merchant Agreement this Operating Guide and the Operating Rules With respect to any concerns regarding any potential noncompliance of Merchant your employees or agents with Requirements of Law the Merchant Agreement this Operating Guide or the Operating Rules Processor may conduct an investigation of Merchant regarding the relevant facts and Merchant agrees to fully cooperate in such investigation In addition to any other remedies available to Processor at law under the Merchant Agreement and the Operating Rules Merchant may be assessed fees and penalties for any failure by you to comply with the terms conditions and requirements of the Merchant Agreement this Operating Guide or the Operating Rules as such fees and penalties may be specified by Discover from time to time 2 Books and Records Examination of Merchant s Performance Merchant must maintain books and records of Merchant s performance of all of Merchant s obligations under the Merchant Agreement Merchant and each of Merchant s agents and contractors shall be subject to periodic examinations and audits at such times and frequencies as Discover or Processor deem appropriate in their reasonable discretion c
190. osits for purchases Merchant may not send Sales Data for goods or services ordered by a Cardholder in a Discover Transaction until the goods or services have been delivered or furnished to the Cardholder Sales Data for Discover Transactions submitted for Settlement more than sixty 60 calendar days after the Discover Transaction date may be rejected subject to higher fees or subject to Dispute Processor may withhold Settlement and or assess higher fees to Merchant for any Sales Data sent to Processor that does not include all of the information required to be included by Discover Additional requirements for the preparation and transmission of Sales Data for Card Absent Environment transactions are described in Section 5 0 and Merchant must comply with these requirements Merchant must include all merchandise and or services purchased or returned refunded at one time and at one cash register on one Transaction Receipt Credit Transaction Receipt or Transaction Slip or in a single transmission of electronic Discover Transaction data and Merchant must transmit the Sales Data relating to merchandise and or services purchased or returned refunded at one time and at a single cash register to Processor in a single electronic transmission of Sales Data unless otherwise approved by Processor in writing Notwithstanding the foregoing Merchant may use separate Transaction Receipts Credit Transaction Receipts or Transaction Slips or use multiple transmissions to su
191. other documentation requested by Processor or the Discover the Discover Transaction may be subject to Dispute including Chargeback or other fees m Credit Transactions for Returns 1 Ifa Cardholder returns goods or services purchased with a Discover Card in accordance with Merchant s return policy Merchant must give a Credit Transaction to the Discover Card Account as described in this Section 5 m If a Cardholder receives merchandise or services that are defective or not as agreed upon at the time of the Discover Transaction Merchant must give the Cardholder a Credit Transaction if requested by the Cardholder If Merchant does not give a Cardholder a requested Credit Transaction in the above circumstances the Discover Transaction may be subject to Dispute Merchant will submit the Sales Data for each Credit Transaction to Processor within ten 10 calendar days after Merchant has promised the Credit Transaction to the Cardholder or a Dispute for the original Discover Transaction may occur Merchants may not issue Credit Transactions for the Cash Over portion of a Discover Transaction Processor is not obligated to reimburse Merchant for any Credit Transactions granted by Merchant for the Cash Over portion of a Discover Transaction Merchant must give written evidence of the Credit Transaction to the Cardholder in the form of Transaction Documentation Excessive Credit Transactions by Merchant may result in Merchant being required to establish a Re
192. over Account Number starting with 622 is embossed on the front of the Discover Card b Embossed digits on the Discover Card should be clear and uniform in size and spacing c The embossed expiration date appears in mm yy format and indicates the last month in which the Discover Card is valid d The Discover Card contains a Magnetic Stripe e A three dimensional hologram image of a temple in the foreground with Chinese characters in the background appears on the front of all such Discover Cards The hologram reflects light as it is rotated f Valid Thru and the Cardholder name which may not be in English are embossed on the front of the Discover Card V3 1111 Page 69 g The CID appears on the upper right corner of the signature panel ii From time to time Processor may provide you details regarding security features of Discover Cards bearing Other Acceptance Marks 2 Code 10 Suspicious Situations If Merchant is suspicious of the validity of a Discover Card or the Discover Card presenter for any reason Merchant should notify Processor using the Code 10 Authorization procedures described below The Code 10 Authorization procedures apply only to situations where the Discover Card is physically present but can be used regardless of the amount of the Discover Transaction a Merchant should call Processor s Authorization Center and ask for a Code 10 Authorization b Security personnel will ask a brief series
193. over Card is not expired prior to completing the Discover Transaction The Discover Card is valid through the last day of the month embossed on the Discover Card If the Discover Card has expired Merchant cannot accept it for a Discover Transaction If Merchant is suspicious that the Discover Card presenter is not an authorized user of the Discover Card Merchant should call Processor and request a Code 10 Authorization i Card Identification Data CID Merchant is required to submit CID with the Authorization Request for a Card Absent Environment Discover Transaction Merchant s failure to include the CID in an Authorization Request where required may result in a negative Authorization Response and may increase the fees you are obligated to pay If Merchant does not submit CID with an Authorization Request for a Card Absent Environment Discover Transaction even where not required above the Discover Transaction may be subject to Dispute Merchant is prohibited from retaining archiving or otherwise storing the CID in any form or format for any reason including the recording of the CID on Transaction Documentation or the making of photocopies of the front or back of Discover Cards j Transaction Documentation 1 Merchant must prepare Transaction Documentation for each Discover Transaction and provide a copy of the Transaction Documentation to the Discover Card presenter at the time of completion of the Discover Transaction The form and format of
194. p E Advance Deposit Service a General Requirements A Lodging Merchant Cruise Line Merchant or Car Rental Company participating in the T amp E Advance Deposit Service must Accept all Visa Cards in its category of acceptance as specified in Section 3 b for an advance deposit if the Cardholder agrees to the service and i Hold a valid T amp E Advance Deposit Service contract with an Acquirer either as part of the Merchant Agreement or as a separate contract b Billing Information i The Merchant must obtain the following information from the Cardholder a Cardholder name Account Number and expiration date as displayed on the Visa Card b Telephone number and mailing address c Scheduled date of arrival for a Lodging Merchant embarkation for a Cruise Line or rental for a Car Rental Company d Intended length of stay for a Lodging Merchant or term or rental for a Car Rental Company ii The Merchant must determine the T amp E Advance Deposit Transaction amount not to exceed the following a For lodging accommodations the cost of the intended length of stay not to exceed 14 nights lodging b Cost of the cruise c For a car rental the cost of the intended term of rental not to exceed 14 days rental iii The deposit amount must be applied to the total obligation c Reservation Information The Merchant must inform the Cardholder of the following as applicable Description Lod
195. pharmacies g Internet pharmacy referral sites h multi level marketing businesses i outbound telemarketers j prepaid phone cards k prepaid phone services I rebate based businesses or m Up Sell merchants These merchant types may be classified with Merchant Category Codes 4814 5912 5962 5966 5968 and 5969 and are ineligible for Sponsored Merchant status 3 An Internet Payment Service Provider a must not transfer or attempt to transfer its financial liability by asking or requiring a Cardholder to waive his or her dispute rights b must not permit a Sponsored Merchant to transfer or attempt to transfer its financial liability by asking or requiring a Cardholder to waive his or her dispute rights and c must not deposit Transactions on behalf of another Internet Payment Service Provider as specified in Section 3 b 4 4 An Internet Payment Service Provider IPSP must a not contract with another IPSP b display the appropriate Visa Owned Marks to indicate which Cards are accepted for payment on its Sponsored Merchants Websites c report Sponsored Merchant and Transaction Information to its Acquirer and upon request to Visa d use the appropriate Merchant Category Code or other required indicators to identify Merchant or Transaction type e include the payment acceptance requirements specified in the Visa International Operating Regulations in its contracts with its Sponsored Merchant and ensure compli
196. piration date on the Discover Card 4 digits mm yy and v the total amount of the Discover Transaction in an Approved Currency When a positive voice Authorization Response is granted by the Issuer Merchant will be provided with an Authorization Approval Code Merchant must manually enter this Authorization Approval Code in the Point of Transaction Terminal in such a manner that the Authorization Approval Code is printed on the Transaction Receipt If the Discover Transaction is not conducted using a Point of Transaction Terminal Merchant must record the Authorization Approval Code in the appropriate box on the Sales Slip In the event of a negative Authorization Response neither Merchant nor your employees may comment to the Discover Card presenter on the reason for the decline of the Authorization Request If the Discover Card presenter requests information about the reason for the decline of the Authorization Request Merchant should inform the Discover Card presenter to contact the Issuer 7 Cardholder Verification and Discover Card Retrieval Occasionally in response to an Authorization Request Processor may on behalf of an Issuer direct Merchant to obtain certain information from the Discover Card presenter to verify the Discover Card presenter s identity If instructed to do so the Merchant must clearly write the appropriate identification source and numbers in the space provided on the Transaction Receipt Also in response to an Authoriza
197. ponse is obtained 16 Fleet Service Merchants a A Visa Fleet Service Merchant must comply with all of the following i Use a Point of Transaction Terminal capable of a Reading the data on track 1 or track 2 of the Magnetic Stripe or Chip that identifies the Card as a Visa Fleet Card b Displaying the appropriate prompts and c Capturing the appropriate responses ii Establish procedures for its employees or the Cardholder to enter required data on the terminal keypad b Additional Commercial Card Data for a fuel purchase Transaction completed with a Visa Fleet Card consists of sales tax ii local tax ii local tax included indicator iv accounting code i e customer code v fuel type vi unit of measure vii quantity and vii gross fuel price m VisaNet Copy Request and Fulfillment Service 1 Proprietary Interest No Direct Connect Merchant will have any property or other right claim or interest including any patent right Trade Secret right or copyright interest in the V I P System BASE Il or in any systems processes equipment software data or materials that Visa U S A or its subsidiaries use with the V I P System BASE II or in connection with a Visa Program except for Merchant supplied data or equipment 2 Confidentiality a The V I P System and BASE II consist of confidential and proprietary information belonging to Visa Each Direct Connect Merchant must take appropriate action b
198. ppears in the signature panel iii Check the Discover Card expiration date if present and not accept any expired Discover Card iv Examine the Discover Card for signs of alteration as described in Section 5 r 2 e v If Merchant has any doubts about the validity of the Discover Card or the Discover Card presenter Merchant may request additional identification from the Discover Card presenter and or utilize the Code 10 procedures outlined in Section 5 r 2 vi When using a Point of Transaction Terminal and printer to process Discover Transactions Merchant must verify that the Discover Account Number printed on the Transaction Receipt matches the Discover Account Number embossed on the front of the Discover Card vii Follow procedures for Address Verification in Section 5 0 4 if the Discover Transaction is a Card Absent Environment transaction viii Enter the CID for all Authorization Requests in all Card Absent Environment transactions Section 5 i 3 Risk Management Fraud Prevention a Merchant must notify Processor immediately of any change to the information included in its Merchant profile including if Merchant engages in or in the future elects to engage in any new lines or types of business activities not previously disclosed to Processor or if Merchant changes its business activities in any of the following ways i change of ownership ii change in type or kind of business iii change in Merchant Identity
199. r asset of a consumer including a fiduciary account but not including a Consumer Visa Deferred Debit Card A Visa Debit Card includes the following a Visa Buxx b Consumer Visa Check Card c Visa Check Card Il d Visa Gift Card e Visa Incentive Card f Visa Payroll and g Visa Prepaid Card Visa Debit Category A Card category that consists of the following a Visa Debit Card issued by a U S Issuer and b Visa Card issued by a non U S Issuer Visa Electron Card A Card that bears the Visa Electron Symbol but not the Visa Flag Symbol and is issued as specified in the Visa International Operating Regulations Visa Electron Symbol A Visa Owned Mark consisting of the Visa Wordmark comet design and name Electron Visa Flag Symbol A Visa Owned Mark consisting of the Bands Design with the Visa Logotype centered in the middle band Visa Fleet Card A Visa Purchasing Card used only for the purchase of fuel and vehicle maintenance services Visa Fleet Service An enhancement to Visa Purchasing that provides company vehicle fleet managers with information to track vehicle fuel and maintenance expenses Visa Fleet Service Merchant A Merchant whose primary business is providing fuel or vehicle maintenance services A Visa Fleet Service Merchant is identified by the following Merchant Category Codes 4468 4582 5511 5532 5533 5541 5542 5599 7531 7534 7535 7538 7542 7549 and 7699 Visa Logotype The Visa Wordmark
200. rchant Bank to attach and initiate withdrawals of funds from Merchant s accounts at other financial institutions by ACH entry sight draft preauthorized checks reverse wires or otherwise to cover the Chargebacks and Merchant hereby irrevocably authorizes the other financial institutions to withdraw the funds from Merchant s accounts and pay Bank the amount of the Chargebacks Merchant Bank will release to Merchant any of Merchant s deposits funds or property after Bank determines in its sole and absolute discretion that the deposits funds or property are not likely to be needed to cover any Chargebacks g Although Bank is unable to notify Merchant before a Chargeback is initiated in most cases Merchant may challenge the Chargeback by filing a rebuttal within the time specified in the Chargeback notice Merchant s failure to act within that time may not provide Bank with a reasonable number of days to evaluate Merchant s dispute of the Chargeback Bank is not obligated to make a Representment except to the extent allowed by the Operating Rules and Merchant s timely dispute of the Chargeback Bank does not engage in direct collection efforts against Cardholders on Merchant s behalf In Merchant s rebuttal Merchant must supply documentation substantiating that the Card and the Transaction were valid and that correct processing procedures were followed Bank recommends that Merchant include a detailed rebuttal letter along with all pertinent documen
201. rd if present iii Discover Account Number truncated as and to the extent required by law and Discover Card expiration date if present unless prohibited by law iv reservation cancellation number v date of cancellation vi The name of the Merchant s employee that processed the cancellation and 7 any other pertinent information related to the reserved accommodations v Ifthe Cardholder does not cancel a reservation in accordance with Merchant s disclosed cancellation policy and specified time frames and the Cardholder does not use the accommodations and Merchant does not rent the accommodations to another guest Merchant may submit a no show Discover Transaction equal to one night s lodging plus applicable taxes to the Discover Card Account by preparing and submitting to Processor Sales Data including the following information i Cardholder s name as it appears on the Discover Card if present ii Discover Account Number and Discover Card expiration date if present iii hotel name and location imprinted on the Sales Data iv room rate as quoted when the reservation was made including applicable taxes v transaction date and vi Authorization Approval Code The Transaction Documentation prepared by Merchant in connection with a no show Discover Transaction must in addition to the information required above display the Merchant employee s initials and the words No Show printed clearly on the Cardholder s si
202. rd bearing the Trade Name or Mark of an Affinity Partner as specified in the Visa Operating Regulations Affinity Partner A non Member entity that is not eligible for membership in Visa U S A and has a relationship with an Issuer for the issuance of Affinity Cards Aggregated Transactions a Transaction completed by an Electronic Commerce Merchant including an Internet Payment Service Provider that combines multiple purchases into a single larger Transaction before submitting it for payment processing An Aggregated Transaction must be i from a single Merchant Outlet ii made by the same Cardholder and iii on the same Account Number Agent An entity that acts as a VisaNet Processor a Third Party or both Airline Either a passenger airline Merchant or its authorized agent that sells airline tickets on behalf of the airline Approval Response An Authorization Response where the Transaction is approved Approved Currency The currencies in which a Discover Transaction may be conducted ATM An unattended Magnetic Stripe or Chip reading Terminal that has Electronic Capability accepts PINs and disburses currency or travelers cheques Authorization A process where an Issuer or its agent validates a Transaction Authorization Approval Code A code that an Issuer or its agent provides to indicate approval of a Transaction The code is returned in the Authorization Response message and is usually recorded on the Transaction Receipt as
203. rdance with Section 5 s 10 Merchant must cooperate with Discover and Processor to ensure that appropriate security measures and procedures are implemented by a mutually agreeable deadline if Merchant is notified that Merchant s or any of Merchant s agent s security procedures in connection with Discover Transactions are inadequate or do not comply with the Security Requirements b If either Discover or Processor determine or reasonably suspect in their reasonable discretion that Merchant or any of Merchant s agent s security procedures including with respect to Discover Transactions are inadequate or otherwise do not comply with the Security Requirements regardless of whether Processor has received certification from Merchant or Merchant agent of compliance with the Security Requirements as described in this Operating Guide Discover and or Processor may in their sole discretion assess noncompliance fees to Merchant for each discrete event of noncompliance including for each failure to comply with a Security Requirement regardless of whether Discover Processor an Issuer or Cardholder has experienced damage as aresult of such noncompliance Additional fees may be assessed during the period that such noncompliance remains uncured Processor may also suspend the ability of Merchant or of any of Merchant s agents to accept or process Discover Transactions upon notice to Merchant until such time as Processor determines that Merchant or the applic
204. rea on the lower front of a Visa Card comprised of the Visa Brand Mark V3 1111 Page 14 MasterCard Merchant Rules Manual The MasterCard Merchant Rules Manual as amended from time to time which is available at the MasterCard web site at the following URL http www mastercard com us wce PDF MasterCard Rules 5 08 pdf MasterCard Standards The bylaws rules and policies and the operating regulations and procedures of MasterCard as may be amended from time to time Member An entity that is a member of Visa U S A or MasterCard Merchant An entity that contracts with an Acquirer to originate Transactions Merchant Bank The Member specified in the Merchant Application Merchant Category Code A code designating the principal trade profession or line of business of in which a Merchant is engaged Merchant Certificate An electronic document used to authenticate a Merchant in an Electronic Commerce Transaction Merchant Direct Access Service A service provided by Visa or its agent that allows a Merchant to directly access the Address Verification Service system via a toll free number and a voice response unit or via a call to a subscribing Issuer Merchant Identification Number MID The identification number assigned to Merchant by Bank for the purposes of participation in Bank s Card program Merchant may be assigned multiple MIDs Merchant Inquiry Service An optional service that provides an automated voice response to Merchant inqu
205. redit Transaction include the following information i Discover Account Number imprinted if possible truncated where required by law ii Cardholder s name as it appears on the Discover Card if present unless prohibited by law iii Discover Card expiration date if present unless prohibited by law iv Merchant s name and location city town and state v date of the Credit Transaction issuance vi total amount of the Credit Transaction including taxes and the Approved Currency used and vii signature of an authorized representative of the Merchant 6 Merchant must ensure that all Credit Slips include the following information i quantity and brief description of merchandise or service returned or refunded ii Discover Account Number imprinted if possible truncated where required by law iii Cardholder s name as it appears on the Discover Card if present unless prohibited by law iv Discover Card expiration date if present unless prohibited by law v Merchant s name and location city town and state vi date of the Credit Transaction issuance and vii total amount of the Credit Transaction including taxes and the Approved Currency used V3 1111 Page 59 7 In Disputes involving returns Processor will honor a Merchant s return policy as long as it complies with all federal state and local laws and is clearly posted or otherwise made known to the Cardholder at the time of the Discover Transaction
206. related to the T amp E Advance Deposit Service ii The Central Reservation Service must not use an agent to perform services on its behalf c A Central Reservation Service Merchant must permit Merchant Bank or its Agent to conduct a physical inspection of its business premises including review of Solicitation or sales materials and i Operating procedures for lodging merchants to be serviced 15 Priority Check out Service a Merchant Participation i A Lodging or Cruise Line Merchant participating in the T amp E Services specified in Section 3 u 10 of this Operating Guide may participate in the Priority Check out Service ii The participating Lodging or Cruise Line Merchant must a accept all Cards in its category of acceptance as specified in Section 3 d 1 a when a Cardholder requests the Priority Check out Service and b provide the Cardholder with a Priority Check out Agreement that contains the information required by the Visa Operating Regulations b Transaction Receipt and Priority Check Out Agreement Completion The Merchant must i Ask the Cardholder to complete sign and return a Priority Check out Agreement The Cardholder must include the mailing address to receive a copy of the hotel or cruise line bill ii Complete a Transaction Receipt including the total obligation amount and the words Priority Check out on the signature line iii Review the completed Priority Check out Agreement and ensure th
207. result of a delayed delivery or split shipment as specified in Section 3 t 1 b The original Authentication Data is valid for up to 90 calendar days from the date it was first received c Recurring Transactions If the Order Form is provided to the Merchant in an electronic format the initial Transaction must be processed with the appropriate Electronic Commerce Transaction indicator values Subsequent Recurring Transactions must be processed as Recurring Transactions as specified in Section 3 u 3 of this Operating Guide d Merchant Outlet Country Data indicating a Merchant Outlet s country must be transmitted in the Clearing Record of an Electronic Commerce Transaction 2 Merchant Web Site Requirements a Web Site Information A Web Site operated by a Merchant Sponsored Merchant or Internet Payment Service Provider must contain all of the following information i A complete description of the goods or services offered ii Merchant s returned merchandise and refund policy as specified in Section 3 s 4 of this Operating Guide iii The Merchant s Customer service contact including Electronic Mail Addresses and or telephone number iv The Transaction currency v Any export or legal restrictions if known vi Merchant s delivery policy vii The address of the Merchant Outlet s Permanent Establishment including the Merchant Outlet country the country code for this country must be transmitted in the Clearing Rec
208. rinted or broadcast materials only to indicate the types of Visa Cards it accepts for payment c Merchant must not indicate or imply that Visa or Merchant Bank endorses any Merchant goods or services ii refer to Visa in stating eligibility for its products services or membership ii use the Visa Owned Marks for any purpose other than those permitted in the Visa U S A Inc Operating Regulations or without written permission from Visa or iv use the signage associated with the Limited Acceptance Category it has selected for any purpose other than those permitted in the Visa U S A Inc Operating Regulations or without written permission from Visa V3 1111 Page 22 8 Affinity Card Program a Visa Owned Marks must be at least equal in size and prominence to the Affinity Partner identification and any other payment system Marks b Merchant must not display a reproduction of an Affinity Card as part of a decal at the Point of Transaction c Visa U S A may require modification of any display of the Affinity Partner s Trade Name or Mark at a Merchant Outlet if the display adversely affects the Visa brand d An Affiliated merchant must display the Visa Owned Marks independently from any identification of the Affinity Partner d Honoring Cards 1 Selection of Payment Systems a A Merchant that wishes to accept Visa Cards must accept any valid Visa Card in its category of acceptance that a Cardholder properly pres
209. rior to initiating a Discover Transaction Merchant may verify the validity of a Discover Card by examining it to confirm that it includes the features described in this section Merchant and the Merchant s employees should become familiar with the features of valid Discover Cards If it is determined that a Discover Card involved in a Discover Transaction did not display one or more of the features of a valid Discover Card the Discover Transaction may be subject to Dispute including Chargeback a All valid standard rectangular plastic Discover Cards bearing the Discover Acceptance Mark include the following common characteristics and distinctive features however please note that valid Discover Cards may not always be rectangular in shape e g Discover 2GOSMCard and certain valid Contactless Payment Devices approved by Discovers for use in accessing Discover Card Accounts e g radio frequency RF enabled Cards key fobs and Mobile Commerce Devices and to conduct Contactless Discover Transactions may not display the features described below i Discover Account Numbers are made up of at least 16 digits displayed on the front of the Discover Card ii Discover Account Numbers are clear and uniform in size and spacing within groupings iii Expiration date if present appears in mm yy format and indicates the last month in which the Discover Card is valid iv Discover Cards issued before October 3 2008 display the Discover three dimen
210. ritten contract between Merchant and its Agent or between the Merchant and the Merchant Servicer that stipulates adherence to the provisions of the Cardholder Information Security Program iv Immediately notify Merchant Bank of any suspected or confirmed loss or theft of material or records that contain account information and both a Demonstrate its ability to prevent future loss or theft of account or Transaction information consistent with the requirements of the Cardholder Information Security Program b Allow Visa U S A or an independent third party acceptable to Visa to verify this ability by conducting a security review at the Merchant s own expense v Visa U S A may inspect a Merchant Outlet or premises of Merchant s agent at any time Visa U S A may assess a reasonable fee for an inspection vi f a Merchant or its agent does not comply with the security requirements or fails to rectify a security issue Visa may a impose restrictions on the Merchant or b permanently prohibit Merchant from participating in Visa Programs vii If undergoing a forensic investigation at the time the Merchant Agreement is signed Merchant must fully cooperate with the investigation until it is completed V3 1111 Page 25 b Merchant Bank may immediately terminate Merchant for any significant circumstances that create harm or loss of goodwill to the Visa system Merchant acknowledges and understands the importance of compliance with Vis
211. roducts or provide the services that are subject of the Transaction 3 Merchant Advertising and Point of Interaction Materials Merchant may use the MasterCard Acceptance Mark in material or images at the physical or electronic point of interaction to indicate acceptance Other acceptance marks symbols logos or combinations thereof may appear in the same material or image with the MasterCard Acceptance Mark if no other acceptance mark symbol or logo is more prominent or likely to cause confusion concerning the acceptance of Cards 4 Local Regional Acceptance Brands The MasterCard Acceptance Mark must be displayed as a free standing mark and as such may not be displayed so as to suggest that it is either a secondary means of payment to a local regional acceptance brand or exclusively linked to a local regional acceptance brand Visual parity must be maintained between the MasterCard Acceptance Mark and any local regional acceptance mark also displayed at a point of interaction or in Merchant advertising 5 Provisions Applicable to Direct Mail Cardholder Solicitation Merchants a Merchant acknowledges that the trademark MasterCard and the corresponding logotype are the property of MasterCard International Incorporated Merchant shall not infringe upon the mark or logo nor otherwise use the mark or logo in such a manner as to create the impression Merchant s goods or services are sponsored produced affiliated with offered or sold
212. rograms and reports to track merchant activity such as but not limited to excessive credits and Chargebacks and increased deposit activity In the event Merchant exceeds the guidelines or submits suspicious transactions as identified by a Card Association or any related program or reports Merchant may be subject to operating procedure requirement modifications ii incremental Chargebacks and or fees iii V3 1111 Page 6 settlement delay or withholding iv termination of this Agreement and or v audit and imposition of fines which fines are subject to reimbursement by Merchant Merchant hereby releases Bank from any and all damages liability costs or expenses that Merchant may incur as a result of Bank s compliance with Card Association directives f Each Chargeback to Merchant is immediately due and payable by Merchant Without limiting Bank s other remedies or Bank s security interest described in the Merchant Agreement Merchant Bank may deduct debit and withhold the amount of a Chargeback or anticipated Chargeback from the Settlement Account Reserve Account or any Merchant account at the Merchant Bank or other property of Merchant held by Bank or any Settlement Account or Reserve Account of a Affiliated merchant Bank will send Chargeback reports to Merchant as debits occur To the extent funds are not available from the previously described accounts of the Merchant or Affiliated merchant Merchant irrevocably authorizes Me
213. ronic Benefit Transfer EBT Transactions are similar to other electronic payment Transactions EBT Transactions are PIN based just like the Online Debit Card Transactions An EBT Card is a magnetic striped Card that electronically delivers Federal and State funded Food Stamps and Cash Benefits to qualified EBT recipients Bank must approve Merchant prior to issuing EBT benefits to qualified recipients 19 Displays and Advertising If Merchant deals with the general public Merchant must display advertising and promotional materials provided by Bank to inform the public which Cards will be honored by Merchant Merchant must display the proprietary names and symbols associated with the Cards Merchant accept only in compliance with Operating Rules and while the Merchant Agreement is in effect or until Bank or an applicable Card Association notifies Merchant to stop using them Merchant will not indicate or suggest in any way that Bank or any Card Association endorses Merchant s products or services Merchant may only display Visa and MasterCard approved decals program marks and other advertising and promotional materials for the Card types Merchant selected on the Application If Merchant has any questions concerning what materials Merchant may display please contact Bank at the number provided in the application for Merchant Card Processing 20 Merchant Identification Number Merchant is responsible for insuring its Merchant Identification Number MI
214. rprint of void on the signature panel becomes visible if erasure of the signature is attempted ix The Discover Account Number or the last four digits of the Discover Account Number displayed on the signature panel on the back of the Discover Card should match the number embossed on the front of the Discover Card and appear in reverse indent printing x The Discover Account Number on the back of the Discover Card is followed by the Card Identification Data CID xi An overprint on the signature panel reads Discover On some cards the overprint may display the name of the Discover Card i e Discover Discover 2GO Discover Platinum xii A Discover Zip Indicator may appear on the back of a standard rectangular plastic Discover Card indicating the Discover Card can be used to conduct Contactless Discover Transactions b In addition to the common security features for all Discover Cards listed above most standard rectangular Debit Cards Credit Cards and Prepaid Identity Known Cards include the following distinctive features V3 1111 Page 68 i The Discover Acceptance Mark or the Discover NOVUS Acceptance Mark will appear on either the front or the back of the Discover Card or on both sides of the Discover Card ii Member Since or Year Joined dates may appear on the front of the Discover Card iii The embossed stylized D appears on the same line as the embossed Member Since date or Year Joine
215. s unless applicable law expressly requires that a Merchant be permitted to impose a tax Any tax amount if allowed must be included in the Transaction amount and not collected separately 6 Enter into Interchange any Transaction Receipt for a Transaction that was previously charged back to Merchant Bank and subsequently returned to Merchant irrespective of Cardholder approval Merchant may pursue payment from the customer outside the Visa system 7 Request or use an Account Number for any purpose other than as payment for its goods or services except to support the Health Care Eligibility Service or the Visa ReadyLink 8 Disburse funds in the form of travelers cheques if the sole purpose is to allow the Cardholder to make a cash purchase of goods or services from that Merchant 9 Disburse funds in the form of cash unless a Merchant is dispensing funds in the form of traveler s cheques Visa TravelMoney Cards or Foreign Currency In this case the Transaction amount is limited to the value of the travelers cheques Visa TravelMoney Card or Foreign Currency plus any commission or fee charged by the Merchant or b Merchant is participating in the Visa Cash Back Service Accept a Visa Card or Visa Electron Card for the purchase of Scrip Accept a Visa Electron Card for a Manual Cash Disbursement 12 Accept a Visa TravelMoney Card for a Manual Cash Disbursement 13 Accept a Card to collect or refinance an existing debt that
216. s initially accepted online iii A Recurring Services Merchant must not a Include partial payment for goods or services purchased in a single Transaction except as specified in Section 3 0 4 of this Operating Guide b Include additional finance charges on a Recurring Transaction c Complete a Recurring Transaction if it receives a Negative Response or a cancellation notice from the Cardholder or Merchant Bank b Notification Requirements 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 The Merchant must inform the Cardholder of his her right to receive at least 10 calendar days prior to each scheduled Transaction Date written notification of the amount and date of the next charge 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 c When the Transaction amount will differ from the most recent charge by more than an agreed upon amount 4 Account Funding Transactions An Account Funding Transaction must a Be processed as a purchase Transaction b Include the transmission of the Electronic Commerce Transactio
217. sa designed to meet the special Card acceptance and operating procedures of different types of Merchants CVV Data The Card Verification Value data encoded in the Track Data including on the Magnetic Stripe of each Discover Card Including CVV Data in an Authorization Request indicates that the Discover Card was present at the time of the Discover Transaction Data Capture Only Capability Point of Transaction Capability where the Transaction Receipt data is electronically captured for Deposit purposes but does not have capability to go Online Data Storage Entity DSE An entity other than a Member Merchant Independent Sales Organization ISO or Third Party Processor TPP that stores transmits and or processes MasterCard account data for or on behalf of a Merchant or Member Service Provider Debit Card Visa branded or MasterCard branded consumer Cards issued by U S Card Issuers or Discover Cards that when presented for payment access debit hold or settle funds from a consumer s demand deposit investment or other asset account Debit MasterCard Card Any MasterCard branded consumer device program or card issued by a Member that when presented for payment in the United States accesses debits holds or settles funds from a consumer s demand deposit or asset account Debit or Debit MasterCard Card shall include consumer signature debit programs stored value programs prepaid cards payroll cards electronic benefi
218. senting a Merchant s or Member s sale of items that are directly convertible to cash such as e Gaming chips e Money orders V3 1111 Page 16 e Deposits e Wire Transfers e Travelers cheques e Visa TravelMoney Cards e Foreign Currency Radio Frequency Identification or RFID A method of storing Cardholder and Discover Card information on a Discover Card or remotely and wirelessly capturing the Cardholder and Discover Card information including Track Data in connection with a Discover Transaction Recurring Payment Plan A Discover term relating to an obligation either of a fixed or variable amount that is paid by a Cardholder with a series of charges to a Discover Card Account over a period time pursuant to an agreement between the Cardholder and the Merchant Recurring Services Merchant A Merchant that provides services of an ongoing nature to a Visa Cardholder and completes Recurring Transactions to bill the Cardholder for these services Recurring Transaction A Transaction for which a Cardholder provides permission in either written or electronic format to a Merchant to periodically charge his her Account Number for recurring goods or services These may include payment of recurring charges such as insurance premiums subscriptions Internet service provider monthly fees membership fees tuition or utility charges Referral Response An Authorization Response where the Merchantis instructed to perform an act e g
219. separately The Merchant must also send the Cardholder a copy of the Transaction Receipt through the postal service or by email if selected by the Cardholder within 3 business days Delayed or Amended Charges For any delayed or amended charges as specified in Section 3 0 5 of this Operating Guide the Merchant must process such charges at the same currency conversion rate as the original Dynamic Currency Conversation Transaction 10 Travel amp Entertainment Services If indicated in the Merchant Application a T amp E Merchant may participate in any of the following Visa T amp E Services a Visa Reservation Service b T amp E Advance Deposit Service and c Priority Check out Service 11 Visa Reservation Service for Lodging a General Requirements i A Lodging Merchant must participate in the Visa Reservation Service if it accepts Visa Cards to guarantee hotel reservations ii A participating Lodging Merchant must accept all Visa Cards in its category of acceptance as specified in Section 3 d 1 a for reservations under the Visa Reservation Service b Billing Information The Lodging Merchant must obtain the Cardholder name Account Number and expiration date displayed on the Card c Accommodation Information i The Lodging Merchant must quote the reserved accommodation rate and the exact name and physical address of the establishment V3 1111 Page 43 ii The Lodging Merchant must inform the
220. serve Account between Merchant and Processor and or comply with additional requirements provided by Processor including fraud prevention procedures 2 Merchant may not give cash refunds for returns of merchandise or services purchased using a Discover Card 3 Merchant is not required to obtain an Authorization to issue Credit Transactions for returns or refunds with respect to merchandise or services purchased using a Discover Card 4 Merchant may issue a refund in the form of a Credit Transaction to a Discover Card Account only with respect to a Discover Transaction originally made with a Discover Card The amount credited to the Discover Card Account for a refund may not exceed the amount of the original Discover Transaction In the case of even exchanges of the same merchandise or services Merchant is not required to transmit any Sales Data to us however the Cardholder must be given a receipt indicating the even exchange For uneven exchanges Merchant shall send Processor Sales Data for the total amount of the Credit Transaction as a result of returned merchandise or unused services including appropriate taxes and new Sales Data for the total amount of the Discover Transaction related to the new merchandise or services purchased and Merchant must provide the Cardholder with a copy of the Transaction Documentation for each of the Discover Transactions 5 Merchant must ensure that all Credit Transaction Receipts created as a result of a C
221. sional hologram bearing a distinct circular shape and images of a globe pierced by an arrow water and stars on a repetitive pattern background the Discover Hologram on the front of the Discover Card The Discover Hologram reflects light and appears to move as the Discover Card is rotated v All Discover Cards display a Magnetic Stripe on the reverse side of the Discover Card Beginning October 3 2008 newly manufactured Discover Cards will feature a three dimensional holographic design that is incorporated into the Magnetic Stripe A series of distinct circular shapes will be visible across the length of the Magnetic Stripe with blue glows between each shape When the Discover Card is rotated the holographic design will reflect light and there will be apparent movement and color switching within the circular shape vi Discover Cards displaying either the Discover Hologram or the holographic Magnetic Stripe are valid after the effective dates indicated above with the Discover Hologram eventually replaced by the holographic Magnetic Stripe for new Discover Cards Although both the Discover Hologram and the holographic Magnetic Stripe will each appear on Discover Cards valid Discover Cards will not display both designs vii Depending on the issuance date of the Discover Card the word DISCOVER or DISCOVER NETWORK will appear in ultraviolet ink on the front of the Discover Card when it is held under an ultraviolet light viii An unde
222. specifically permitted in the Visa U S A Operating Regulations d Merchant must obtain Authorization on the Transaction Date unless the Merchant Transaction is one of the following Lodging Merchant Cruise Line Merchant or a Car Rental Company Transaction as specified in Section 3 1 4 ii Mail Phone Order Merchant or an Electronic Commerce Transaction as specified in Section 3 1 7 ii Automated Fuel Dispenser Transaction as specified in Section 3 I 14 and iv Aggregated Transaction as specified in Section 3 1 8 ji The face to face fraud related Chargeback rate is the number of Fraudulent Transaction Card Present Environment Reason Code 81 Chargebacks received as a percentage of all face to face Transaction Receipts processed The face to face fraud related Chargeback rate is the number of Fraudulent Transaction Card Present Environment Reason Code 81 Chargebacks received as a percentage of all face to face Transaction Receipts processed V3 1111 Page 27 e Merchant must not add an estimated tip amount to the Authorization Request beyond the value of the goods provided or services rendered plus any applicable tax f Merchant must not use multiple Transaction Receipts to avoid making an Authorization Request for a single Transaction g An Authorization Approval Code must appear on the Transaction Receipt 2 Other Required Authorizations a Merchant must obtain Authorization if any of the follow
223. ss and ZIP or postal code to complete a mail order phone order or e commerce Transaction d Electronic Commerce Transactions A Merchant must not refuse to complete an Electronic Commerce Transaction using a MasterCard Card solely because the Cardholder does not have a digital certificate or other secured protocol e Scrip dispensing Terminals MasterCard Cards must not be accepted at Terminals that dispense Scrip f Prohibited Practices 1 Discrimination A Merchant must not engage in any acceptance practice that discriminates against or discourages the use of MasterCard Cards in favor of any other acceptance brand Merchant must honor all valid MasterCard Cards without discrimination when properly presented for payment Merchant must maintain a policy that does not discriminate among customers seeking to make purchases with a MasterCard Card A Merchant that does not deal with the public at large for example a private club is considered to comply with this rule if it honors all valid and properly presented Cards of Cardholders that have purchasing privileges with the Merchant 2 Charges to Cardholders A Merchant must not directly or indirectly require any MasterCard Cardholder to pay a surcharge or any part of any merchant discount or any contemporaneous finance charge in connection with a MasterCard Card Transaction A Merchant may provide a discount to its customers for cash payments A Merchant is permitted to charge a fee such as a
224. ssary to offer Cash Over to Cardholders at that Merchant s Cash Over locations including producing electronic Point of Transaction Terminal prompts to Cardholders b Merchant must deliver a single Authorization Request for the aggregate total of the goods services purchase amount and the Cash Over amount of the Discover Transaction Merchant may not submit separate Authorization Requests for the goods services purchase amount and the Cash Over amount c The Sales Data submitted in connection with a Discover Transaction involving Cash Over must include both the purchase amount and the Cash Over amount of the Discover Transaction Merchant may not submit separate Sales Data for the purchase amount and the Cash Over amount V3 1111 Page 65 d Merchant shall not assess or charge fees of any type or amount on Cash Over transactions None of the fees or charges applicable to Cash Advances shall be applied to Cash Over transactions e No minimum purchase is required for Merchant to issue Cash Over to a Cardholder provided that some portion of the total Discover Transaction amount must be attributable to the purchase of goods or services by the Cardholder Merchant must not issue Cash Over as a stand alone transaction f The maximum amount of cash that Merchant may issue to a Cardholder as Cash Over in connection with a Discover Transaction is 100 00 Merchant may in its discretion establish a lower limit on the amount of Cash Over that s
225. ssuer and c the Authorization Response and Transaction Receipt data are captured electronically Electronic Commerce Merchant A Merchant that conducts the sale of goods or services electronically over the Internet and other networks Electronic Commerce Transaction A Transaction conducted over the Internet or other network using a Cardholder Access Device Electronic Imprint Reading and printing or capturing Card Magnetic Stripe information at a Magnetic Stripe Terminal or Chip information at a Chip Reading Device Electronic Mail Address The electronic mailbox location of a Merchant that conducts the sale of goods or services over the Internet or other network Electronic Transaction Receipt A Transaction Receipt where the terminal generates the required data that is printed on the Transaction Receipt Emergency Cheque Refund An emergency Cash Disbursement or Cheque replacement that an emergency refund location provides to a Visa Cheque purchaser at the direction of the Visa Global Refund Service Enhanced Merchant Level Data Merchant related data provided through Visa U S A or Visa International to an Issuer in connection with a Commercial Visa Product program Enhanced Transaction Level Data Transaction related data provided through Visa U S A or Visa International to an Issuer in connection with a Commercial Visa Product Exception File A VisaNet file of Account Numbers for which the Issuer has predetermined an Authorization Respo
226. st forfeit the advance payment amount d Obtain all of the following Cardholder information 1 Cardholder s Account Number telephone number and mailing address 2 Card expiration date 3 Cardholder name on the Card b Transaction Receipt The Merchant must complete a Transaction Receipt for the amount of the advance payment including all of the following i Words Advance Payment on the signature line ii Cardholder s Account Number telephone number and mailing address iii Card expiration date iv Cardholder name on the Card c Authorization Procedures i The Merchant must follow normal Authorization procedures ii If the Merchant receives an Approval Response the Merchant must a Deposit the Transaction Receipt as specified in Section 3 q of this Operating Guide b Mail a written confirmation to the Cardholder with V3 1111 Page 48 1 Copy of the Transaction Receipt and 2 Cancellation policy including any applicable limitations relating to bad weather cancellations c For an advance payment made less than 72 hours prior to the scheduled commencement of services a written confirmation is required only upon Cardholder request iii f the Merchant receives a Decline Response the Merchant must advise the Cardholder and must not deposit the Transaction Receipt d Cancellation Procedures A Merchant participating in the Advance Payment Service must i Accept all cancellation requests provided that
227. st not deposit a Transaction Receipt until one of the following occurs a the Transaction is completed b the goods or services are shipped or provided except as specified below c the purchased service is performed or d Cardholder consent is obtained for a Recurring Transaction A Merchant or IPSP may deposit a Transaction Receipt before shipping or providing the goods or services only if the Cardholder has agreed to either a a Delayed Delivery Transaction or b an Advance Deposit Transaction 10 Merchant Bank may a immediately terminate an Internet Payment Service Provider for good cause including but not limited to i Fraudulent activity ii Presenting Transaction Receipts that do not result from an act between the Cardholder and the Internet Service Provider Sponsored Merchant laundering iii Entering into a Merchant Agreement under a new name with the intent to circumvent the provisions of the Visa Merchant Chargeback program V3 1111 Page 21 iv Activity that causes Merchant Bank to repeatedly violate the Visa U S A Inc Operating Regulations or v Any other activity that may result in undue economic hardship or damage to the goodwill of the Visa system b Require an Internet Payment Service Provider to immediately terminate a Sponsored Merchant for fraudulent activity or other activities specified in Section 3 b 8 a of this Operating Guide 11 The Internet Payment Service Provider s name may appe
228. stay iv the cancellation policy in its entirety inclusive of the date and time the cancellation privileges expire and v any other pertinent details related to the reserved accommodations V3 1111 Page 63 iii Merchant must provide the Cardholder with written confirmation of a guaranteed reservation The confirmation must contain i Cardholder s name as it appears on the Discover Card if present ii Discover Account Number truncated as and to the extent required by law and Discover Card expiration date iii reservation confirmation number iv anticipated arrival date and length of stay v the cancellation policy in its entirety inclusive of the date and time the cancellation privileges expire and vi any other pertinent details related to the reserved accommodations iv If a Cardholder requests a cancellation in accordance with Merchant s cancellation policy and specified time frames Merchant must provide the Cardholder with a cancellation number and instructions to retain a record of it If a Cardholder requests a written confirmation of the cancellation Merchant must forward this confirmation within three 3 Business Days of the Cardholder s request The cancellation confirmation must contain i Cardholder s reference that charges were placed on the Discover Card if applicable or a guarantee that a no show charge will not be placed on the Discover Card ii Cardholder s name as it appears on the Discover Ca
229. submit Sales Data for each Recurring Transaction in the form and format specified in Section 5 1 f Ifthe Merchant Agreement is terminated Merchant may not submit Sales Data for Recurring Transactions that are due after the effective date of the termination If a Cardholder who agreed to a Recurring Payment Plan ceases to be a Cardholder due to the Cardholder s or the Issuer s termination of the Discover Card Account Merchant may not submit Sales Data for any further installments on that Discover Card Account and Merchant must find an alternate method of collecting the balance owed by the Cardholder 3 Car Rental Industry Discover Transactions may only represent the cost of vehicle rental and insurance Any charges for traffic violations citations accidents or collisions require the Cardholder s signature on separate Transaction Documentation documenting the Discover Transaction 4 Delayed Delivery Sales For delayed delivery sales in which Merchant charges a deposit Merchant may prepare two separate Transaction Receipts or Sales Slips one Transaction Receipt Sales Slip labeled Deposit and one labeled Balance Merchant may not submit Sales Data relating to the Transaction Receipt Sales Slip labeled Balance until the merchandise or service is completely delivered to the Cardholder For delayed delivery sales Merchant must obtain the Deposit Authorization before they submit Sales Data for the Deposit or
230. t f Merchant may obtain and must record Authorizations for additional amounts above any amount already authorized any time on the check in embarkation date or the car rental pick up date or i prior to the check out disembarkation date or rental return date g Merchant must record each additional Authorization date and amount h Merchant must obtain a final Authorization and include the date amount and Authorization Approval Code on the Transaction Receipt if the actual amount exceeds the sum of the authorized amounts plus 15 percent i A final or additional Authorization is not required if the Transaction amount does not exceed the sum of the authorized amounts plus 15 percent of the sum of the authorized amounts j The provisions in Section 3 1 4 and Section 3 I 4 i do not apply if the last Authorization obtained was a Partial Authorization 5 Airline and Railway Transactions When a Cardholder purchases multiple Airline or railway tickets at the same time on the same Account Number Merchant may obtain Authorization for each ticket individually 6 Suspicious Transactions If Merchant is suspicious of a Transaction Merchant must a Contact the Issuer at the telephone number listed in the Association s Interchange Directory using an In or Out WATS line if available or a collect call b Ensure that its employees are familiar with Code 10 procedures available from Visa upon request c Request a Code 1
231. t and Ask the Cardholder to sign the Card before completing the Transaction and compare with the signature s on the Transaction Receipt and or ID If the Cardholder refuses to sign the Card do not accept the Card and refer the Cardholder to the Issuer if he or she has questions 7 Authorizations Once you have checked to verify that the Card is valid the next stage is processing the Transaction The first step in processing is receiving Authorization a All transactions must be authorized Specific Authorization requirements for Visa MasterCard and Discover Transactions are detailed in this Operating Guide Failure to authorize a sales transaction may result in a Chargeback and potentially the termination of your Merchant Agreement b An Authorization only indicates the availability of the Cardholder s credit at the time the Authorization is requested It does not warrant that the person presenting the card is the rightful Cardholder nor is it an unconditional promise or guarantee that you will not receive a Chargeback or debit c Electronic Processing This is the fastest safest and most accurate way to process Card Transactions The Merchant should retain the Card throughout the Authorization process Follow these general procedures Hold the Card in your hand until all steps are completed Swipe the Card s Magnetic Stripe through the Terminal Some Terminals may require you to key enter the last four digits of the Account
232. t mail the cancellation policy including the date and time that cancellation privileges expire to the Cardholder f Cancellation Confirmation i The Lodging Merchant must provide a cancellation code if the reservation is properly cancelled and advise the Cardholder to retain it in case of dispute ii f requested by the Cardholder the Lodging Merchant must mail a confirmation of cancellation The confirmation must include the following a Cardholder name Account Number and Card expiration date displayed on the Card b Cancellation code c Details related to the cancelled reservation g Unclaimed Accommodations i Ifthe Cardholder has not claimed or cancelled the Visa Reservation Service accommodations by the specified time the Lodging Merchant must hold the rooms available according to the reservation until check out time the following day ii The Lodging Merchant may then complete a Transaction Receipt which must contain the following information a Amount of one night s lodging plus applicable tax b Cardholder name displayed on the Card Account Number and Card expiration date c The words No Show on the signature line of the Transaction Receipt iii The Lodging Merchant must obtain an Authorization Approval Code for the No Show Transaction h Alternate Accommodations If the Visa Reservation Service guaranteed accommodations are unavailable the Lodging Merchant must provide the Cardholder with the followin
233. t transfer cards and deferred debit cards that access debit hold or settle funds from the user s demand deposit or asset account less than fourteen days after the date of purchase Debit shall not include any point of sale device that accesses debits hold or settles funds from the user s demand deposit or asset account fourteen or more days after the date of the purchase Debit Network An online data processing system used to support PIN based Card Transactions Decline Response An Authorization Response indicating that the Transaction is declined and the Card is not to be honored Deferred Clearing Transaction A Transaction that is a authorized through a V I P System message and subsequently cleared and settled in a separate message through either BASE II or the Single Message System or b cleared and settled through either BASE II or the Single Message System without Authorization Deferred Payment Transaction A Transaction completed in a Card Absent Environment for which the Cardholder is billed once no more than 90 days after the first shipment of merchandise Delayed Delivery Transaction A single Transaction where a Cardholder completes two separate Transaction Receipts The first Transaction Receipt functions as a deposit such as down payment for goods or services the second is to pay the balance due the Merchant Deposit The submission of a Transaction Receipt by a Merchant to Merchant Bank resulting in a credit or
234. t will be delivered e g Member copy The other copies of the formset should also be appropriately labeled Merchant copy or Cardholder copy Description of goods or services Space for Cardholder signature Space for salesperson s initials or department number Authorization Approval Code The Cardholder copy of a Transaction Receipt must bear the legend Retain this copy for statement verification or similar wording ina 10 point Helvetica type font Table 8 Data Requirements Lodging or Cruise Line Merchants TRANSACTION DATA REQUIREMENTS Imprint Imprint of Merchant name and location Location Code Transaction amount Transaction Date Transaction payment type i e Visa The payment brand used to complete the Transaction must be identified on the Cardholder s copy of the Transaction Receipt Guest check out or disembarkation date Legend identifying its purpose i e Transaction Receipt or sales slip Legend identifying the party to whom it will be delivered e g Member copy The other copies of the formset should also be appropriately labeled Merchant copy or Cardholder copy Description of goods or services Room rate and salesperson s initials or department number Authorization dates amounts and approval codes Space for Cardholder signature The Cardholder copy of a Transaction Receipt must bear the legend Retain this copy for state
235. tandard located at www discovernetwork com and or www pcidatasecuritystandards org as the same may be amended and supplemented from time to time and all related compliance requirements and ii any additional security requirements and all related compliance requirements promulgated by Discover from time to time Self Service Terminal A Cardholder Activated Terminal that accepts payment for goods or services such as Visa Prepaid Cards or video rental has Electronic Capability and does not accept PINs Self Service Terminal Transaction A Transaction that originates at a Self Service Terminal Semi Electronic Capability Point of Transaction Capability where both of the following are true a an Authorization Response when required is obtained Online and b a Transaction Receipt data is captured electronically Service Code A sequence of digits encoded in the Magnetic Stripe and replicated in a Chip that identifies the circumstances under which the Card is valid e g International Transactions Domestic Transactions restricted Card use and defines requirements for processing a Transaction with the Card e g Chip enabled Cardholder Verification Online Authorization Settlement The reporting and transfer of Settlement Amounts owed by one Member to another or to a Card Association as a result of Clearing Settlement Account Checking account or other acceptable deposit account Merchant maintains at a depository institution accepta
236. te or any other matter except as required for acceptance of Discover Transactions and require Processor and or Merchant to submit any responses to Dispute notices directly to Discover 3 Information publicly disclosed by Merchant such as telephone numbers URLs contact information and participation in a program offered by Discover or Issuers in connection with Discover Card Acceptance e g Recurring Payment Plans may be compiled by Discover or third parties in a database designed to encourage and promote such programs c Use and Storage of Confidential Information Merchant is prohibited from using storing or disclosing any confidential information of Discover or any Cardholder or Discover Transaction information other than as necessary to complete a Discover Transaction including any retention or storage of lists of Discover Account Numbers or Discover Transaction information and any use of or access to Cardholders personal information for marketing and or other purposes d Surcharges Merchant may assess a surcharge on a Discover Transaction conducted using a credit Card subject to the restrictions in this Section 5 d Merchant may not levy a fee or other penalty of any kind on a Cardholder using a Discover Card other than a credit Card for a Discover Transaction Furthermore Merchant may not levy a fee or other penalty of any kind on a Cardholder using a credit Card where such fee is not assessed on all other credit cards accepted by th
237. that has been designated for participation in the Visa ReadyLink by the Issuer b A Visa ReadyLink Load Partner may sell Visa Prepaid Cards under a Load Partner Issuer Agreement with a participating Issuer 20 Supermarket Incentive Program a Merchant Requirements A participating Merchant Outlet must V3 1111 Page 49 i Comply with all of the following a Section 3 u 20 of this Operating Guide b Appropriate VisaNet User s Manuals c Required Data for Authorization Requests and Responses d VisaNet Clearing Message Content Standards ii Be assigned a Merchant Category Code of 5411 iii Be a non membership retail store primarily engaged in selling food for home preparation and consumption iv Offer a complete line of food merchandise including self service groceries meat produce and dairy products v Have monthly perishables defined as packaged and in store bakery goods dairy products delicatessen products floral items frozen foods meat and produce sales representing at least 45 percent of total monthly sales vi Accept Visa Cards or Visa Electron Cards for the purchase of all goods and services sold in the store at all check out lanes that accept checks b Authorization Requirements A Supermarket Incentive Program Authorization Request must meet the following Authorization requirements i Floor Limit for Supermarket Incentive Program Transactions is zero ii Authorization Request originates at an
238. the Authorization Request and b the Authorization Request must include the entire complete and unaltered Track Data Sales Data relating to the actual Discover Transaction must be submitted within ten 10 calendar days following the Authorization Request iv ACAT may not be used to conduct Cash Over transactions even if Merchant is otherwise permitted to conduct Cash Over transactions as described in Section 5 p 6 v If Merchant complies with the requirements set forth in this Section 5 p 7 a Merchant will not be subject to Chargeback of Discover Transactions accepted at CATs for Merchant s failure to obtain the Cardholder s signature Merchant may however be subject to Chargeback of Discover Transactions conducted at CATs for other reasons specified in this Operating Guide or the Operating Rules b Non Service Terminals Merchant may use Non Service Terminals to conduct Discover Transactions provided that Merchant complies with the requirements indicated below prior to using any Self Service Terminal to obtain an Authorization for a Discover Transaction i the Discover Transaction at the Non Service Terminal must comply with all of the requirements in this Operating Guide for a Card Present Environment Discover Transaction at a Point of Transaction Terminal that is staffed by an attendant ii the Non Service Terminal must require and Merchant is required to retain a Transaction Receipt documenting the signature of the Cardholder
239. the Transaction Currency accompanied by the words Transaction Currency and the currency symbol next to the amount e Exchange rate used e Any additional mark up commission or fee for the Dynamic Currency Conversion service e A statement in an area easily seen by the Cardholder that The Cardholder was offered a choice of payment in the Merchant s local currency The choice of currency is final Either the currency conversion will not be conducted by Visa or the Merchant or Merchant Bank as applicable is providing the currency conversion service Each of the above data elements must be show separately Table 3 Dynamic Currency Conversion Mail Phone Order or Electronic Commerce Transactions TRANSACTION ENVIRONMENT OPERATING REQUIREMENTS Mail Phone Order or Electronic Disclosure Commerce Before initiating a Dynamic Currency Conversion Transaction in the Mail Phone Order or Electronic Commerce environment the Merchant must notify the Cardholder of the following e Price of the goods or services in the Merchant s local currency Exchange rate including any commission Total price in the Transaction Currency That the Cardholder has a choice of currencies including the Merchant s local currency That the choice of currency is final For an Electronic Commerce Transaction the Cardholder must confirm receipt of the above information by clicking on an accept or other affirmative button to ensure proper disclosure Tr
240. the Transaction Documentation prepared by Merchant must be acceptable to Discover Merchant shall ensure that the Transaction Documentation for each Discover Transaction whether electronically generated or manually printed on paper is legible and contains all of the information required herein 2 For Card Present Environment Discover Transactions that are data captured by electronically reading or scanning a Discover Card using a Point of Transaction Terminal the Transaction Receipt must include all of the following information a copy of which must be provided to the Cardholder i Discover Account Number not necessary to imprint if successfully captured electronically provided that Merchant must only display a truncated Discover Account Number where required by law ii Cardholder s name as it appears on the Discover Card if present unless prohibited by law iii Discover Card expiration date if present unless prohibited by law iv Merchant s name and location city town and state v Amount of cash provided to the Cardholder as Cash Over in addition to the amount of goods or services purchased in the Discover Transaction vi the total amount of the transaction including Cash Over provided sales taxes and or tip indicating the Approved Currency in which Merchant conducted the Discover Transaction vii Cardholder s signature except as otherwise provided in this Operating Guide viii The complete Authorization Approval Code a
241. ther written or electronic must include all of the following information i Merchant Name and Merchant s MID ii Cardholders name and address iii amount of each Recurring Transaction unless amount can vary iv total amount of Recurring Transactions to be billed to Discover Card Account including taxes and tip s if an installment agreement v timing or frequency of payments vi length of time over which the Cardholder permits Merchant to bill Recurring Transactions to the Discover Card Account and vi Discover Account Number and Discover Card expiration date Merchant must retain evidence of the Cardholder s approval of the Recurring Payment Plan for the longer of either i the term of the Recurring Payment Plan or ii the term of the record retention period as described in Section I 6 Upon Processor s request Merchant must provide Processor with evidence of the Cardholder s approval of the Recurring Payment Plan In the event of renewal of a Recurring Payment Plan or the expiration of the term of a Recurring Payment Plan Merchant must obtain additional evidence of the Cardholder s approval of such continued participation in the Recurring Payment Plan d In addition to obtaining an Authorization for each Recurring Transaction as required under Section 5 p 2 b and retaining evidence of the Cardholder s approval of the Recurring Payment Plan as required under Section 5 p 2 c the Sales Data that Merchant submits for Rec
242. tified by certain Merchant Category Codes Health Care Eligibility Service A VisaNet service through which a Health Care Merchant may verify an individual s health care coverage and co payment amount if applicable High Risk Location A Member or Merchant Outlet with abnormally high levels of risk related activity as specified in the Visa Operating Regulations Identity With respect to any Person such Person s i full name including any operating and legal name ii date of birth if the Person is an individual iii current and permanent Address and iv a social security number or taxpayer identification number if the Person is not an individual or fora non U S Person one or more of the following a taxpayer identification number a passport V3 1111 Page 13 number and country of issuance alien identification card number or number and country of issuance of any other government issued document evidencing nationality or residence and bearing a photograph or similar safeguard Imprint Cardholder data transferred from a Card to a Transaction Receipt to complete a Transaction There are two kinds of imprints a Electronic Imprint and b Manual Imprint Inbound Teleservices Audio text services that a Cardholder accesses via fax or telephone for the purchase of services or information including but not limited to pay per call services such as psychic readings sports scores or stock market quotes Installment Billing
243. tion Approval Code Merchant may be obligated to pay higher fees for failure to receive a positive Authorization Response and or the Discover Transaction may be subject to Dispute 5 Electronic Authorization Procedures a The procedures that follow apply to Card Present Environment Discover Transactions at retail locations If Merchant conducts a Discover Transaction using a Point of Transaction Terminal to electronically capture data from the Discover Card the Authorization Request must include the unaltered contents of track 1 or track 2 of the Track Data contained on the Discover Card which includes the Card Verification Value CVV Data or for Contactless Payment Devices DCVV Data If Track Data is not included in the Authorization Request Merchant may be obligated to pay higher fees and or may lose a Dispute of the Discover Transaction If DCVV Data is not included in the Authorization Request submitted for Discover Transaction with a Contactless Payment Device Merchant may receive a declined Authorization Response from the Issuer b In addition the Point of Transaction Terminal used by Merchant to conduct the Discover Transaction must be capable of receiving the full unaltered Authorization Response when sent If a Discover Transaction is conducted using a Point of Transaction Terminal for a Card Present Environment Discover Transaction but the Discover Card cannot be read electronically Merchant must manually input the required Discov
244. tion Request Processor may on behalf of an Issuer occasionally direct Merchant to take and retain a Discover Card from the Discover Card presenter 8 Request for Cancellation of Authorization If a Discover Transaction is cancelled or the amount of the Discover Transaction changes following Merchant s receipt of Authorization for the Discover Transaction Merchant must cancel the Authorization by i processing a cancellation of the corresponding Authorization Request as described below using its Point of Transaction Terminal if the Authorization was obtained using a Point of Transaction Terminal or ii calling Processor to request a cancellation of the corresponding Authorization Request if the Authorization was a voice Authorization An Authorization may be cancelled at any time within eight 8 calendar days of Merchant s receipt of the Authorization but must be cancelled before Sales V3 1111 Page 56 Data relating to the Discover Transaction has been submitted to Processor Once Sales Data relating to the Discover Transaction has been submitted to Processor the Authorization cannot be changed When calling to obtain cancellation of a voice Authorization Merchant must provide the following information to Processor in this order i the complete MID used in the Authorization ii the Discover Account Number iii the original amount of the Authorization in an Approved Currency iv the new amount of the total transaction if any in a
245. tion only for a Deferred Payment Transaction as specified in as specified in Section 3 u 13 of this Operating Guide Store and Forward Transaction An Online Check Card Transaction that has been electronically stored by a Point of Transaction Terminal when the Merchant s or Acquirer s link to the Single Message System is inoperative Stored Transactions must be forwarded as soon as the Single Message System connection is reestablished Supplementary Data Record A record containing additional data relating to a Discover Transaction that may be included by Merchant in Sales Data submitted to Processor for Settlement T amp E An abbreviation for Travel and Entertainment T amp E Advance Deposit Service A service that a Lodging Merchant Cruise Line Merchant or Car Rental Company provides to a Cardholder allowing use of a Visa Card to pay an advance deposit required to reserve accommodations or a vehicle T amp E Advance Deposit Transaction A Transaction that a Lodging Merchant Cruise Line Merchant or Car Rental Company completes as a result of a Cardholder s agreement to use a Visa Card to pay for an advance deposit to reserve accommodations or a vehicle T amp E Chargeback The Chargeback of a T amp E Transaction T amp E Document A photocopy of all documents pertinent to a T amp E Transaction such as a Guest Folio or car rental agreement that a evidences a Cardholder s participation in a lodging cruise line or car rental Tra
246. ts The more information Bank has at the time of the Chargeback the better Bank may dispute the item on Merchant s behalf If Merchant has any questions regarding Retrieval Requests Chargebacks or Representments please call Bank s Chargeback Processing Department f your Merchant ID number begins with numeral 2 call 866 999 4374 f your Merchant ID number begins with numerals 3 or 4 call 800 654 9256 f your Merchant ID number begins with numeral 5 call 800 254 7171 17 Online Debit Card Transactions a Online Debit Card Transactions require customers to enter a PIN at the point of sale terminal and the amount of the Transaction is debited form the customer s checking account Most but not all ATM debit Cards can be accepted at the point of sale at participating locations Examine the back of the Card to determine if the Card participates in a network that Merchant is authorized to accept The Debit Network mark s will be printed on the back of the Debit Network Cards If the Card is valid and issued by a Debit Network and Merchant offers Online Debit Transactions Merchant must follow the following procedures Merchant shall display the logos of the Debit Networks wherever any other Acceptance Mark is displayed to inform the public that Debit Cards will be honored at Merchant s place of business Merchant must honor all valid Debt Network Cards Merchant may accept ATM debit Cards and process Online Debit Card Transactions o
247. uch Merchant will provide as Cash Over to a Cardholder g Cash Over may only be dispensed in Card Present Environment Discover Transactions but not in Card Present Environment Recurring Transactions Cash Over may not be dispensed in connection with Credit Transactions Cash Advances or any Discover Transaction for which Merchant is unable to electronically capture Track Data using the Point of Transaction Terminal h Any Authorization Requests and Sales Data submitted in connection with a Discover Transaction involving Cash Over must comply with all requirements of this Operating Guide and the Operating Rules 7 Automated Terminals or Point of Transaction Terminals a Customer Activated Terminals CATs If Merchant has received Processors prior approval Merchant may use CATs to accept Discover Cards provided that Merchant must comply with the following requirements prior to using any CAT to obtain an Authorization or conduct a Discover Transaction i Merchant must use its MID assigned for use with Merchant s CATs for every Discover Transaction conducted using a CAT Merchant is prohibited from using the MID assigned for use with Merchant s CATs for any Discover Transactions conducted at Merchant not using a CAT ii Merchant may submit an Authorization Request for US 1 00 for a Transaction undertaken using a CAT iii In connection with each Discover Transaction at a CAT a the Discover Card must be present at the time of
248. upplied by Visa n Account Number Verifying Terminal A Merchant that is required to install and authorize Transactions via and Account Number Verifying Terminal must comply with all of the following a When the embossed or printed Account Number does not match the encoded Account Number i Decline the Transaction and attempt to retain the Card by reasonable and peaceful means ii Note the physical description of the Cardholder and iii handle any recovered card as specified in Section 3 n of this Operating Guide b When the encoded Account Number cannot be read from the Magnetic Stripe or Chip follow normal Authorization procedures and complete the approved Transaction using a manual imprinter c When the embossed or printed Account Number is the same as the encoded Account Number follow normal Authorization procedures and d Notify the Acquirer if a Card is retained o Card Recovery 1 Merchant should attempt to recover a Visa Card or Visa Electron Card by reasonable peaceful means and not complete a Transaction for any of the following reasons a the printed four digits below the embossed or printed Account Number do not match the first four digits of the Account Number b Merchant Bank or the Authorizing Member requests its retention or c Merchant has reasonable grounds to believe that the Visa Card or Visa Electron Card is counterfeit fraudulent or stolen 2 A Merchant that recovers a Visa Card or Visa Electron
249. ur times within 16 calendar days from the date of the original Decline Response in an attempt to receive approval if the Decline Response is one of the following Authorization declined Response Code 05 i insufficient funds Response code 51 ii exceeds approval amount limit Response code 61 or iv exceeds withdrawal frequency limit Response code 65 b If an Approval Response is not received within the time frame specified in Section 3 I 11 a of this Operating Guide Merchant must not deposit the Transaction 12 Preauthorized Payment Cancellation Service Decline Response a Merchant must not resubmit an Authorization Request for a Preauthorized Transaction if it had received a Decline Response Reason Code of RO stop payment order b If Merchant receives a Decline Response of R1 revocation of authorization or R3 revocation of all authorizations for a Preauthorized Transaction Merchant must not resubmit the Authorization Request and i not submit an Authorization Request or deposit a Transaction Receipt for any future Transaction unless a instructed otherwise by the Cardholder and b Merchant verifies with the Cardholder that the Cardholder has cancelled the revocation of authorization with the Issuer 13 Deferred Payment Transactions a Merchant may use the Status Check Procedure for a Deferred Payment Transaction to serve only as account verification at the time
250. urring Transactions must comply with Section 5 l as supplemented by the following requirements i Sales Data for each Recurring Transaction must include a general description of the transaction Merchant s name and a toll free customer service number that the Cardholder may call to obtain customer assistance from Merchant or to revoke written approval of the Recurring Payment Plan If this information is provided in a Supplementary Data Record SDR with V3 1111 Page 62 the Sales Data Merchant is not required to send a separate statement of charges to the Cardholder for each amount billed to the Discover Card Account in a Recurring Payment Plan ii Sales Data submitted for each Recurring Transaction billed to a Discover Card Account must receive a positive Authorization Response using the most current expiration date for the Discover Card If a Discover Card expires during the term of a Cardholder s Recurring Payment Plan Merchant must obtain a current Discover Card expiration date from the Cardholder and Merchant must obtain an approved Authorization Response using the new Discover Card expiration date before Merchant submits Sales Data for any installment that comes due after the Discover Card expiration date An approved Authorization Response for a Discover Transaction for an installment under a Recurring Payment Plan is not a guarantee that any future installment billed to a Discover Card will be authorized or paid e Merchant must
251. vices b Health Care Merchant Responsibilities i A Health Care Merchant must a Retain a microfilm copy of the Order Form during the period it is in effect b Provide a copy of the Order Form upon Issuer request for an original Transaction Receipt c Type or print the words PREAUTHORIZED HEALTH CARE on the signature line of the Transaction Receipt ii The Health Care Merchant must not complete a Preauthorized Health Care Transaction after receiving a a cancellation notice from the Cardholder or Merchant Bank or b Decline Response iii Upon receipt of the notice of adjudication from the Cardholder s insurance company the Health Care Merchant must a submit a Transaction Receipt into Interchange within 90 calendar days of the service date and b request Authorization for the amount due 18 Health Care Eligibility Service A Health Care Merchant that participates in the Health Care Eligibility Service must comply with the requirements of the Visa Health Care Eligibility Service Implementation Guide 19 Visa ReadyLink a Load Partner Requirements A Load Partner that participates in the Visa ReadyLink service must i Have a Merchant Agreement for Visa Card acceptance ii Comply with the requirements in both the a Visa International Prepaid Program Guidelines With Additional United States Guidelines and b Visa ReadyLink Service Description and Implementation Guidelines iii Load value to a Visa Prepaid Card
252. writing as an additional Card payment option available to a Merchant Card Association Any entity formed to administer and promote Cards including without limitation MasterCard International Incorporated MasterCard Visa U S A Inc and Visa International collectively Visa and DFS Services LLC Discover In the case of On line Debit Transactions Card Association includes the Debit Networks Card Absent Environment An environment where a Transaction is completed under both of the following conditions a the Cardholder is not present and b the Card is not present Transactions in this environment include Bill Payment Transactions Deferred Payment Transactions Electronic Commerce Transactions Mail Phone Order Transactions Recurring Transactions Telephone Service Transactions Installment Billing Transactions and Dynamic Currency Conversion Transactions in the T amp E Express Service environment Card Identification Data or CID The three digit value that follows the complete or truncated Discover Account Number in the signature panel or in a separate box directly to the right of the signature panel on the back of a Discover Card Card Present Environment An environment that comprises the conditions of either the Face To Face or Cardholder Activated Terminal environment Card Program One or more programs of financial service Cards honored by Merchants and financial institutions for presentment and collection
253. y agreement or otherwise to ensure that its employees or agents with access to the V I P System or BASE II or related documentation i Are advised of the confidential and proprietary nature of these systems and documentation ii Are prohibited from a Providing access to or disclosing these systems and documentation to any third party and b Using these systems and documentation for any purpose not authorized in the Visa Operating Regulations iii Use their best efforts to protect the VisaNet Access Points b A Direct Connect Merchant must not disclose any confidential information of Visa International Visa U S A or their subsidiaries to a nonmember 3 Non Assignable Right A Direct Connect Merchant s right to use the V I P System or BASE II is not assignable and its duties are non delegable without prior written consent from Visa However a Direct Connect Merchant may use a nonmember processing organization that has executed and delivered a VisaNet Letter of Agreement to Visa Merchant must submit a VisaNet Letter Agreement in such cases 4 Restricted Use Each Direct Connect Merchant must restrict its use of the V I P System or BASE II to purposes specifically approved by Visa 5 VisaNet Access Point Modification A Direct Connect Merchant must not make or attempt to make any repair adjustment alteration or modification to a VisaNet Access Point except as expressly authorized by Visa 6 VisaNet Access Point Security
254. y be transacted by Merchant in U S Dollars Prior to conducting a telecommunication Discover Transaction Merchant must contact Processor for approval and further instructions rules and requirements Failure to do so could result in additional charges or termination of the Merchant Agreement 3 Merchant may accept Discover Cards for mail order or telephone order Discover Transactions if Merchant follows the procedures in this Operating Guide for accepting such Discover Transactions a Merchant is prohibited from accepting any mail order or telephone order Discover Transaction except in compliance with this Operating Guide including the following additional requirements i Merchant must obtain Authorization for each mail order or telephone order Discover Transaction in accordance with Section 5 q and in accordance with the CID provisions in Section 5 i ii Merchants must obtain Address Verification for each mail order and telephone order Discover Transaction as described in Section 5 0 4 Merchantis prohibited from completing any mail order or telephone order Discover Transaction where the billing address provided by the customer at the time of the mail order or telephone order Discover Transaction does not match the billing address on file with the Address Verification Service Failure to obtain Address Verification in connection with a mail order or telephone order Discover Transaction may result in a negative Authorization Response pay
255. zation Request for each incremental amount of actual charges that exceed the original estimated Authorization b Each Authorization Request should not include any amounts with respect to which Merchant has previously obtained a positive Authorization Response Each additional Authorization Request should cover a separate portion of the total amount of charges incurred by the Cardholder c If any Authorization Request is declined Merchant must not submit additional Authorization Requests for that Cardholder and any portion of the Cardholder s total charges not receiving a positive Authorization Response that Merchant submits in Sales Data to Processor is subject to Dispute d A final or additional Authorization is not required if the final amount total sum of the Cardholder s charges does not exceed 120 percent of the sum of the previously Authorized charges including the estimated charges upon check in The dates Authorized amounts and their respective Authorization Approval Codes must be individually recorded on the Sales Data and sent as separate Discover Transactions for processing 6 Cash Over If approved by Processor Merchant may issue Cash Over in connection with Discover Transactions provided Merchant complies with this Operating Guide for each Discover Transaction and with the following additional requirements applicable to each Discover Transaction involving Cash Over a Merchant shall make such system changes as are nece
256. zed agent of the Cardholder as proof of delivery Merchant must retain proof of delivery for the record retention period specified in Section 5 1 6 If a Cardholder visits Merchant s retail location to pick up merchandise ordered by mail or telephone Merchant must obtain an imprint of the Discover Card used in the mail order or telephone order as described in Section 5 j 3 as well as the Cardholder s signature In the event of a Dispute by a Cardholder with respect to delivery of merchandise or services ordered by mail or telephone the Discover Transaction is subject to Chargeback if Merchant has not obtained a valid signature from the Cardholder or third party designated by the Cardholder upon the delivery of the merchandise or if the Authorization requirements were not followed 4 For each Card Absent Environment Discover Transaction Merchant must verify the billing address of the Cardholder conducting the Discover Transaction using the electronic Address Verification procedures described in Section 5 0 4 a a Address Verification must be obtained by 11 59 p m Eastern Time on the same day that Merchant sends the Authorization Request regarding the Discover Transaction to Processor regardless of whether the Authorization Request is approved or declined To obtain Address Verification for a Discover Transaction Merchant must comply with the following procedures i use an electronic terminal to request Address Verification or ii if M

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