Card Acceptance Guide Released August 2014 Revision 18 Global Payments Inc. 10 Glenlake Parkway NE North Tower Atlanta, GA 30328 i This Guide contains information protected by copyright. No part of this material may be duplicated, reproduced or disclosed in any form without prior written consent from Global Payments. The information contained in this guide is proprietary and confidential to Global Payments and merchants who have executed an Agreement with Global Payments for card payment services. Global Payments reserves the rights to add, modify, or cancel any and all provisions described in this Guide, as it deems appropriate, with or without advance notice. For the latest version of this guide, please visit our Web site: This guide is part of your Global Payments Inc. (herein No t e after referred to as Global Payments) Merchant Agreement and you must follow the procedures in this Guide to comply with your Agreement. To order a printed copy of the Card Acceptance Guide, fill out the request form at https://www.globalpaymentsinc.com/USA/customerSupport/cagform.html. Global Payments Inc. and Global Payments are registered trademarks of Global Payments Inc. © 2014 Global Payments Inc. and may not be copied, imitated, or used, in whole or in part, without its prior permission. All ALL RIGHTS RESERVED, Printed in the USA other trademarks, product names, and logos identified or mentioned herein are the property of 10 Glenlake Parkway NE, North Tower, Atlanta, GA 30328 their respective owners. ii Important Information Global Payments Merchant Number Global Payments’ Account Representative Telephone Number Global Payments Customer Service Telephone Number Your Bank ID Number Other Important Telephone Numbers Code 10 Authorization Telephone Number 1-800-944-1111 To order additional products and services from Global Payments, call 1-800-929-1245 ext. 3 Visit the Global Payments Web site: To reach VISA® or MasterCard® or American Express®: www.usa.visa.com www.mastercard.com/us www.americanexpress.com Merchants Participating in Global Payments’ American Express Full Acquiring Program click here. https://www.globalpaymentsinc.com/GPDB/AccessDOC.aspx?SubDoc_ID=1383 iii Important Information Using the Card Acceptance Guide The Global Payments Card Acceptance Guide was created to provide merchants a reference tool for important payment processing and industry information. Please refer to the following list of Top Ten Best Practices merchants should be knowledgeable about before accepting card payments. 1. Completing an Electronic Transaction – Page 10 Learn the simple steps to complete a transaction fully and accurately. 2. Managing Authorization Requests – Page 13 Understand card issuer responses on authorization requests. 3. Processing eCommerce Transactions – Pages 17-20 Accept online payments from customers quickly and securely. 4. General Merchant Best Practices – Pages 25-26 Process card payments safely, efficiently and in compliance with all industry standards. 5. Examples of Prohibited Transactions – Pages 27-28 Avoid accepting transactions that will lead to loss or penalties. 6. Providing Refunds – Pages 30-31 Limit the hassle of return or exchange transactions. 7. Chargeback Prevention Best Practices – Page 37 Reduce the risk of receiving a chargeback notification with these precautions. 8. Contacting Customer Care – Page 38 Call Global Payments Customer Care for assistance with general inquiries or issues. 9. Understanding Merchant Statements – Pages 39-40 Accurately read and understand the various components of monthly merchant statements. 10. Preventing Fraud and Spotting Counterfeit Cards – Sections 5 and 6 Protect against fraudulent transactions and avoid accepting counterfeit cards. iv Table of Contents Introduction ......................................................................... 1 Purpose ......................................................................................................1 Global Payments – An Advocate in Payment Processing....................................1 Global Payments’ Role ..................................................................................2 Merchants’ Role ...........................................................................................3 Need Assistance? .........................................................................................3 Section 1: Card-Present Transactions ..................................... 5 Customer/Cardholder ....................................................................................5 Bankcards and Issuers ..................................................................................5 Merchants ...................................................................................................5 How the Transaction Process Works ...............................................................6 Authorization and Electronic Data Capture ......................................................6 Authorization and Capture – PIN Debit ...........................................................7 Settlement ..................................................................................................7 Merchant Funding ........................................................................................8 Electronic Data Capture and IVR Merchants ....................................................8 Retention of Sales Drafts ...............................................................................8 Draft Retrieval Requests ...............................................................................9 Sample Sales Draft Retrieval Request .............................................................9 Merchant Deposits .....................................................................................10 Completing an Electronic Transaction ...........................................................10 Determining Card Validity ...........................................................................10 Visa Cards .................................................................................................10 MasterCard Cards ......................................................................................11 Discover Cards ...........................................................................................12 American Express Cards ..............................................................................12 PayPal In-Store Payment Cards ...................................................................12 Compare Account Numbers .........................................................................12 Available Fraud Controls .............................................................................12 Request Authorization.................................................................................13 Print the Sales Draft ...................................................................................14 v Table of Contents Obtain and Compare Signatures ...................................................................15 Commercial Card Transaction ......................................................................15 Section 2: Card-Not-Present Transactions ............................. 17 Completing Electronic Commerce Transactions ..............................................18 Merchant Web Site and Electronic Transaction Requirements ..........................19 Transaction Receipt Requirements ...............................................................19 Completing Mail Order and Telephone Order (MOTO) Transactions ..................20 Completing Recurring Bill Payment Transactions ...........................................21 What is a Recurring Payment? .....................................................................21 How is a Recurring Payment Different from Other Forms of Payment? ..............21 What should be on an Order Form? ..............................................................21 Other Requirements and Prohibitions for Recurring Transactions ...................22 Best Practices for Use of Convenience Fees ...................................................23 Section 3: Card Acceptance ................................................. 25 Best Practices for Merchant Use ..................................................................25 Point-of-Sale Protection ..............................................................................27 Personal Information ..................................................................................27 Prohibited Transactions ..............................................................................27 Examples of Prohibited Transactions ............................................................28 Accepting Debit and EBT Cards ...................................................................28 EBT Processing ..........................................................................................29 Returns and Exchanges ...............................................................................30 Limited Acceptance Merchants ....................................................................31 Surcharging ...............................................................................................31 Service Fee ...............................................................................................32 Section 4: Operating Guidelines ........................................... 34 Month-End Settlement ...............................................................................34 Draft Laundering or Factoring ......................................................................34 Charge Restrictions ....................................................................................34 Protecting Cardholder Privacy ......................................................................35 Proper Display of Signage ...........................................................................36 Chargebacks ..............................................................................................36 vi Table of Contents Merchant’s Right to a Rebuttal ....................................................................36 Some Do’s and Don’ts of Chargebacks ..........................................................37 Supplies ....................................................................................................38 Customer Care ...........................................................................................38 Understanding the Merchant Statement ........................................................39 Questions About the Merchant Statement .....................................................39 Sample Merchant Statement .......................................................................40 Sample Merchant Statement Details .............................................................41 Section 5: Preventing Fraud ................................................ 42 Take Charge of Fraud .................................................................................42 Skimming .................................................................................................45 Don’t Be Intimidated ..................................................................................45 Deceptive Deliveries ...................................................................................45 The Manual Key-In .....................................................................................46 Borrowed Cards .........................................................................................46 Disposal of Important Information ................................................................46 The POS Device Repair Scam ......................................................................46 Fraudulent Returns .....................................................................................47 International Credit Cards ............................................................................47 The Last Minute Shopper ............................................................................47 Counterfeit Cards .......................................................................................47 Don’t Hesitate! Call In a Code 10 .................................................................48 Defeating Fraud Helps Merchants and Their Customers ..................................48 Payment Card Industry Security Standards Council (PCI SSC) ..........................49 PCI DSS Program for Level 4 Merchants .......................................................49 The Digital Dozen ......................................................................................49 Section 6: Spotting Counterfeit/Altered Cards ........................ 51 Color ........................................................................................................51 Embossing ................................................................................................51 Signature Panel .........................................................................................51 Hologram ..................................................................................................51 MasterCard Formats ...................................................................................52 Visa Card Formats ......................................................................................53 vii Table of Contents Discover Card Formats ................................................................................54 JCB Card Formats ......................................................................................55 American Express Card Formats ...................................................................56 PayPal In-Store Checkout Payment Card Formats ..........................................57 Pick Up Card Procedures ............................................................................58 Exhibits and Addendums ..................................................... 60 Exhibit A: EBT Card Services Agreement ......................................................60 Exhibit B: eCommerce/Internet Services Addendum .......................................68 Exhibit C: Telephone and Mail Order Services Addendum ..............................73 Exhibit D: Lodging Visa/MasterCard Service Addendum ..................................75 Exhibit E: Advance Lodging/Resort Deposit Service Addendum ........................79 Exhibit F: Priority/Express Check-Out Service Addendum ................................82 Glossary of Terms ............................................................... 84 Sponsoring Institutions ........................................................ 93 viii Introduction Introduction Purpose Congratulations! Accepting credit, debit, EBT, gift or commercial cards as a valid form of payment offers a valued service to a merchant’s customers. For today’s merchant, accepting various payment cards has become both easier and at the same time, slightly more complex. Computerized terminals and leading-edge card acceptance devices make transaction processing automatic and seemingly easy, potentially increasing a merchant’s profitability. However, these devices can also create increased probability for processing mistakes and fraudulent transactions resulting in copy requests and chargebacks. Global Payments’ Card Acceptance Guide is a comprehensive manual for all businesses that accept card-present and card-not-present transactions. The purpose of this guide is to: • Provide merchants and their staff the latest information on processing all types of transactions. • Define requirements and best practices for doing business on the Web. • Provide detailed information on the types of w and guidelines to follow to remedy or prevent them. This Guide is part of the Global Payments’ Merchant Agreement. Merchants must follow the procedures in this Guide to comply with their Merchant Agreement. Please keep the Merchant Agreement, other paperwork and telephone numbers associated with the Merchant Agreement in one location. Global Payments wants all of its merchants to be comfortable with the card acceptance program, take advantage of all its features and ensure merchants have the information, card payment options and flexibility needed to grow their businesses. The information in this Guide has been provided to supplement the Merchant Agreement and will assist in the operation of the card acceptance program. Global Payments – An Advocate in Payment Processing Welcome, and thank you for choosing Global Payments for payment processing. Every day, more than one million merchant locations across North America, Europe and Asia rely on Global Payments to process billions of credit, debit, electronic benefits transfer (EBT), commercial card and check transactions through Global Payments’ secure data networks, while also handling merchant settlement and accounting needs and providing point-of-sale (POS) device management. 1 Introduction Global Payments’ Role Global Payments’ most important role is serving as its merchants’ advocate. Global Payments is committed to providing service, value and a comprehensive selection of POS solutions, for fast, reliable processing and settlement. Global Payments will also handle merchant questions and concerns with prompt and courteous service through Global Payments’ “Voice of the Customer” program. In addition, Global Payments offers over four decades of expertise in payment processing and is a full-service Supported Industries: provider of merchant processing services for: Automotive • All major credit cards • Debit cards Direct marketing • EBT cards eCommerce • Commercial cards Education • Gift cards Government • Purchasing cards Healthcare Lodging and Hospitality Global Payments offers a full range of merchant processing services in both traditional transaction Restaurant processing and emerging payment technologies, Retail including: • Card authorization • Draft capture • Chargeback handling • Check verification, guarantee and recovery • Credit card processing • Debit card processing • Electronic benefits transfer processing • Help desk • Merchant accounting • Reconciliation • Settlement • Supplies • Terminal management & support • Web-based transactions • Web-based reporting services 2