16.1 Payment Brand and Other Industry Changes

© 2016 First Data Corporation. All Rights Reserved.

16.1 Payment Brand and Other Industry Changes

Version 2.0

January 26, 2016


2

The enclosed information is a compilation of information from documents received from Visa, MasterCard, American Express, Discover and PIN Debit Networks. This Presentation is provided as a courtesy and is to be used for general information purposes only and as an overview of announced changes, high level system impacts and business impacts. First Data shall not be responsible for any inaccurate or incomplete information. The matters contained herein are subject to change. Individual circumstances may vary and procedures may be amended or supplemented as appropriate. It should not be used as a substitute for reference to the actual card brand/network release technical documents, rules, FDC Business Requirements Document (BRD) and other official documents. This is not intended to be a complete listing of all applicable procedures. No information contained herein alters any existing contractual obligations between First Data and its clients.


PIN Debit Changes

3


NETS Debit Network Fee Changes Effective February 1, 2016, the NETS Debit Network is adding NETS Premier to their POS Interchange Rate Schedule. Third parties using DE126 of the ISO 8583 specifications for interchange identification must be aware of the following updates:

• DE126 Value NETS Interchange Program Descriptors: • U NETS Issuer (unregulated) • R NETS Issuer (regulated) • A NETS Issuer Premier (unregulated)

• NETS Acquirer Switch Fee remains unchanged • Cashback amount of any transaction is included in interchange calculation

4


NETS Debit Network Fee Changes

5

Merchant Category

Regulated (No Change)

Unregulated (No change)

Unregulated Premier (Effective Feb 1, 2016)

Supermarket, Grocery & Wholesale (MCCs 5300, 5411) 0.05% + $0.21 + $0.01 $0.30

1.05% + $0.15 ($0.35 cap)

Standard Retail 0.05% + $0.21 + $0.01 0.80% + $0.15 (no cap) 0.90% + $0.15 (no cap)

Petroleum (MCCs 5541, 5542) 0.05% + $0.21 + $0.01 0.80% + $0.15 ($0.95

cap) 0.75% + $0.17 ($0.95 cap)

Quick Service Restaurants (QSRs) (MCC 5814) 0.05% + $0.21 + $0.01 1.55% + $0.04 (no cap) 0.75% + $0.17 (no cap)

System Impacts • First Data will update applicable tables to support the new interchange category on the

Buypass platform Business Impacts • Clients should be aware of the new interchange category for NETS Debit Network Fee

Schedule Please reference Payments Acceptance Alert #15120359.


PULSE Debit Network Fee Changes

6

2016 Pricing Changes (April 1, 2016)

Grocery, General Retail, Petroleum, and Small Ticket Switch Fees Unregistered Merchants $0.075

PINless Bill Pay Switch Fees. All Merchants 0.10% + $0.025

PINless Bill Pay (Categories 2 and 3) POS Network Security Fee $0.005

Please reference Payments Acceptance Alert #15120365.

Effective April 1, 2016, Pulse Debit Network is changing PIN POS and PINless Bill Pay.

PINless Bill Pay category 3 will be expanded to include Digital Subscribers (MCCs 5968, 4899). No First Data system changes or impact related to the expansion of Category 3.


Introduction of New 2 Series Maestro BIN Range

7

As previously communicated, MasterCard is introducing a new series of International Organization for Standardization (ISO) Bank Identification Numbers (BINs) that begin with a “2” (222100–272099).

• The “2” series BINs will be processed the same as the “51–55” series BINs are today

• New BIN Ranges will apply to MasterCard credit and debit (signature and PIN)

• The new 2 series BINs are valid both as issuing BINs as well as acquiring BINs

• Acquirers will be responsible for tracking the implementation for all merchants


Introduction of New 2 Series MasterCard BIN Range

Effective April 15, 2016, all acquirers must begin providing quarterly Market Readiness Reports to MasterCard.

• Failure to provide Market Readiness Reports may result in noncompliance assessments

Effective June 30, 2017, MasterCard will conduct merchant field testing to validate 2 series BIN acceptance

• Failure to accept a 2 series BIN card may result in noncompliance assessments

System Impacts • First Data debit systems currently support 2 series BIN. This project is expected to

include only regression testing for Maestro.

Business Impacts • Clients should communicate to merchants that they must support the new

MasterCard “2” series BIN Ranges (222100-272099) by October 14, 2016

8


NYCE Chip Card Support

Effective April 15, 2016, Offline PIN Validation and Reversals While limited currently to Interac Chip Cards and any POS gateway transactions routed through the NYCE Network, POS acquirer processors are required to support a new PIN Entry Mode (DE 022, position 3) to accept Offline PIN validation (value of 9) when Chip Cards with this functionality are used to initiate a purchase or return transaction.

• PIN Entry mode (DE 022, position 3) to accept Offline PIN validation (value of 9) is required; POS transaction requests made without the PIN Entry Mode appropriately set will be declined at the NYCE Switch

9


Introduction of New 2 Series MasterCard BIN Range-Reminder

10

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

As previously communicated, MasterCard is introducing a new series of International Organization for Standardization (ISO) Bank Identification Numbers (BINs) that begin with a “2” (222100–272099). • The “2” series BINs will be processed the same as the “51–55”

series BINs are today

• New BIN Ranges will apply to MasterCard credit and debit (signature and PIN)

• The new 2 series BINs are valid both as issuing BINs as well as acquiring BINs


• All merchants must be able to process 2 series BIN transactions by October 14, 2016

• Acquirers will be responsible for tracking the implementation for all merchants • Effective April 15, 2016, all acquirers must begin providing quarterly Market

Readiness Reports to MasterCard • Failure to provide Market Readiness Reports may result in noncompliance assessments

• Effective June 30, 2017, MasterCard will conduct merchant field testing to

validate 2 series BIN acceptance • Failure to accept a 2 series BIN card may result in noncompliance assessments

11




12

Authorization Product Authorization Specs Retrievals / Chargebacks Billing Reporting Clearing Revenue Settlement Specs Other Online Reference

System

North/Nashville Omaha Buypass South Compass

North/PTS Proprietary South/PTS MSIP Memphis OmniPay Omaha

System Impacts • With the April 2016 release all go forward authorization platforms (North, Buypass,

Compass) and settlement platforms (North, South, Memphis, Proprietary, MSIP, OmniPay) and Chargeback rules will be updated to recognize, process, and route transactions with the new 2 series BIN Range to MasterCard

• First Data will update all in-house and merchant specifications including Global BIN File • Omaha platform will be supported with the October 2016 release Business Impacts • Clients should communicate to merchants that they must support the new MasterCard “2”

series BIN Ranges (222100-272099) by October 14, 2016


Support of Revised Standards for Processing Authorizations and Preauthorization-Update

13

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard is introducing authorization processing changes that include: new methods to identify the type of authorization, changes to authorization reversal timeframes, changes to chargeback timeframes and the extension of incremental authorizations for all merchant types. These revisions will help issuers effectively manage cardholders’ open to buy and chargeback protection maximum timeframe limits, based on authorization types. MasterCard is also implementing Data Integrity edits and a Processing Integrity Program to ensure the authorization changes are being adhered to.


Modifications to Rules and Processing Standards: • Reverse authorizations within 24 hours of cancellation or finalization with lower amount

• Excludes automated fuel dispenser and MasterCard Contactless (PayPass) transit aggregated or debt recovery transactions. Does not apply for partial reversals if clearing occurs within 24 hours of the transaction being finalized for a lower amount.

• Merchant must inform cardholder of authorization amount (when done for an estimated amount) • Excludes automated fuel dispenser and MasterCard Contactless (PayPass) transit aggregated or debt

recovery transactions

• Authorization chargeback protection redefined to 30 days for preauthorizations and 7 days for all other authorizations (October 14, 2016)

• Rule change does not apply to MasterCard contactless (PayPass), transit aggregated or transit debt recovery transactions nor to merchant-financed or acquirer-financed installment billing payment transactions properly coded as preauthorization

• 15%/20% extra payment guarantee has been eliminated (except for signature-based gratuities, where the 20 percent tolerance remains applicable)

• Incremental authorizations has been extended to all preauthorization merchant types

14



15


MasterCard Authorization Types – Authorizations must be clearly coded as preauthorization, undefined authorization, or final authorization

Pre-Authorization: Authorization amount greater than zero, final authorization amount is unknown (e.g., hotel, car rental, e-commerce, MO/TO, restaurants). Original authorization amount may be adjusted when the final transaction amount is greater than the original authorized amount. Chargeback protection: 30 days (calculated from latest authorization date) Final Authorization: Authorization amount greater than zero, final transaction amount is known (e.g., card present, retail). The approved amount cannot be cancelled. The transaction final amount must equal the authorized amount. Chargeback protection: 7 days (calculated from authorization date) Undefined Authorization: Authorization amount is greater than zero; the final transaction amount may be different from the authorized amount. The approved amount is not expected to be cancelled after the authorization request is approved in full. Chargeback protection: 7 days (calculated from authorization date) Note: Undefined authorization is not a go-forward authorization type. MasterCard plans to have merchants and acquirers move from undefined to either preauthorization or final authorization types

All Regions (Excludes Europe and Middle East / Africa) Support of Revised Standards for Processing Authorizations Changes not applicable to:

• Automated Fuel Dispenser (AFD) MCC 5542 • Contactless transit aggregated or debit

recovery transactions

• Pre-authorizations or authorizations with expired chargeback protection timeframe

• Private label and non-MasterCard branded transactions • Offline approved transactions


Processing Integrity Fee Program – Pre and Undefined Authorization • Authorizations Not Reversed or Cleared Processing Integrity Fee Program

• Effective April 25, 2016, MasterCard will begin monitoring and reporting for non-Europe region acquirers

• Effective October 14, 2016, Pre authorization , MasterCard will begin passing assessments to non-Europe region acquirers for the processing integrity fee program

• Effective November 06 2016, Undefined Authorization, MasterCard will begin passing assessments to non-Europe region acquirers for the processing integrity fee program

• A new fee of USD $0.045 will be assessed for each approved authorization that is:

• Not fully reversed or cleared within the chargeback protection period associated with type of authorization 30 calendar days of authorization date-preauthorizations 7 calendar days of the authorization date-undefined

• Replaces current U.S. Region Processing Integrity Fees for Late Reversals and No Clearing within 120 days of authorization

• Excludes transactions from Europe region card acceptors, private label and non-MasterCard branded transactions, automated fuel dispenser, transit aggregated and transit debit recovery and offline approved transactions

16



Processing Integrity Fee Program – Final Authorizations • Final Authorizations Not Meeting Necessary Requirement Processing Integrity Fee

Program • Effective April 25, 2016, MasterCard will begin monitoring and reporting for non-Europe region acquirers

• Effective June 04, 2017, MasterCard will begin passing assessments to non-Europe region acquirers for the processing integrity fee program

• A new fee of 25bps, with minimum of USD $0.04, will be assessed for each approved authorization that is:

• Not cleared within 7 calendar days from the authorization date

• Clearing amount differs from the authorized amount

• Clearing currency code differs from the authorized currency code

• Fee will not be applied when this number of final auths failing to meet the specific condition is lower than 1% of the total number of final auths of a given acquirer or ICA

• Excludes private label and non-MasterCard branded transactions

17



New Data Integrity Fee Programs

18

Undefined Authorizations

• Ensures message coding transition from undefined to preauthorization or final authorization occurs

• Excludes transactions from Europe region card acceptors, cross border, offline approved, private label and non-MasterCard branded transactions

• Applies to acquirers with equal or greater than 100,000 domestic transactions per month per ICA

• January 1, 2017 - June 1, 2017 Monitoring & reporting period • June 1, 2017 - More than 50% are coded as

undefined • June 1, 2018 - More than 20% are coded as

undefined • Fee: $2,500 per month per ICA

Preauthorization

• Ensures that not all authorizations are coded as preauthorizations

• Excludes transactions from Europe region card acceptors, offline approved, private label and non-MasterCard branded transactions

• Applies to acquirers with equal or greater than 25% of total authorizations per month per ICA codes as preauthorization

• January 1, 2017 to June 1, 2017 - Monitoring & reporting period

• Fee: $2,500 per month per ICA




19

Authorization Product Authorization Specs Retrievals / Chargebacks Billing Reporting Clearing Revenue Settlement Specs Other Online Reference System

North/Nashville Omaha Buypass South Compass North/PTS Proprietary South/PTS MSIP Memphis OmniPay Omaha

System Impacts Payments Acceptance will create a new Auth Type by MCC logic document:

• This document will show the recommended Auth Type default value based on MCC, Auth Type of space=Undefined auth, 1=Final Auth or 0=Pre Auth

• June 2016, Auth Type = Pre Auth will be updated to the merchant accounts • June 2017, Auth Type = Final Auth will be updated to the merchant accounts


20

System Impacts (cont.) • Add fee codes to pass the new processing fees to the merchant accounts:

• First Data will request and accept the new MasterCard processing integrity detail

reports, beginning October 2016 Business Impacts • Clients should review their merchant accounts to determine the correct authorization

indicator value based on the individual merchant’s processing needs and modify value on merchant manager file if needed

• Clients must add the new few sequence codes to merchant accounts in order to pass the new processing integrity fees


Description MC Billing Event North South Memphis Proprietary OmniPay

MC PROC INTEG PRE AUTH 2PI2005 TBD TBD TBD TBD TBD

MC PROC INTEG UNDEF AUTH 2PI2004 TBD TBD TBD TBD TBD

MC PROC INTEG FINAL AUTH 2P12001A TBD TBD TBD TBD TBD

MC PIF FINAL AUTH MIN 2P12001Q TBD TBD TBD TBD TBD

MC PIF DETAIL REPORT 2RP1961 TBD TBD TBD TBD TBD


Online PIN (Credit) for American Express and Discover

21

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

As part of the 15.2 Fall Release, American Express and Discover introduced new terms for Online PIN (Credit). First Data implemented the terms as outlined by both card brands in projects:

• CON 050259 – North and Buypass and • CON 050260 – Omaha

• Online Personal Identification Number (PIN) validation is a Cardholder Verification Method (CVM) used to authenticate the cardholder at the point of sale (POS)

• This will provide the ability for Issuers and Acquirers to allow the use of an Online PIN as an acceptable CVM to complete a Card Present Transaction

• This method entails sending an online authorization message which carries PIN data entered by the Card member at the POS to the issuer

• Implementation Dates: • North and Buypass - March 8, 2016 • Omaha - July 15, 2016


The below data fields support this new functionality:

22

Data Fields Authorization Message/1100

Authorization Response/1110

Network Management Advice/1804

Network Management Response/ 1814

DF 1 – Bit Map Secondary New New N/A Enabled

DF 24 – Function Code N/A N/A New Value New Value

DF 39 – Action Code N/A New Value N/A New Value

DF 52* – PIN Data Enabled N/A N/A N/A

DF 53* – Security Related Control Information Enabled NA Enabled NA

DF 96 – Key Management Data New New N/A Enabled


*For Discover, Data Fields 52 and 53 are the only required elements


23


North/Nashville Omaha Buypass South

Compass

North/PTS Proprietary South/PTS HDC Direct Memphis Buypass

Direct Omaha

System Impacts • First Data is required to certify host systems to support Online PIN and offline PIN entry

with the authorization request for chip card transactions Business Impacts • Clients should be aware of the availability for Online PIN with Credit for the Spring

Release • Clients are encouraged to support both offline/online PIN for EMV transactions



Transaction Processing and Late Presentment Time Frames

24

Regulatory Change • Effective with the Spring 2016 release, Visa will globally align

chargeback timeframes under reason code 74-Late Presentment, by reducing and consolidating transaction processing timeframes.

• Visa will consolidate the current eight card/transaction types, which have different processing timeframes and vary by region and country, into three transactions type categories:

Visa Business News October 15, 2015

Card/Transaction Types Maximum Processing Time Frames Visa Electron • Within five calendar days of the transaction date

Visa Prepaid Load Service (Visa ReadyLink in the U.S.)

• Within two calendar days of the Visa Prepaid Load Service date

All Other Transactions

• Within eight calendar days of the transaction date • For domestic merchandise returns and credits in the

U.S., within five calendar days of the transaction date • There are no exceptions for Multiple Merchant Outlets

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


25

Reason Code 74 Time Frames • Reason Code 74 chargeback time frames will be aligned with the updated

transaction processing time frames under condition one. Condition one requires that the:

• Transaction was not processed within the required time limit; and • Account Number was not in good standing on the Chargeback Processing

Date • The alignment will simplify the rules. Merchants that are non-compliant and exceed

the time frames may have chargeback impacts.

Note: In the U.S., additional requirements for transaction processing time limits will continue to apply to Custom Payment Service programs.

Terminology

• Visa Rules currently reference processing time frame dates by calendar days, business days and local business days, as well as other exclusions. Effective with the April 2016 Release, transaction date terminology will list processing time frames in calendar days only (with the exception of regulatory requirements, such as domestic AFD transactions in Malaysia).

Transaction Processing and Late Presentment Time Frames


Rules for Unattended Terminals and Visa Easy Payment Service (VEPS)

26

VEPS Updates

Effective with the Spring 2016 release, rules for Visa Easy Payment Service (VEPS) transactions will be simplified.

• For Unattended Cardholder Activated Terminal (UCAT) transactions cardholder verification requirements will be aligned with those for the face-to-face environment

• In all Visa Inc. countries floor limits of zero will apply to UCAT transactions

• Visa Europe will permit contactless-only acceptance in select merchant segments

• VEPS will be open to all UCAT transactions, with the exception of transaction types and merchant category codes (MCCs) currently prohibited by the Visa Rules

Visa Business News November 19, 2015

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


VEPS Updates (cont.) • EMV Chargeback liability shift rules for VEPS and UCAT online authorized chip

transactions will continue to be invalid for Reason Code 81—Fraud: Card-Present Environment

• Visa Europe will increase the VEPS limits for UCAT transactions at transit, parking and tolls MCCs to EUR 50 for chip transactions and EUR 40 for magnetic-stripe transactions

Visa Europe Changes to Support Contactless-Only

• Visa Europe merchants in transit, parking and toll MCCs will be allowed to deploy contactless-only terminals. For cardholders without a contactless payment method, Visa Europe merchants must provide an alternative payment method

Note: This change applies only to transactions acquired in Visa Europe, however Visa Inc. issuers should be

aware of this acceptance scenario for their cardholders traveling in Europe.

27

Rules for Unattended Terminals and Visa Easy Payment Service (VEPS)


28

System Impacts • Dispute systems will be modified to accommodate the updated chargeback

changes Business Impacts • Dispute back office training and procedure guides will include:

• Revisions to Transaction Processing and Late Presentment Timeframes for Reason code 74-Late Presentment

• Changes to Rules for Unattended Terminals and Visa Easy Payment Service (VEPS)

• Clients should review and communicate dispute processing changes to their impacted merchant base

Disputes Impact Summary - Visa


Revised Chargeback Standards-Errors in Processing

Regulatory Change Effective with the Spring 2016 release, MasterCard chargeback reason code 4834 - “Duplicate Processing” has been renamed “Point of Interaction Error”. • The following chargeback reason codes will be collapsed under

reason code 4834- Point of Interaction Error: • 4831- Transaction Amount Differs • 4834- Duplicate Processing • 4842- Late Presentment • 4846- Correct Transaction Currency Code not Provided

• MasterCard recommends issuers use reason code 4834- Point of Interaction Error to address all cardholder processing error disputes

• Although Reason codes 4831- Transaction Amount Differs, 4842- Late Presentment, and 4846- Correct Transaction Currency Code not Provided will remain active, they will eventually be eliminated by MasterCard

Global Operations Bulletin No. 10, 1 October 2015

29

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


Clarifications of Embossed Sales Slips

30

Regulatory Change Effective with the Spring 2016 release, a manually imprinted and signed sales slip may only be used as a final remedy for Reason Code 4837- No Cardholder Authorization when there is no conflicting data between the authorization (DE61- Point-of-Service Data) and settlement (DE22 - Point of Service Entry Mode) values, which identify the transaction as face-to-face.

When conflicting data exists, a manually imprinted and signed sales slip will be considered only as compelling evidence and will no longer be considered a final remedy should progressive cardholder documentation be provided.

Global Operations Bulletin No. 10, 1 October 2015

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


Elimination of Chargeback Reason Code 4802

31

Regulatory Change

MasterCard will eliminate Chargeback Reason Code 4802, “Required Information Illegible or Missing”.

• Reason Code 4802 was established for issuers to use when acquirers fulfillment of a retrieval request was illegible or missing. MasterCard has found that this code provides limited value and has been used improperly, such as when a fraud related code was available or no financial loss occurred.

• The issuer will continue to have compliance rights to dispute the image review decision and for non-fulfillment of retrieval request

Global Security Bulletin No. 11, 16 November 2015

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


Revised Merchant Contact Standards for Chargeback 4853 (Cardholder Dispute)

32

• Regulatory Change MasterCard is revising the merchant contact requirements for chargeback message reason code 4853 (Cardholder Dispute). • Currently under chargeback reason code 4853 the cardholder is

required to contact the merchant in an attempt to resolve the dispute • Effective with the Spring 2016 release, merchant contact will be

optional if the cardholder is a corporate entity and has a contractual relationship with the merchant and the transaction amount is in excess of what is specified in the contract

• When the chargeback amount exceeds the contracted rate, the: • Contract must be provided • Chargeback may only be for the amount of the excessive charge

Global Operations Bulletin No. 12, 1 December 2015

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


Authorization-Related Chargeback Standards 4808 (Request/Required Authorization Not Obtained)

33

Regulatory Change Effective April 16, 2016, MasterCard will rename reason code 4808 – “Request/Required Authorization Not Obtained” to “Authorization-Related Chargeback”. As a reminder:

• Within the Spring 2015 release, MasterCard collapsed chargeback reason codes 4807-’Warning Bulletin’ and 4812-’Account Number Not On File’ with reason code 4808-’Request/Required Authorization Not Obtained’

• Issuers can continue to use 4807, 4808, and 4812 for any chargeback submitted under the new authorization-related message reason codes

• MasterCard will eventually eliminate reason codes 4807 and 4812

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Global Operations Bulletin No. 12, 1 December 2015


34

System Impacts • Modifications to Dispute Systems are not required to support:

• Revised Merchant Contact Standards for Reason Code 4853 (Cardholder Dispute) • Clarifications of Embossed Sales Slips for Reason Code 4837(No Cardholder Authorization)

• Dispute systems will be modified to accommodate the updated chargeback revisions to the: • Elimination of Chargeback Reason Code 4802 • Description of chargeback reason code 4808- “Request/Required Authorization Not Obtained” • Revised Chargeback Standards for renamed reason code 4834 - “Duplicate Processing”

Business Impacts • Dispute back office training and procedure guides will include revisions to chargeback reason code

changes • Clients should review and communicate chargeback changes to their impacted merchant base for

revisions to the:

• Chargeback Standards-Errors in Processing • Merchant Contact Standards for Chargeback 4853 (Cardholder Dispute) • Chargeback reason code/remedy criteria for MasterCard 4837 • Descriptor of chargeback reason code 4808- “Request/Required Authorization Not Obtained” • Elimination of Chargeback Reason Code 4802

Disputes Impact Summary - MasterCard


35

BRD Section(s) A-DISP.1 Tammy Garvin

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Regulatory Changes American Express will expand the reversal conditions associated with the following reason codes: • Goods/Services Not Received or Only Partially Received (C08)

• Evidence to prove that there is a direct connection between the person who received the goods and services and the Card Member (e.g., photographs, emails)

• For internet transactions representing the sale of Internet Electronic Delivery Charge, proof of one (1) of the following must be provided:

• Card Member’s IP address at the time of purchase matches the IP address where the digital goods were downloaded, or

• Card Member’s email address provided at the time of purchase matches the email address used to deliver the digital goods, or

• Program Merchant’s website was accessed by the Card Member for services after the transaction date

Note: In addition to the above, one (1) of the following can also be provided:

• Description of the digital goods, or • Date and time the digital goods were downloaded

Chargeback Processing Updates


Regulatory Changes (Cont’d.) • Goods/Services Not Received or Only Partially Received (C08)

• For Card Not Present Transactions where the goods are picked up at the Program Merchant’s location, the Program Merchant must provide the Card Member signature on the pick-up form as well as additional proof to demonstrate that the identity of the Card Member was verified at the time of pick-up

• Goods/Services Not As Described (C31) • Proof that goods and services matched what was described at the time of purchase (e.g.,

photographs, e-mails) • For goods and services purchased by the Card Member that were received in a damaged or

defective state, the Program Merchant must provide one (1) or more of the following items: • Show that an attempt was made by the Program Merchant to repair or replace damaged or

defective goods or to provide replacement services • If returned, state how the Card Member did not comply with the Program Merchant’s clearly documented

cancellation, return policy or Applicable Law • Show that the Card Member agreed to accept the goods or services “as is”

• Card Not Present (F29)

• Proof that the transaction contains a shipping address that matches a previously used shipping address from an undisputed transaction

36



Regulatory Changes (Cont’d.) Effective with the Spring 2016 Release, American Express will rename chargeback reason code F31-EMV Lost/Stolen to F31-EMV Lost/Stolen/Non-Received to accommodate for fraud on a card not received by the cardholder. • American Express will be adding clarification to chargeback reason codes for transaction types that are not applicable to that specific reason code: • Missing Imprint (F10) - Not applicable to Card Not Present Charges, Digital Wallet

Payments

• Missing Signature (F14) - Not applicable Digital Wallet Application-initiated Transactions, Digital Wallet Contactless-initiated Transactions

• Card Not Present (F29) - Not applicable to Digital Wallet Application-initiated Transactions

• EMV – Counterfeit (F30) - Not applicable to contactless and Digital Wallet Contactless-initiated Transactions

• EMV – Lost/Stolen/Non-Received (F31) - Not applicable to contactless and Digital Wallet Contactless-initialed transactions, and charges that qualify under the No Signature/No PIN Program

37



38

Regulatory Change • American Express will clarify the Excessive Chargeback policy and

criteria in which a fee may be assessed • Seller Dispute Program Notification File is sent to notify Participant of a

Program Merchant's status in the Excessive Chargeback program • A warning notification is sent for those Program Merchants meeting the

following criteria for one (1) month: • Monthly Net Chargeback threshold > 10 and; • Monthly net ROC threshold > 50 and; • Net-Chargeback-to-Net-Transaction ratio > 1%

• An Excessive Chargeback Fee may be assessed for Program Merchants who trend for three (3) consecutive months at which time they will automatically be enrolled in the Excessive Chargeback program

• The fee will not be assessed if threshold criteria is not exceeded within a given month while enrolled in the program

• Program Merchants with positive trend for three (3) consecutive months will be removed from the Excessive Chargeback program

Excessive Chargeback Program

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1


39

System Impacts • Dispute systems will be modified to accommodate revisions to the updated reason

code descriptor for reason code F31-EMV Lost/Stolen • Modifications to Dispute systems are not required to accommodate the clarification of

the Excessive Chargeback Programs

Business Impacts • Disputes back office chargeback training and procedure guides will include revisions to

the updated reason code descriptor for the: • Reason code F31-EMV Lost/Stolen descriptor change • Criteria for the excessive chargeback programs

• Clients should review and communicate the following to their impacted merchant base: • Chargeback reason code descriptor change for F31-EMV Lost/Stolen • Reminder of the criteria for the excessive chargeback programs

Disputes Impact Summary – American Express


New Representment Rights for Fraud Card Not Present Disputes

40

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Regulatory Change Effective October 16, 2015, chargebacks received for reason code UA02 ‘Fraud Card Not Present’ will be considered invalid when the transaction was processed on a mobile device using In-App Authentication. Invalid Disputes for Reason Code UA02

• Discover has introduced a new representment right for Card Not Present Fraud disputes for sales conducted with a Mobile Payment Device if an In-App Authentication is obtained during the time of the sale

Terminology • In-App Authentication is defined as the process that compares the

Cardholder’s credentials obtained from a Mobile Payment Device such as a password, fingerprint identity sensor, etc. If the credentials match the authorized Cardholders’ information within an authentication server, the process is completed and the Cardholder is granted Authorization.


41

System Impacts

• Dispute systems will be modified to accommodate for the clarifications to Discover reason code UA02-Fraud Card Not Present

Business Impacts

• Dispute back office training and procedure guides will include revisions to chargeback reason code changes

• Clients should review and communicate chargeback changes to their impacted merchant base

New Representment Rights for Fraud Card Not Present Disputes


42

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

• With this release, Visa will implement changes to enforce processing of valid authorization code values for payment token transactions

• Issuers must send a valid six-digit authorization code value. The valid

authorization code will be used by merchant/acquirers to properly submit settlement of the original transaction.

• Merchant/Acquirers must include the valid six-digit authorization code

from the authorization response message in the settlement of transactions

• Any authorization request that contains the below invalid authorization code values. Will be subjected to reject message (Invalid value)

• ^^^^^ (all spaces in the last five positions of the field) • X (X in the last position of the field) • 0000^ (four zeros followed by a space in the last five positions of the field) • 0000N (four zeros followed by N in the last five positions of the field) • 0000Y (four zeros followed by Y in the last five positions of the field) • 0000P (four zeros followed by P in the last five positions of the field) • SVC (SVC in the first three positions of the field)

Changes to Enforce Authorization Code Processing for Payment Token Transactions


Changes to Enforce Authorization Code Processing for Payment Token Transactions

43

Authorization Product Authorization Specs Retrievals / Chargebacks Billing Reporting

Clearing Revenue Settlement Specs Other Online Reference System


North/PTS Proprietary South/PTS MSIP

Memphis OmniPay Omaha

System Impacts • No Impact. First Data currently passes the authorization code provided in the

authorization response from issuers. Business Impacts • Clients should advise their merchants to include the valid six-digit authorization code

from the authorization response message in the settlement of transactions


Support of the Form Factor Indicator for Visa PayWave

44

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

The form factor indicator (FFI) defines the type of consumer device used to conduct the transaction. To ensure a more secure platform, greater internal efficiencies, and better interoperability performance of the product, support for the FFI will be mandated for the AP and CEMEA regions. • Effective January 1, 2018, AP and CEMEA acquirers must upgrade

all existing contactless readers to send Tag 9F6E with the form factor indicator (FFI) value

• Contactless readers which support Visa Contactless Payment Specification (VCPS) 2.1 or higher must be upgraded


45




System Impacts • First Data systems currently support tag 9F6E with the form factor indicator (FFI) value.

No system changes are required. Business Impacts • Clients should identify impacted merchants and ensure contactless readers are

upgraded by January 1, 2018

Support of the Form Factor Indicator for Visa PayWave


Changes to Support Interregional App-Based E-Commerce from Secure Elements

46

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Visa will implement changes that will impact the mail/phone/e-commerce and payment indicator (MOTO/ECI) value submitted in interregional application based E-Commerce transactions from secure element (SE) mobile devices. Visa changes to ECI processing: • Change the ECI value submitted in the authorization request

message from 05 (Secure Electronic Commerce transaction) to 07 (Non-authenticated security transaction)

• Change the ECI value submitted in settlement from 05 (Secure Electronic Commerce transaction) to 07 (Non-authenticated security transaction)

• Apply existing reclassification processing rules with new reclassification reason code 9F (ECI reclassification has occurred on a token transaction)

• Transactions submitted with an ECI of an 07 will receive existing interregional fee programs


47

N/A: Not supported • Memphis interchange rates are exclusive of fees and assessments

Visa FPI Rate Visa Fee Program

First Data Platform Specific Codes North South Memphis Proprietary Omaha OmniPay MSIP

901 1.60% + 0.00 Interregional Standard (Non US) 010 901 RLN IV N/A 018 N/A

901 2.05% + 0.00 Interregional Standard (US) 069 90S IRN N/A N/A N/A N/A

947 1.80% + 0.00 Interregional Premium Card Canada Issued (Non US merchant)

083 94C RRC 1E N/A 18B/ 19B N/A

947 1.80% + 0.00 Interregional Premium Card AP Issued (Non US merchant) 087 94A RRP N/A

N/A 18B/ 19B N/A

947 1.80% + 0.00 Interregional Premium Card LAC Issued (Non US merchant) 088 94L N/A N/A

N/A 18B/ 19B N/A

Existing interregional fee programs:




48




947 1.80% + 0.00 Interregional Premium Card CEMEA Issued (Non US merchant)

089 94M RRM N/A N/A 18B/

19B N/A

947 1.80% + 0.00 Interregional Premium Card EU Issued (Non US merchant)

106 94E RRE N/A N/A 18B/

19B N/A

947 2.25% + 0.00 Interregional Premium Card Canada Issued (US merchant)

222 9UC ICR N/A N/A 18B/

19B N/A

947 2.25% + 0.00 Interregional Premium Card AP Issued (US merchant) 223 9UA IAR N/A

N/A 18B/ 19B N/A


Changes to Support Interregional App-Based E-Commerce from Secure Elements Existing interregional fee programs:


49




947 2.25% + 0.00 Interregional Premium Card LAC Issued (US merchant) 224 9UL ILR N/A N/A ZS9/

ZT1 N/A

947 2.25% + 0.00 Interregional Premium Card CEMEA Issued (US merchant) 225 9UM IMR N/A N/A ZS9/

ZT1 N/A

947 2.25% + 0.00 Interregional Premium Card EU Issued (US merchant) 226 9UE IER N/A N/A ZS9/

ZT1 N/A

947 1.80% + 0.00 Interregional Premium Card US Issued (Non US merchant) 229 94U RRU N/A N/A 17B

N/A



50




948 1.97% + 0.00 Super Premium Card AP Issued 364 9SA RUA 7D N/A 18B/

19B N/A

948 1.97% + 0.00 Super Premium Card US Issued 365 9SU N/A N/A

N/A 22B N/A

948 1.97% + 0.00 Super Premium Card CEMEA Issued 366 9SM RUC N/A N/A 18B/

19B N/A

948 1.97% + 0.00 Super Premium Card EU Issued 367 9SE RUE N/A N/A 18B/

19B N/A

948 1.97 + 0.00 Super Premium Card LAC Issued 368 9SL N/A N/A N/A 18B/

19B N/A




51




948 2.42% + 0.00 Interregional Super Premium Card AP Issued (US merchant) 391 9IA SUA N/A N/A 18B/

19B N/A

948 2.42% + 0.00 Interregional Super Premium Card CEMEA Issued (US merchant)

392 9IM SUC N/A N/A 18B/ 19B N/A

948 2.42% + 0.00 Interregional Super Premium Card EU Issued (US merchant) 393 9IE SUE N/A N/A 18B/

19B N/A

948 2.42% + 0.00 Interregional Super Premium Card LAC Issued (US merchant)

394 9IL SUL N/A N/A 18B/ 19B N/A




52




948 1.97% + 0.00 SUPER PREMIUM CAN ISS A45 9SC N/A N/A N/A 18B/ 19B N/A

948 2.42% + 0.00 Super Premium Card Canada Issued(U.S. Acquired) A46 9SD SUT N/A N/A 18B/

19B N/A

905/ 906/ 907

2.00% + 0.00 Interregional Commercial Standard (Non US merchant) 011 905 RLB CI N/A

066/ 068/ 064

N/A

905/ 906/ 907

2.45% + 0.00 Interregional Bus/Sig.Bus/Corp/Purch/Distribution (US merchant)

055 905 IRB CI N/A

066/ 068/ 064

N/A




53

Authorization Product Authorization Specs Retrievals / Chargebacks

Billing Reporting Clearing Revenue Settlement Specs Other

Online Reference System




System Impacts • First Data authorization and clearing systems will be updated to support changes to App-

based E-Commerce transactions from Secure Elements. • First Data impacted specifications will be updated to identify App-Based E-Commerce

transaction from a Secure Element Business Impacts • Clients should be aware of Visa’s changes to Interregional App-Based E-Commerce

transactions from Secure Elements • Direct-send merchants and merchants that don’t currently authorize on a First Data

authorization platform must ensure ECI received in auth is sent in settlement


Changes to Acquirer ISA in the AP Region

54

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Visa will implement changes to the existing Acquirer ISA in the Asia Pacific Region. • Changes will impact all acquirers when the merchant is in the AP

region and the acquirer is not in the AP region effective April 16, 2016. The issuer can be in any region, including the AP region.

• Changes will impact all acquirers when the merchant is in the AP

region and the acquirer is within the AP region effective April 1, 2016. The issuer can be in any region, including the AP region.

• Two new charge types will be created for Acquirer ISA charges in

the AP region for purchase, including account funding transactions (AFTs) when merchant is in the AP region

• Base Purchase Acquirer ISA • Enhanced Purchase Acquirer ISA

• Visa will no longer assess single or multicurrency cross-border purchase Acquirer ISA charges in the AP region when the merchant is in the AP region



55

In support of this change, Visa will add to existing charge types to VSS reports for Acquirer ISA charges when the merchant is in the AP region and the acquirer is not in the AP Region. (Non-AP Acquirers Only)

Status Merchant Location Acquirer ISA Charge Type Description

Existing 0042 AISA CHARGE BASE PUR Acquirer ISA charge for base purchase transactions

Existing 0043 AISA CHARGE ENHANCED PUR Acquirer ISA charge for enhanced purchase transactions

Charge Type Name Description

Base Rate Purchase transaction or AFT where the transaction currency is the same as the merchant’s local currency

Enhanced Rate Purchase transaction or AFT where the transaction currency is not the same as the merchant’s local currency

Visa will add two existing Acquirer ISA charge types for the base rate and enhanced rate.



56

Acquirer ISA Charge Rates for transactions with merchants in the AP region:

Status Merchant Location Acquirer ISA Charge Type Old Rate

New Rate

Removed AP Region Single Currency Purchase 0.8% N/A

Removed AP Region Multicurrency Purchase 0.4% N/A

New AP Region, excluding Japan Base Rate N/A 0.4%

New AP Region, excluding Japan Enhanced Rate N/A 1.0%

New Japan Base Rate N/A 0.2%

New Japan Enhanced Rate N/A 0.8%

Unchanged AP Region Single Currency Cash 0.4% N/A

Unchanged AP Region Multi-Currency Cash 0.4% N/A

Note: There are no changes to Cash Acquirer ISA charge rates.



57

First Data will support changes to the ISA fee by platform as follows:

Platform Summary of changes Effective Date

Modified By

North

• Existing fee sequence code 23Y “VI-AP INTL ASSESSMENT FEE SC” will be renamed to “VI-AP INTL ASSESSMENT BSE” and Rate will be changed to 0.4%

• Existing fee sequence code 23O “VI-AP INTL ASSESSMENT

FEE” will be renamed to “VI-AP INTL ASSESSMENT ENH” and Rate will be changed to 1.0%

April 16, 2016 FD Systems

Omaha • Rate for existing AP ISA Fee will be updated from 0.8% to 0.4% April 16, 2016 FD Systems

Memphis • Does not support. No Changes required N/A N/A

OmniPay • TBD TBD FD Systems



58

First Data will support changes to the ISA fee by platform (Cont.)


Modified By

South

• Existing transaction code B54 “VISA NON-US INTERNATIONAL ASSESSMENT” will be modified on cross-border purchase and ATF transactions to bill 0.4% when transaction meets the following criteria:

• Merchant Country– Guam • Issuer Country– Not the same as merchant country • Transaction Currency– USD

• Existing transaction code B55 “VISA NON-US INTERNATIONAL ASSESSMENT” will be modified on purchase and ATF transactions to bill 1.0% when the transaction meets the following criteria:

• Merchant Country– Guam • Issuer Country– Not the same as merchant country • Transaction Currency- Non-USD




59

First Data will support changes to the ISA fee by platform (Cont.)


Modified By

Proprietary

• Existing MAS Code 1104CS VS-AP INTL SALE SINGLE will be expired

• Existing MAS Code 1104C will be modified with new descriptor VS-

AP INTL SALE ENH and rate will be changed from a bundled rate of ‘ISA 1.0% + IAF 0.20%’ to ‘IAF 0.20%’

• New MAS Code 1104APENH will be created for ISA Charge type

VS-AP INTL SALE ENH with rate of 1.00%

• New MAS Code 1104APBASE will be created for ISA Charge type VS-AP SALE BASE with rate of 0.40%




60


Billing Reporting Clearing Revenue

Settlement Specs Other Online Reference System




System Impacts • First Data platforms will support the changes to the AP Acquirer ISA fee as detailed in

the previous slides Business Impacts • Clients will need to review their merchant base and modify/add the fees as needed • Clients on the North and OmniPay platforms who process with an AP Acquiring BIN may

need to manually adjust merchant accounts on cross-border transactions submitted between April 1, 2016 and April 15, 2016


New Point-of-Sale Cashback Requirements for Canada

61

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Effective with the Spring 2016 release, Visa will require all acquirer and acquirer processors in Canada to support cashback at the point-of-sale for Visa reloadable prepaid cards, chip enabled cards and Visa Debit cards. • Cashback is only available with a purchase • Cashback amount must be less than the total purchase amount • Maximum allowable cashback amount cannot exceed the local

currency equivalent of USD $200.00 • Interchange is not assessed on the cashback option of the

transaction


62







System Impacts • First Data will update systems to process purchase with cashback in Canada. Changes

include, but are not limited to, interchange qualification to exclude cashback amount and updates to back-office reporting to calculate billing for transactions containing cashback amounts.

Business Impacts • Clients should be aware that Purchase with Cashback in Canada will be available to

merchants when customer use eligible Visa reloadable, chip enabled prepaid cards and debit cards

New Point-of-Sale Cashback Requirements for Canada


63

Mandatory

Elective

US International

Authorization Clearing

Back Office

Other

16.1

Visa is modifying the existing interchange structure and rates available to domestic Visa Corporate and Visa Purchasing credit cards in Canada. These changes simplify the interchange rate table by eliminating rate programs that are not widely used for Visa Corporate and Visa Purchasing card payments.

Changes to Canada Commercial Interchange Fee Programs



64

N/A: Not supported

Visa FPI Rate Visa Fee Program First Data Platform Specific Codes

North South Memphis Proprietary Omaha OmniPay MSIP

B05 1.85% + 0.00 Canada Recurring Payment–Corporate Credit, NNSS 526 B05 N/A NK N/A AY7 N/A

B06 1.85% + 0.00 Canada Recurring Payment–Corporate Credit, internationally-settled

526 B06 N/A NL N/A AY7 N/A

E34 1.80% + 0.00 Canada Emerging Segment–Corporate Credit, NNSS

812 824 830

E34 N/A N/A N/A YJ8 N/A

E44 1.80% + 0.00 Canada Emerging Segment–Corporate Credit, internationally-settled

812 824 830

E44 N/A N/A N/A YJ8 N/A

I09 1.80% + 0.00 Canada Corporate Credit, Industry 1, NNSS 702 I09 N/A NK N/A 97E N/A

The following fee programs will be expired:



65

N/A: Not supported



I10 1.80% + 0.00 Canada Corporate Credit, Industry 1, internationally-settled 702 I10 N/A MB N/A 97E N/A

I11 1.85% + 0.00 Canada Corporate Credit, Industry 2, NNSS 703 I11 N/A MJ N/A 02F N/A

I12 1.85% + 0.00 Canada Corporate Credit, Industry 2, internationally-settled 703 I12 N/A ML N/A 02F N/A

P14 1.80% + 0.00 Corporate Credit, Performance Incentive Tier 1, NNSS 730 P14 N/A N/A N/A N/A N/A

P13 1.80% + 0.00 Canada Corporate Credit, Performance Incentive Tier 1, internationally-settled

730 P13 N/A N/A N/A N/A N/A




66

N/A: Not supported



P16 1.85% + 0.00 Canada Corporate Credit, Performance Incentive Tier 2, NNSS


P15 1.85% + 0.00 Canada Corporate Credit, Performance Incentive Tier 2, internationally-settled


B07 1.85% + 0.00 Canada Recurring Payment–Purchasing Credit, NNSS 527 B07 N/A NM N/A AY7 N/A

B08 1.85% + 0.00 Canada Recurring Payment–Purchasing Credit, internationally-settled

B08 E35 N/A NN N/A AY7 N/A

E35 1.80% + 0.00 Canada Emerging Segment–Purchasing Credit, NNSS

813 825 831

E35 N/A N/A N/A YK1 N/A




67

N/A: Not supported



E45 1.80% + 0.00 Canada Emerging Segment–Purchasing Credit, internationally-settled

813 825 831

E45 N/A N/A N/A YK1 N/A

I13 1.80% + 0.00 Canada Purchasing Credit, Industry 1, NNSS 704 I13 N/A MF N/A 97E N/A

I14 1.80% + 0.00 Canada Purchasing Credit, Industry 1, internationally-settled

704 I14 N/A MG N/A 97E N/A

I15 1.85% + 0.00 Canada Purchasing Credit, Industry 2, NNSS 705 I15 N/A MM N/A 02F N/A

I16 1.85% + 0.00 Canada Purchasing Credit, Industry 2, internationally-settled

705 I16 N/A MN N/A 02F N/A




68

N/A: Not supported



P32 1.80% + 0.00 Canada Purchasing Credit, Performance Incentive Tier 1, NNSS


P31 1.80% + 0.00 Purchasing Credit, Performance Incentive Tier 1, internationally-settled


P34 1.85% + 0.00 Purchasing Credit, Performance Incentive Tier 2, NNSS 733 P34 N/A N/A N/A N/A N/A

P33 1.85% + 0.00 Purchasing Credit, Performance Incentive Tier 2, internationally-settled





69

Visa FPI

Existing Visa Fee Program North Plan Code

Rate Visa FPI

Visa Fee Program Shifts

North Plan Code

Rate

B05 Recurring Payment–Corporate Credit, NNSS 526 1.85% S05 Standard—Corporate card, NNSS 377 2.00%

B06 Recurring Payment– Corporate Credit, internationally-settled 526 1.85% S06 Standard—Corporate card, NNSS 377 2.00%

E34 Emerging Segment–Corporate Credit, NNSS

812 824 830

1.80% S05 or E05

Standard—Corporate card, NNSS or Electronic—Corporate Credit, NNSS

377 or 512

2.00% or 1.90%

E44 Emerging Segment–Corporate Credit, internationally-settled

812 824 830

1.80% S06 or E06

Standard—Corporate card, Int’l Settlement Service or Electronic—Corporate Credit, internationally-settled

377 or 512

2.00% or 1.90%

Transactions may qualify at the existing programs found on the table below:



70

Visa FPI


Rate Visa FPI


North Plan Code

Rate

I09 Corporate Credit, Industry 1, NNSS

702 1.80% S05 or E05


377 or 512

2.00% or 1.90%

I10 Corporate Credit, Industry 1, internationally-settled

702 1.80% S06 or E06


377 or 512

2.00% or 1.90%

I11 Corporate Credit, Industry 2, NNSS

703 1.85% S05 or E05


377 or 512

2.00% or 1.90%

I12 Corporate Credit, Industry 2, internationally-settled

703 1.85% S06 or E06


377 or 512

2.00% or 1.90%




71

Visa FPI


Rate Visa FPI


North Plan Code

Rate

P14 Corporate Credit, Performance Incentive Tier 1, NNSS

730 1.80% S05 or E05


377 or 512

2.00% or 1.90%

P13 Corporate Credit, Performance Incentive Tier 1, internationally-settled

730 1.80% S06 or E06


377 or 512

2.00% or 1.90%

P16 Corporate Credit, Performance Incentive Tier 2, NNSS

731 1.85% S05 or E05


377 or 512

2.00% or 1.90%

P15 Corporate Credit, Performance Incentive Tier 2, internationally-settled

731 1.85% S06 or E06


377 or 512

2.00% or 1.90%




72

Visa FPI


Rate Visa FPI


North Plan Code

Rate

B07 Recurring Payment–Purchasing Credit, NNSS

527 1.85% S07 Standard—Purchasing card, NNSS

380 2.00%

B08 Recurring Payment–Purchasing Credit, internationally-settled

527 1.85% S08 Standard—Purchasing card, Int’l Settlement Service

380 2.00%

E35 Emerging Segment–Purchasing Credit, NNSS

813 825 831

1.80% S07 or E07

Standard—Purchasing card, NNSS or Electronic—Purchasing Credit, NNSS

380 or 513

2.00% or 1.90%

E45 Emerging Segment–Purchasing Credit, internationally-settled

813 825 831

1.80% S08 or E08

Standard—Purchasing card, Int’l Settlement Service or Electronic—Purchasing Credit, internationally-settled

380 or 513

2.00% or 1.90%




73

Visa FPI


Rate Visa FPI


North Plan Code

Rate

I13 Purchasing Credit, Industry 1, NNSS

704 1.80% S07 or E07


380 or 513

2.00% or 1.90%

I14 Purchasing Credit, Industry 1, internationally-settled

704 1.80% S08 or E08


380 or 513

2.00% or 1.90%

I15 Purchasing Credit, Industry 2, NNSS

705 1.85% S07 or E07


380 or 513

2.00% or 1.90%

I16 Purchasing Credit, Industry 2, internationally-settled

705 1.85% S08 or E08


380 or 513

2.00% or 1.90%




74

Visa FPI


Rate Visa FPI


North Plan Code

Rate

P32 Purchasing Credit, Performance Incentive Tier 1, NNSS

732 1.80% S07 or E07


380 or 513

2.00% or 1.90%

P31 Purchasing Credit, Performance Incentive Tier 1, internationally-settled

732 1.80% S08 or E08


380 or 513

2.00% or 1.90%

P34 Purchasing Credit, Performance Incentive Tier 2, NNSS

733 1.85% S07 or E07


380 or 513

2.00% or 1.90%

P33 Purchasing Credit, Performance Incentive Tier 2, internationally-settled

733 1.85% S08 or E08


380 or 513

2.00% or 1.90%




75






System Impacts • First Data platforms will be updated to expire the eliminated fee programs and qualify

transactions at existing fee programs as detailed in the previous tables Business Impacts • Clients should be aware of the removal of these programs for Canada and notify their

impacted merchants


New BASE II System File Fee and BASE II Acquirer Credit Voucher Fee

76

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Visa will implement two fees effective April 1, 2016

• Currently, Visa assesses a fee of USD $0.0025 per kilobyte in a transaction, file and/or report transmitted through the BASE II settlement system. This fee is charged to CIB (Center Identification Block) owners.

• The kilobyte fee will be replaced with a USD $0.0018 fee for each BASE II financial transaction. This BASE II System File Transmission Fee will continue to be assessed to the CIB owner and applies to the following transactions:

• (TC 05) Sales Draft—Original purchase • (TC 06) Credit Voucher—Original credit voucher • (TC 07) Cash Disbursement—Original cash disbursement • (TC 15) Chargeback, Sales Draft • (TC 16) Chargeback, Credit Voucher • (TC 17) Chargeback, Cash Disbursement • (TC 25) Reversal, Sales Draft • (TC 26) Reversal, Credit Voucher • (TC 27) Reversal, Cash Disbursement • (TC 35) Chargeback Reversal of Sales Draft • (TC 36) Chargeback Reversal of Credit Voucher • (TC 37) Chargeback Reversal of Cash Disbursement



77

• The following fee sequence codes are currently utilized to bill the existing kilobyte fee:

• 277 - Visa Kilobyte Fee (South tran code 451) • 447 - Visa Kilobyte Transaction Fee

• Visa will charge a new fee on all credit voucher transactions (TC06). This fee

will also assessed to CIB owners.

• The new Acquirer BASE II Credit Voucher fee will be applied as follows: • $0.0195 per credit voucher for credit transactions • $0.0155 per credit voucher for debit and prepaid transactions



78

First Data will support the new fees as follows: Platform Summary of changes Modified by

North

• New fee sequence code 47N will be created for the BASE II System File Fee with descriptor “VI BASE II System File Fee”

• New fee sequence codes will be created for the Acquirer BASE II Credit

Voucher fee as follows: • 47O – “VI BASE II CR Voucher Fee DB/PP” • 47P – “VI BASE II CR Voucher Fee CR”

Business Channels

South

• New tran code “TBD” will be created for the BASE II System File Fee with descriptor “VI BASE II System File Fee”

• New tran codes will be created for the Acquirer BASE II Credit Voucher

fee as follows: • TBD – “VI BASE II CR Voucher Fee DB/PP” • TBD – “VI BASE II CR Voucher Fee CR”

Business Channels

Proprietary

• New fee TID 809 will be created in support of the new BASE II System File Fee

• New fee TID 810 will be created in support of the Acquirer BASE II Credit Voucher Fee

FD Systems

Memphis • Memphis rate table will be updated to support the new fees FD Systems

Omaha • TBD TBD

Omnipay • TBD

TBD



79







System Impacts • First Data platforms will support the new Visa BASE II fees as detailed in the previous

slides Business Impacts • Clients should review their merchant base and ensure fee sequence codes and tran

codes are added/removed as needed


Visa Token Service Commercial Transaction Processing for Acquirers

80

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Visa is implementing a change to allow commercial transactions to be processed with the Visa Token Service. • Visa token processing that currently applies to Visa consumer

transactions will be enhanced to support payment tokens for Visa commercial transactions

• This change will allow commercial card cardholders to make tokenized payments

Visa’s introduction of Commercial cards to token processing will have little impact to merchant processing. • Commercial cards are not excluded from token processing by First

Data platforms today


81




System Impacts • No impact. Systems do not exclude commercial cards from token processing today. Business Impacts • Clients should be aware of the expansion of token processing to include commercial

cards

Visa Token Service Commercial Transaction Processing for Acquirers


MasterCard Digital Enablement Card On File Service Security Enhancements

82

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard is introducing a new cryptogram to improve security of E-Commerce Card On File token transactions. • Card on File Token Requestor cryptogram will be used to validate the

initiator of a Card on File token transaction • Cryptogram will be available for use by participating Token

Requestors and will increase the level of assurance that Card on File transactions originate from an authentic Token Requestor


• Card on File Token Requestor Cryptogram will be generated by the Token Requestor using keys provided directly to them by MasterCard • Token Requestors can be merchants or wallet service providers • When the merchant is the Token Requestor, they will generate the cryptogram and

submit it in the authorization request • When the wallet service provider is the Token Requestor, the wallet generates the

cryptogram and send it to the merchant, who will forward the cryptogram in the authorization request

• MasterCard will provide data regarding the cryptogram in the authorization response, to include:

• Confirmation that MasterCard validated the cryptogram • Results of the validation

83



84


Billing Reporting Clearing Revenue Settlement Specs Other Online Reference System



System Impacts • First Data systems will make appropriate changes to the authorization request and

responses messages in support of the new Card on File Token Requestor Cryptogram and validation responses

Business Impacts • Clients interested in participating in Card on File token processing should be aware of

the new cryptogram • Participating Clients should prepare to support specification updates related to this

change



Modifications to Asia Pacific Intraregional Interchange Structure

85

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard will modify the Asia Pacific region intraregional structure in order to align all Debit and Credit Gold products under the same interchange program. The Asia Pacific region intraregional interchange structure categorizes Debit MasterCard Gold transactions under an intraregional consumer standard interchange program. • MasterCard will modify the Asia/Pacific region intraregional

interchange structure by assigning the Gold Debit MasterCard Card product (MDG) to the intraregional interchange program IRD GS (Intraregional Consumer Gold)

• MasterCard will remove the Gold Debit MasterCard product (MDG)

from the following interchange programs: • IRD 24 -Intraregional Consumer Merchant UCAF • IRD 33 Intraregional Consumer Issuer Chip • IRD 73, 83 Intraregional Consumer Acquirer Chip • IRD 75, 85, 95 Intraregional Consumer Standard • IRD 79 Intraregional Consumer Full UCAF



86

N/A: Not supported

MC IRD Change Type MasterCard Fee Program First Data Platform Specific Codes

North South Proprietary Omaha OmniPay

GS Add MDG Intraregional Consumer Gold AFD A42 AG1 N/A 363 N/A

GS Add MDG Intraregional Consumer Gold MOTO A43 AG2 N/A 363 N/A BT4

GS Add MDG Intraregional Consumer Gold Other A44 AG3 BE 362 BS9

24 Remove MDG Intraregional Consumer Merchant UCAF MOTO A31 A2F N/A 65 N/A

24 Remove MDG Intraregional Consumer Merchant UCAF Other A32 A2O BP 90 BS7

33 Remove MDG Intraregional Consumer Issuer Chip A33 A3I N/A N/A A01

75 Remove MDG Intraregional Consumer Standard AFD A36 A8B N/A 365 N/A

The following interchange programs will be updated to support the alignment of Debit and Credit Gold product:



87

N/A: Not supported

MC IRD Change Type MasterCard Fee Program First Data Platform Specific Codes


75 Remove MDG Intraregional Consumer Standard MOTO A37 A8C N/A 365 N/A BT3

75 Remove MDG Intraregional Consumer Standard Other A38 A8D BL 364 BS6

34 Remove MDG Intraregional Consumer Acquirer Chip A34 A3C N/A N/A AG1

73 Remove MDG AP Intraregional Consumer Electronic A35 A8A BK 006/366 BS5

79 Remove MDG AP Intraregional Consumer Full UCAF MOTO

A40 A7L N/A 066 N/A

79 Remove MDG AP Intraregional Consumer Full UCAF Other

A41 A7M BQ 91/155 BS8

The following interchange programs will be updated to support the alignment of Debit and Credit Gold product:

N/A: Not supported


Modifications to Asia Pacific Intraregional Interchange Structure In conjunction with the April 16, 2016 release, MasterCard will revise intraregional cross-border transaction interchange programs initiated with MasterCard consumer or commercial cards issued in the Asia Pacific region and acquired in a different country in the Asia Pacific region or domestic transactions of countries in the AP that do not have an Intracountry interchange program.

88

MasterCard AP Interchange Bulletin No. 2, December 4, 2015



89

N/A: Not supported

MC IRD

Old Rate

New Rate MasterCard Fee Program

First Data Platform Specific Codes


WS 1.98% 2.02% AP Intraregional Consumer Super Premium AF A57 AW1 BG 360 N/A

WS 1.98% 2.02% AP Intraregional Consumer Super Premium MOTO A58 AW2 BG 360 N/A

WS 1.98% 2.02% AP Intraregional Consumer Super Premium Other A59 AW3 BG 360 BT1

47 1.85% 2.00% AP Intraregional Commercial Electronic Standard N/A N/A N/A N/A BT5

61 1.85% 2.00% AP Intraregional Commercial Standard A60 A6Q N/A N/A BT6

63 1.98% 2.00% AP Intraregional Commercial Purchase Standard A62 A6S N/A N/A BT7

65 1.98% 2.02% AP Intraregional Commercial Super Premium A63 A6T BH 361 BT2

The following interchange programs will be updated to support revised rates:



90







System Impacts • All impacted First Data systems will be updated with the appropriate processing rules to

allow the qualification of Debit MasterCard Gold consumer cards at the appropriate Consumer Gold intraregional interchange program and rates

• First Data systems will be updated to support the revised interchange program rates impacting IRDs: GS, 75, WS, 47, 61, 63, and 65

Business Impacts • Clients should be aware of the product and rate changes impacting Asia Pacific

intraregional interchange programs and communicate to merchants as needed


MasterCard Extends Commercial Products to Europe Region

91

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard is introducing four commercial product codes in the EU region. Product Codes MBP, BPD, MPB and MRL will be added to Europe, Europe intercountry, and Europe intraregional. • Acquirers globally must be prepared to recognize the new product

codes

Product Code Description MBP MasterCard Corporate Prepaid

BPD Business Premium Debit

MPB MasterCard Preferred Business Card

MRL MasterCard Prepaid Business Preferred


The following IRD will be modified for the indicated issuer/acquirer combination: • IRD 61 – Interregional Commercial Standard

92

Acquirer Region Issuer Region Card Program ID GCMS Product ID Asia/Pacific Europe MCC MPB, MRL

LAC DMC BPD, MBP

MEA

Canada

U.S.



The following IRDs will be modified for the indicated issuer/acquirer combination: • IRD 50, 53 - Chip • IRD 84, 88 - Electronic • IRD PW - MasterPass Wallet • IRD 24 - Merchant UCAF • IRD 79 - Full UCAF • IRD 75, 85 - Base • IRD P2 - PayPass (Western Region only)

93

Acquirer Region Issuer Region Card Program ID GCMS Product ID Europe Europe MCC MPB, MRL

DMC BPD, MBP



MC IRD Rate MasterCard Fee Program



61 2.85% Commercial Interregional Business (US merchant) 176 F61 I61 IB 000 E38 N/A

61 2.85% Commercial Interregional Business (US merchant /US territory issued) 176 N/A F61 N/A N/A N/A N/A

61 2.85% Commercial Interregional Business Refund (US acquired) 176 N/A R61 N/A N/A N/A N/A

61 2.00% Commercial Interregional (Non US merchant) 362 H61 Q61 IB N/A E38 N/A

61 2.00% Commercial Interregional Refund (Non US merchant) 362 N/A U61 N/A N/A N/A N/A

94

MasterCard Extends Commercial Products to Europe Region The following programs have been updated to support the four commercial product codes:





50, 53 N/A EU Corporate, Chip Card N/A N/A N/A N/A N/A TBD 87-020, 87-024, 87-030

50, 53 N/A EU Business Chip Card N/A N/A N/A N/A N/A TBD 87-044, 87-052, 87-037

84, 88 N/A EU Corporate Enhanced Electronic N/A N/A N/A N/A N/A TBD 87-008, 87-005

84, 88 N/A EU Business Enhanced Electronic N/A N/A N/A N/A N/A TBD 87-036, 87-034

95






84, 88 N/A UK Corporate Enhanced Electronic N/A N/A N/A N/A N/A TBD 87-094, 87-089

84, 88 N/A UK Business Enhanced Electronic N/A N/A N/A N/A N/A TBD 87-153

24 N/A EU Corporate Merchant UCAF N/A N/A N/A N/A N/A TBD 87-054, 87-056

24 N/A EU Business Merchant UCAF N/A N/A N/A N/A N/A TBD 87-058, 87-060

24 N/A UK Corporate Merchant UCAF N/A N/A N/A N/A N/A TBD 87-091, 87-095

24 N/A UK Business Merchant UCAF N/A N/A N/A N/A N/A TBD 87-154

96






79 N/A EU Corporate Full UCAF N/A N/A N/A N/A N/A TBD 87-055, 87-057

79 N/A EU Business Full UCAF N/A N/A N/A N/A N/A TBD 87-059, 87-061

79 N/A UK Corporate Full UCAF N/A N/A N/A N/A N/A TBD 87-092, 87-096

79 N/A UK Business Full UCAF N/A N/A N/A N/A N/A TBD 87-155

PW N/A EU Corporate Wallet N/A N/A N/A N/A N/A TBD 87-063

PW N/A EU Business Wallet N/A N/A N/A N/A N/A TBD 87-064

PW N/A UK Corporate Wallet N/A N/A N/A N/A N/A TBD 87-011

97






P2 N/A UK Corporate Chip Contactless N/A N/A N/A N/A N/A TBD 87-010

P2 N/A UK Business Chip Contactless N/A N/A N/A N/A N/A TBD 87-150

85, 75 N/A EU Corporate Base N/A N/A N/A N/A N/A TBD 87-016, 87-031, 87-007

85, 75 N/A EU Business Base N/A N/A N/A N/A N/A TBD 87-040, 87-038, 87-035

98






85, 75 UK Corporate Base N/A N/A N/A N/A N/A TBD 87-099, 87-012, 87-097

85, 75 UK Business Base N/A N/A N/A N/A N/A TBD 87-156, 87-157

99


Note: MBP, BPD, MPB and MRL are also being added to Manual Cash and Charity for the MSIP Platform. The Product/plan codes are 87-027, 87-075, 87-139 and 87-009. N/A: Not supported • Memphis interchange rates are exclusive of fees and assessments

The following programs have been updated to support the four commercial product codes:


100





System Impacts • First Data systems will be updated to support Product Codes MBP, BPD, MPB and MRL

for the interchange programs listed Business Impacts • Clients should be aware that Product codes MBP, BPD, MPB and MRL will be applied to

the existing interchange programs



Introduction of MasterPass Wallet-Initiated Interchange Programs

101

Mandatory

Elective

US International


Back Office

Other

16.1

MasterCard is introducing four new IRDs to support MasterPass Wallet-initiated intracountry consumer credit and debit transactions in the Canada region. • Canada Intracountry Consumer Base MasterPass (Credit) • Canada Intracountry Consumer High Spend MasterPass (Credit) • Canada Intracountry Consumer Premium High Spend MasterPass (Credit) • Canada Intracountry MasterPass (Debit)


• MasterPass transactions will be identified by the presence of the Wallet Identifier field containing the following values: • 101 - MasterPass Remote • 102 - MasterPass Remote Near Field Communications (NFC) payment

• Additionally MasterPass transactions must be electronic commerce

102



103


MC IRD Rate MasterCard Fee

Program First Data Platform Specific Codes


G1 1.61% + 0.00 Canada Intracountry Consumer Base MasterPass (Credit)

H50 CG1/UG1 N/A B2 N/A TBD N/A

G2 1.89% + 0.00 Canada Intracountry Consumer High Spend MasterPass (Credit)


G3 2.49% + 0.00 Canada Intracountry Consumer Premium High Spend MasterPass (Credit)


G4 1.00% + 0.00 Canada Intracountry MasterPass (Debit) H53 CG4/

UG4 N/A B5 N/A TBD N/A

The following fee programs will be added to support MasterPass interchange:



104







System Impacts • First Data platforms will be updated to support the new interchange programs as detailed

in the previous tables Business Impacts • Clients should be aware of these new programs and rates being introduced in Canada

and notify their impacted merchants



Introduction of Intracountry Debit Interchange Programs In Canada

105

Mandatory

Elective

US International


Back Office

Other

16.1

MasterCard is introducing new debit intracountry consumer interchange programs for the Canada region. • Charity IRD for Debit MasterCard to support interchange for charity

merchants • Emerging sectors IRD to encourage growth of electronic payments in

specific industries such as Utilities, Real Estate, Tax Payments, Education and Childcare

• Recurring payment IRD to support recurring payment transactions


• MasterCard Debit transactions will be identified by the presence of Consumer Debit Product IDs: • MCD, MDG, MDH, MDO, MDP, MDR, MDS, MHA, MHB, MHH, MIA, MIP, MPA, MPF,

MPG, MPM, MPN, MPO, MPP, MPR, MPT, MPV, MPX, MPY or MPZ

106



107


MC IRD Rate MasterCard Fee

Program First Data Platform Specific Codes


59 0.30% + 0.00 Canada Intracountry Consumer Debit Emerging Sectors

N76 C5A/U5A N/A BA N/A TBD N/A

CR 0.60% + 0.00 Canada Intracountry Consumer Debit Recurring Payments

N77 CCR/UCR N/A BB N/A TBD N/A

C5 0.30% + 0.00 Canada Intracountry Consumer Debit Charity N78 CC5/

UC5 N/A BC N/A TBD N/A

The following fee programs will be added to support Intracountry debit interchange:



108







System Impacts • First Data platforms will be updated to support the new interchange programs as detailed

in the previous tables Business Impacts • Clients should be aware of these new programs and rates being introduced in Canada

and notify their impacted merchants



Introduction of Purchase with Cash Back for the Canada Region

109

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

With the Fall 2014 release, MasterCard introduced cash back at the point-of-sale for MasterCard reloadable prepaid cards, chip enabled cards and debit cards with pin. In order to stay in alignment with the recently Visa mandated changes, First Data will support the Purchase with Cash Back changes for MasterCard effective with the 2016 Spring Release. • Cash back is only available with a purchase • Cash back amount must be less than the total purchase amount • Interchange is not assessed on the cashback option of the

transaction


110

The following consumer debit interchange programs will be modified to support MasterCard Purchase with Cashback in Canada:

Plan Code

Bill Code IRD Description Plan

Code Bill Code IRD Description

445 RM 41 CANADA INTRA SPMKT BASE DB 454 N/A 49 CANADA INTRA PETROL T2 DB

446 N/A 42 CANADA INTRA SPMKT T1 DB 455 RT 50 CANADA INTRA SPEC CLO BASE

447 N/A 43 CANADA INTRA SPMKT T2 DB 456 N/A 51 CANADA INTRA SPEC CLO T1

448 RN 44 CANADA INTRA BBOX BASE DB 457 N/A 52 CANADA INTRA SPEC CLO T2

449 N/A 45 CANADA INTRA BBOX T1 DB 461 3A 55 CANADA INTRA OTHER BASE DB

450 N/A 46 CANADA INTRA BBOX T2 DB 462 N/A 56 CANADA INTRA OTHER T1 DB

451 RO 47 CANADA INTRA PETROL BASE DB 463 N/A 58 CANADA INTRA OTHER T2 DB

453 N/A 48 CANADA INTRA PETROL T1 DB


North/South/Proprietary


111

The following consumer credit interchange programs will be modified to support MasterCard Purchase with Cashback in Canada:

The following commercial credit interchange program will be modified to support MasterCard Purchase with Cashback in Canada:




Plan Code

Bill Code

IRD Description Plan Code

Bill Code

IRD Description

022 II 70 CANADA INTRACOUNTRY STD 475 IN 71 CANADA INTRA ELECT

421 FB 74 CANADA SPRMKT ELECT 477 N/A 61 CAN INTRA CONSUMER VOL T2

423 FC 75 CANADA PETRO ELECT 479 N/A 62 CAN INTRA CONSUMER VOL T3

Plan Code

Bill Code

IRD Description

111 I4 40 CANADA INTRACOUNTRY PURCH1


112







System Impacts • First Data will update systems to process purchase with cash back in Canada. Changes

include, but are not limited to, interchange qualification to exclude cash back amount and updates to back-office reporting to calculate billing for transactions containing cash back amounts.

Business Impacts • Clients should be aware that Purchase with Cash Back in Canada will be available to

merchants when the customer uses eligible MasterCard reloadable, chip enabled prepaid cards and debit cards with pin



113

Mandatory

Elective

US International


Back Office

Other

16.1

With the Canada Region Interchange Bulletin No. 7 dated December 22, 2015, MasterCard announced adjustments to Consumer Debit interchange rates in the Canada region. The rates for these fee programs were previously set to zero at MasterCard’s direction when they were announced in the M-C309 section of the Fall 2009 Release.

Modifications to MasterCard Canada Consumer Debit Interchange



114





41 0.15% + 0.05 Canada Intracountry Supermarket Base

445 C01,U01

N/A RM N/A 79E

N/A

42 0.15% + 0.05 Canada Intracountry Supermarket Tier 1 (minimum CAD 1.5 billion net purchase volume)

446 C02,U02

N/A N/A N/A N/A N/A

43 0.15% + 0.05 Canada Intracountry Supermarket Tier 2 (minimum CAD 10 million net purchase volume)

447 C03,U03

N/A N/A N/A N/A N/A

44 0.25% + 0.05 Canada Intracountry Big Box Stores Base

448 604,C04,U04

N/A RN N/A 80E

N/A

45 0.25% + 0.05 Canada Intracountry Big Box Stores Tier 1 (minimum CAD 1.5 billion net purchase volume)

449 605,C05,U05

N/A N/A N/A N/A N/A

The following fee program rates will be updated:



115





46 0.25% + 0.05 Canada Intracountry Big Box Stores Tier 2 (minimum CAD 10 million net purchase volume)

450 606,C06,U06

N/A N/A N/A N/A N/A

47 0.15% + 0.05 Canada Intracountry Petroleum Base 451 607,C07,U07

N/A RO N/A 81E

N/A

48 0.15% + 0.05 Canada Intracountry Petroleum Tier 1 (minimum CAD 1.5 billion net purchase volume)

453 608,C08,U08

N/A N/A N/A N/A N/A

49 0.15% + 0.05 Canada Intracountry Petroleum Tier 2 (minimum CAD 10 million net purchase volume)

454 609,C09,U09

N/A N/A N/A N/A N/A

50 0.25% + 0.05 Canada Intracountry Speciality Clothing Stores Base

455 610,C10,U10

N/A RT N/A 82E

N/A

The following fee program rates will be updated (cont.)



116





51 0.25% + 0.05 Canada Intracountry Speciality Clothing Stores Tier 1 (minimum CAD 1.5 billion net purchase volume)

456 611, C11, U11

N/A N/A N/A N/A N/A

52 0.25% + 0.05 Canada Intracountry Speciality Clothing Stores Tier 2 (minimum CAD 10 million net purchase volume)

457 612, C12, U12

N/A N/A N/A N/A N/A

55 0.25% + 0.05 Canada Intracountry Other Electronic Base

461 615, C15, U15

N/A 3A N/A 83E

N/A

56 0.25% 0.05 Canada Intracountry Other Electronic Tier 1 (minimum CAD 1.5 billion net purchase volume)

462 616, C16, U16

N/A N/A N/A N/A N/A

58 0.25% + 0.05 Canada Intracountry Other Electronic Tier 2 (minimum CAD 10 million net purchase volume)

463 617, C17, U17

N/A N/A N/A N/A N/A

The following fee program rates will be updated (cont.)



117







System Impacts • First Data platforms will be updated as detailed in the previous tables Business Impacts • Clients should be aware of these modified rates in Canada and notify their impacted

merchants


Canada Pricing Bulletins

118

Mandatory

Elective

US International

Authorization

Clearing

Back Office

Other

16.1

In October 2015, MasterCard announced changes to a number of different fees in the Canada region. • Bulletin 17 - Automatic Billing Updater Acquirer Pricing Change in

Canada • Bulletin 18 - Account Status Inquiry Service Fees-Implementation

Date - Canada Region • Bulletin 19 - Pricing for the Address Verification Service - Canada

Region • Bulletin 20 - Card Verification Code 2 Transaction Fee - Canada

Region • Bulletin 21 - Revised Authentication and SecureCode Pricing for

MasterCard Directory Server Usage - Canada Region • Bulletin 23 - MasterCard Announces Introduction of Acquirer License

Fee - Canada Region • Bulletin 24 - MasterCard Announces Removal of Acquirer IPM Cross-

Border Presentment Fees - Canada Region • Bulletin 25 - MasterCard Announces Revised Fixed Monthly Acquirer

Access Fee - Canada Region


• Bulletin 17 - Automatic Billing Updater Acquirer Pricing Change in Canada • Effective April 3, 2016, MasterCard will change to the following acquirer monthly

update structure for ABU usage • ABU is a program that helps ensure uninterrupted payment for MasterCard

customers by seamlessly updating card-on-file account information. ABU maintains and builds customer satisfaction, making it less likely for customers to switch to another merchant.

119

ABU Acquirer Monthly Updates Update Fee Billing Event 0–208,000 USD 0.125 TSC6602

208,001–800,000 USD 0.120 TSC6602

800,001 or more USD 0.100 TSC6602



120


Platform Summary of Changes Modified by

South The following existing tran codes will be modified to support Canada. These fees will be set by the Clients. • 456 - MC AUTO BILLING UPDATER MONTHLY FEE • 457 - MC AUTO BILLING UPDATER PER TRAN FEE

FD Systems Clients

Proprietary Not currently supported. MAS will address under a separate project. TBD

First Data will support the updated ABU structure by platform as follows:


• Bulletin 18 - Account Status Inquiry Service Fees - Implementation Date - Canada Region • Effective as of April 4, 2016 billing for transactions processed on or after April 1,

2016 MasterCard will introduce the Account Status Inquiry Service fee in the Canada region

121

Fee Type Description Billing Event Code

Fee (USD)

Account Status Inquiry Fee-Interregional

This event bills acquirers when an Account Status Inquiry transaction is submitted for an interregional transaction.

2AB1116 USD 0.03 per transaction

Account Status Inquiry Fee-Intraregional

This event bills acquirers when an Account Status Inquiry transaction is submitted for an intraregional transaction.

2AB1116 USD 0.025 per transaction



122



South The following existing tran codes already support Canada. These fees will be set by the Clients. • B34 - MC CAN ACCT STATUS INQ INTERRE • B35 - MC CAN ACCT STATUS INQ INTRARE

Client

Proprietary Bulletin is out of scope. N/A

First Data will support the new Account Status Inquiry Fee by platform as follows:


• Bulletin 19 - Pricing for the Address Verification Service - Canada Region • Effective April 3, 2016, MasterCard will apply an AVS transaction fee for both card present

and card not present transactions • The Address Verification Service is a user pay service that helps merchants to identify the

probability of fraud risk, flagging suspect transactions that potentially require additional fraud screening or manual review

123

Billing Event Code Name Fee Service Code

2AV3006 Address Verification Service (AVS) Acquirer Fee - Card Not Present

USD 0.01 AV

2AV4006 Address Verification Service (AVS) Acquirer Fee - Card Present

USD 0.01 AV



124



South The following existing tran codes already support Canada. These fees will be set by the Clients. • B14 - MC AVS CARD NOT PRESENT • 477 - MC AVS ACQUIRER ACCESS FEE

Clients

Proprietary MAS will update existing fee TID 666 with the new rate. FD Systems

First Data will support the AVS Pricing Structure Fee by platform as follows:


• Bulletin 20 – Card Verification Code 2 Transaction Fee – Canada Region • Effective April 3, 2016, MasterCard will assess a new transaction fee that will apply to

all card validation code 2 (CVC 2) transactions acquired in the Canada region • The Card Validation Code 2 (CVC 2) is an optional service that was implemented to

help reduce the risk of fraud by facilitating the card authentication during the authorization process. The MasterCard CVC 2 is part of the screening tools used by merchants to ensure that the person placing the order has the card.

• The fees will be applied to all transactions that received a response value of M or N • The CVC 2 fee will not be applied to transactions that involve the Account Status

Inquiry service (ASI) • The CVC 2 fee will not be charged to recurring payment transactions (DE 61 Sf 4

equals to 4 [Standing order/recurring transactions])

125

Billing Event Code Description Fee Billed to Service ID 2AB1723 CVC 2 transaction fee USD 0.0025 Acquirers AA



126



South The following existing tran code will be modified to support Canada. This fee will be set by the clients. • B85 - MC CVC2 FEE

FD Systems Clients

Proprietary MAS will create a new fee Canada Fee TID 651 FD Systems

First Data will support the new CVC2 Transaction Fee by platform as follows:


• Bulletin 21 - Revised Authentication and SecureCode Pricing for MasterCard Directory Server Usage - Canada Region • MasterCard will revise the existing MasterCard® SecureCode™ fees associated with

issuer and acquirer use of the MasterCard global directory server effective April 4, 2016

• MasterCard will introduce revised pricing for both issuers and acquirers, effective from the start of the second quarter of 2016 (April 1, 2016) with the first billing event occurring at the end of June 2016

SecureCode Acquirer Pricing • The fixed pricing for acquirers will be revised to the following price levels and will be

payable quarterly in arrears:

127

Region Current Fixed Annual Fee Revised Fixed Annual Fee

Canada USD $4,000 USD $10,000



• Bulletin 21 - Revised Authentication and SecureCode Pricing for MasterCard Directory Server Usage - Canada Region (Cont.’d)

SecureCode Acquirer Pricing

MasterCard will also introduce a transaction based fee for acquirers located in the Canada region. MasterCard will log a count of the Verification Requests (VEReq) undertaken by any merchant that has been loaded by an acquirer to the MasterCard global directory as participating in the program and will invoice the acquirer accordingly. Effective April 3, 2016, MasterCard will apply an AVS transaction fee for both card present and card not present transactions:

128

Region Cost per Authentication Request (VEReq) Canada USD $0.03



129



South A per transaction tran code will be created to support Canada. This fee will be set by the clients. • TBD - MasterCard SecureCode Fees

FD Systems Clients

Proprietary MAS will create a new Canada fee TID • 634 - MasterCard® SecureCode™ fees

FD Systems

First Data will support the new Authentication and SecureCode Pricing for MasterCard Directory Server Usage by platform as follows:


• Bulletin 23 – MasterCard Announces Introduction of Acquirer License Fee – Canada Region • MasterCard is announcing the introduction of an Acquirer License Fee for the Canada

region. Effective Date: April 11, 2016

130

Tier Prior Year Acquirer Volume Based on Gross Acquiring Volume

Annual Acquirer License Fee (USD) Billing Event

Service Code

1 Less than $1,000,000,000 0.0125% 2FR1300 FR

2 $1,000,000,001–$5,000,000,000 $350,000 2FR1300 FR

3 $5,000,000,001–$18,000,000,000 $650,000 2FR1300 FR

4 $18,000,000,000.01 $950,000 2FR1300 FR

The fee will be collected on April 4, 2016 and will be charged at 9/12 of the annual rate for which an Acquirer has qualified based on the following annual rate table:


Introduction of Acquirer License Fee


131



South Existing tran codes will be modified to support Canada. This fee will be set by the clients. • B61 - MC License Per Item Fee • B62 - MC License Volume Fee • B63 - MC Annual License Fee • B64 - MC Mthly License Fee

FD Systems Clients

Proprietary MAS will create a new Canada fee TID • 634 - TBD

FD Systems

First Data will support the Introduction of Acquirer License Fee by platform as follows:


• Bulletin 24 – MasterCard Announces Removal of Acquirer IPM Cross-Border

Presentment Fees - Canada Region • MasterCard is announcing the removal of IPM Cross Border Presentment fees. The fees will be

decommissioned on April 11, 2016 for transactions processed on or after April 1, 2016. • As first announced in Canada Region Pricing Bulletin No. 2, December 9, 2008, IPM Acquirer

fees are billed to Canada region acquirers for cross-border transactions under the following Billing Events: 2GC2001, 2GC12401, 2GC14421, 2GC17401, 2GC6031, 2GC6961.

Removal of Acquirer IPM Cross-Border Presentment Fees The following IPM Acquirer fees will be billed at the rate of USD $0.00:

132

Service Code Billing Event GF 2GC2001 GF 2GC12401 GF 2GC14421 GF 2GC17401 GF 2GC6031 GF 2GC6961



133



South Tran code fee will be set to zero for Canada. • 453 - CROSS BORDER ASSESSMENT

FD Systems

Proprietary MAS will stop calculating to MAS Contra-revenue Cross Border Fee. FD Systems

First Data will set the Cross Border Fee to zero for Canada


• Bulletin 25 - MasterCard Announces Revised Fixed Monthly Acquirer Access

Fee – Canada Region • MasterCard is announcing changes to the structure and rates for the Fixed Monthly Acquirer

Access Fee (2EQ30212) for the Canada Region

134

Tier Annual Transaction Volume Established based on POS type activity processed

Monthly Rate (USD) Billing Event

Service Code

1 1–2,000,000 $2,100 2EQ30212T1 EQ 2 2,000,001–20,000,000 $9,100 2EQ30212T2 EQ 3 20,000,001–85,000,000 $16,200 2EQ30212T3 EQ 4 85,000,001–200,000,000 $25,800 2EQ30212T4 EQ 5 >200,000,000 $35,600 2EQ30212T5 EQ

Modification of Fixed Monthly Acquirer Access Fee The fee will be collected on April 4, 2016 and will be charged at the annual rate for which an Acquirer has qualified based on the following annual rate table:



135



South A per transaction tran code will be created to support Canada. This fee will be updated by the clients. • TBD - MC FIXED MONTHLY ACCESS FEE

FD Systems Clients

Proprietary MAS will create a new Canada per transaction fee TID. • 641 - Fixed Monthly Acquirer Access Fee (2EQ30212) for the Canada

Region

FD Systems

First Data will support the Fixed Monthly Acquirer Access fee:


136






System Impacts • First Data platforms will be updated with the changes to the MasterCard pricing fees as

detailed in the previous tables Business Impacts • Clients should be aware of the new fees and rates being introduced in Canada and notify

their impacted merchants



MasterCard US Pricing Bulletin

137

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard Acquirer Brand Volume Fee: MasterCard will revise the Acquirer Brand Volume Fee for some transactions, effective April 18, 2016. The fee will be billed weekly beginning April 24, 2016. MasterCard will increase the Acquirer Brand Volume Fee by 0.01% from 0.13% to 0.14%, on consumer and commercial credit volume only on transactions of USD $1,000 or higher. This pricing does not apply to Debit transactions. MasterCard SecureCode Transaction Fee: Effective 1 April 2016, MasterCard will also introduce a transaction based fee for acquirers located in the U.S. region. MasterCard will log a count of the Verification Requests (VEReq) undertaken by any merchant that has been loaded by the acquirer to the MasterCard global directory as participating in the MasterCard SecureCode program. This will only result in a charge if the merchant has participated in the MasterCard SecureCode program.


138

MasterCard US Pricing Bulletin Below are the existing Fee Codes for the MasterCard Acquirer Brand Volume Fee:


North The following Fee Sequence Codes will be modified to support the new ABV rate for transactions over $1000: • 237 - MC Assessmnt Tran Amt >=$1K • 26B - MC Assessmnt Fee >=$1K Wholsle • 26C - MC Assessment Fee >=$1K *

FD Systems *FSC 26C is updated by our Bank Partners on the Outlet Table

South The following Tran Code will be updated to support the new AVB rate for transactions over $1000: • B45 - MC Assessmnt Tran Amt >=$1K

FD Systems

Memphis Memphis Monthly Billing Program will be updated for MC credit products USD $1000

FD Systems

Proprietary The MAS Code for Fee TIDs 467 and 867, MC Asmt Tran Amt >=$1K, will be updated to support the new AVB rate for transactions over $1000

FD System

Omaha The Product Control File (PCF) Section MP PC IE, under field heading: “MC DUES/ASSM VOL % >= 1000” or Clients must update the merchants on the MasterCard Merchant Brand Fee (MBF) Screen under field heading - “ VOLUME >= 1,000”

Clients


139

MasterCard US Pricing Bulletin Below are the new Fee Codes for the MasterCard SecureCode transaction fee: The SecureCode Quarterly Fee (Billing Event Code 2EC2800) is also increasing from USD $4000 to USD $10,000 for Acquirers who use the MasterCard global directory server.


North The following Fee Sequence Code will be created to support the new MC SecureCode transaction fee: • TBD - MC SecureCode Fee

Bank Partners

South The following Tran Code will be created to support the new MC SecureCode transaction fee: • TBD – MC SecureCode Fee

FD Systems

Memphis Memphis Monthly Billing Program will be updated to include billing for the new MC SecureCode transaction fee

FD Systems

Proprietary A new MAS Code, 2105VEREQ - MC-SECURECODE AUTH, to all for billing of the MC SecureCode fee

FD System

Omaha TBD Clients



140

MasterCard is announcing revised pricing for the Type III TPP Registration Fee. MasterCard will collect the annual fees on Monday, 4 April 2016. The Type III TPP Registration Fee (billing event code 2FR1301; service ID FR) is based on the relationship that the Type III TPP has or had with each acquirer in 2015. The amount assessed per Type III TPP will be 50 percent of the annual Acquirer License Fee that the acquirer pays to MasterCard. MasterCard also announced an increase in the Acquirer License Fee (Billing Event Code 2FR1300: Service ID FR).

Tier Prior Calendar Year Acquirer Volume

Current Fee Structure Revised Fee Structure

1 More than USD 100 billion USD 5 million USD 7.5 million

2 USD 30-100 billion USD 2 million UD 3.0 million

3 USD 15-30 billion USD 0.75 million USD 1.1 million



6 USD 0-1 billion 0.0125% 0.0125% (no change)


141





System Impacts • First Data platforms will be updated with the changes to the MasterCard pricing fees as

detailed in the previous tables • Additional details on billing functionality will be provided in an upcoming Business call Business Impacts • Clients should be aware of the new fees and rates and notify their impacted merchants • Clients should update and add fee sequence codes as needed



142





Business Impacts MasterCard Acquirer Brand Volume Fee: • Clients should notify their merchants of the fee increase for MasterCard credit transactions of USD

$1000 or more • Clients that utilize Fee Sequence 26C on the North Platform will be responsible for making any fee

modifications • Omaha clients must update the Product Control File (PCF) Section MP PC IE, under field heading:

“MC DUES/ASSM VOL % >= 1000” or update the merchants on the MasterCard Merchant Brand Fee (MBF) Screen under field heading - “ VOLUME >= 1,000” with the new rate

• Clients should notify their merchants of the fee increase for MasterCard credit transactions of USD $1000 or more

MasterCard SecureCode Transaction Fee: • Clients should review their portfolio to determine if they have merchants participating in the

SecureCode program • Clients should add the correct Fee Code to their Merchants MIDs if they participate in the program



Changes to Global Acquirer Support Fee

143

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard will revise the (GAF) Global Acquirer Program Support Fee to no longer credit the acquirer for chargebacks, refunds and returns.

• The following billing events will be assessed a rate of 0.00 percent effective April 18, 2016

• In addition, MasterCard will revise the Cross Border fees for credits due to chargebacks

Billing Event Code

Name Current Rate (%)

Revised Rate (%)

Service ID

2GJ1002 Global Acquirer Program: Credits Global - 0.85% 0.00 GJ

Billing Event Code

Name

Current Rate (%)

Revised Rate (%)

Service ID

Various Acquirer Cross Border Chargeback 1.00% 0.00 DN

Various Acquirer Cross Border Chargeback

0.60% 0.00 DN



144

MC IRD MasterCard Fee Program First Data Platform Specific

Codes US Acquired Non-US Acquired

24 MC-ECOMM MERCH UCAF 087 085 61 MC-CORP BUSINESS INTL FLT 176 362 62 MC-CORP LARGE TICKET INTL PUR 154 039 62 MC-CORP LARGE TICKET INTL PUR 164 039 63 MC-CORP PURCHASING INTL PUR 156 365 63 MC-CORP PURCHASING INTL FLT 166 363 67 MC-CORP DATA RATE II INTL PUR 152 041 73/83 MC-FOREIGN ELECTRONIC 005 035 75/85 MC-FOREIGN STANDARD 006 036 79 MC-ECOMM FULL UCAF 088 086 EE MC-INT SPR PREM ELECTRONIC A05 A01 EF MC-INT SPR PREM FULL UCAF A06 A02

EM MC-INT SPR PREM MERCH UCAF A07 A03

North/South platforms - Refunds processed with the following interregional programs will be cleared at the corresponding Non-US code without the Global Acquirer Support Fee:



145



ES MC-INT SPR PREM STANDARD A08 A04 IP MC-PREM COM STD ACQUSISSCAN 312 745 IP MC-PREM COM STD ACQUSISSLAC 321 745 IP MC-PREM COM STD ACQUSISSAP 333 745 IP MC-PREM COM STD ACQUSISSSAM 411 745 LD MC-REGULATED POS UST N05 N03 LD MC-REGULATED COMM UST INT N13 N11 LF MC-REG WFRAUD ADJ UST POS N06 N04 LF MC-REG FRD ADJ CMM UT INT N14 N12 LS MC-REG POS SMLTKT UST INT N33 N34 LS MC-REG SMLTKT UST INT COM N37 N38 LT MC-REG SMALL TICKET UT T1 N41 N40 LT MC-REG SML TKT UST COM T1 N45 N44




146



PE MC-PREM CON ELEC ACQUSISSCAN 308 743 PE MC-PREM CON ELEC ACQUSISSLAC 316 743 PE MC-PREM CON ELEC ACQUSISSAP 326 743 PE MC-PREM CON ELEC ACQUSISSEU 336 743

PE MC-PREM CON ELEC ACQUSISSSAM 408 743 PF MC-PREM CON FCAF ACQUSISSCAN 307 741

PF MC-PREM CON FCAF ACQUSISSLAC 315 741 PF MC-PREM CON FCAF ACQUSISSAP 323 741 PF MC-PREM CON FCAF ACQUSISSEU 335 741 PF MC-PREM CON FCAF ACQUSISSSAM 407 741 PM MC-PREM CON MCAF ACQUSISSCAN 310 742

PM MC-PREM CON MCAF ACQUSISSLAC 319 742

PM MC-PREM CON MCAF ACQUSISSAP 329 742




147



PM MC-PREM CON MCAF ACQUSISSEU 337 742 PM MC-PREM CON MCAF ACQUSISSSAM 409 742

PS MC-PREM CON STD ACQUSISSCAN 306 744 PS MC-PREM CON STD ACQUSISSLAC 314 744

PS MC-PREM CON STD ACQUSISSAP 322 744

PS MC-PREM CON STD ACQUSISSEU 334 744

PS MC-PREM CON STD ACQUSISSSAM 406 744




148







System Impacts • North/South systems will be updated to support this change as detailed in previous

slides • Proprietary platform will modify MAS code to no longer assess the rate of – 0.85% on

refunds processed with the IRDs listed previously • Impacts for Omaha and Memphis platforms are TBD at this time and will be

communicated in a future business call Business Impacts • Clients should be aware of the change to the GAF on refunds processed for

interregional MasterCard transactions • Clients should be aware of the rate change for Cross Border on chargeback transactions


Global Wholesale Travel Transaction Program

149

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

In July 2015 MasterCard introduced new commercial credit product code MBS (MasterCard B2B) to complement Business-to-Business (B2B) service processing. Effective with the Spring 2016 release, the following modifications will be made to the existing rules for acceptance of product-code MBS: • MasterCard will have a defined set of MCC’s that will be eligible for

IRD BB when they accept an MBS card • MCC’s that are not eligible for IRD BB, when accepting an MBS

card, will have transactions clear at existing interchange programs where MCO cards clear today

• Note: Non-eligible MCC’s will not be eligible for “One-Fee” processing.

• Only sales and credit transactions can clear with MBS cards. Unique transactions are no longer eligible.



150

CAB Code MCC Descriptor

A001 3000 – 3350, 4511 Airlines

B001 4411 Cruise / Steamship

H001 3501 – 3999, 7011 Lodging

R001 4112 Railways

V001 3351 – 3500, 7512, 7513, 7519 Automobile / Vehicle Rental

GW01 4131 / 4582 4722 5962 6513 7032 7033 / 7012 7298 7991 7997 7999

Bus Lines / Airports, Airport Terminals, Flying Fields Travel Agencies and Tour Operators Direct Marketing—Travel-Related Arrangement Services Real Estate Agents and Managers—Rentals Recreational and Sporting Camps Campgrounds and Trailer Parks / Timeshares Health and Beauty Spas Tourist Attractions and Exhibits Clubs—Country Clubs, Membership [Athletic,] Recreation Services—not elsewhere classified

The following MCC’s will continue to clear at IRD BB for MBS cards:



151

North / South

Plan-code IRD Description Plan-

code IRD Description

A20 61 MC-PANAMA INTRA COMMERCIAL H08 72 MC-DR INTRA-COUNTRY 2

A60 61 MC-AP INTRA COMMERCIAL STD H09 73 MC-DR INTRA-COUNTRY 3

A65 69 MC-AP RGN COMM LRG TCKT H10 75 MC-DR INTRA-COUNTRY 4

B56 61 MC-JAM COM CREDIT H28 CC MC-CAN INTRA COMM CHARITY

B94 BQ MC-CANADA COMML DATA RATE I 42 61 MC-LAC COMMERCIAL STD

B95 BR MC-CANADA COMML DATA RATE II 111 40 MC-CANADA INTRACOUNTRY PURCH 1

B96 BS MC-CANADA COMML LG TKT 108 65 MC-COMML STANDARD CORP

H07 71 MC-DR INTRA-COUNTRY 1 155 SC MC-BUS LEVEL 2 DATA RATE III

The following interchange programs will be modified to support the acceptance of MBS cards when the MCC is not eligible for IRD BB:



152

North / South



157 60 MC-COMM FACE TO FACE (US) CORP 170 69 MC-CORP T & E II(US) CORP

158 68 MC-CORP DATA RATE I (US) CORP 171 89 MC-CORP T & E III(US) CORP

159 67 MC-CORP DATA RATE II (US) CORP 173 67 MC-CORP DR 2 PETRO (US) CORP

160 66 MC-CORP DATA RATE III (US)CORP 175 SF MC-BUS LEVEL 2 LG TKT II

162 76,86 MC-CORP T & E I(US) CORP 177 SG MC-BUS LEVEL 2 LG TKT III

163 94 MC-CORP LG TKT II (US) CORP 178 61 MC-PUERTO RICO INTRA CORPORATE

165 SE MC-BUS LEVEL 2 LG TKT I 179 63 MC-PUERTO RICO INTRA CORP PURC

168 99 MC-CORP LG TKT III (US) CORP 198 60 MC-COMML F2F PETRO (US) CORP

169 62 MC-CORP LT I/DR III CORP 250 60 MC-WORLD FACE TO FACE CORP



153

North / South



251 SN MC-BUS LEVEL 2 T&E II A77 89 MC-CORP T & E III PASSNGR TRAN

262 60 MC-WLD ELITE FACE TO FACE CORP A97 CH MC-CHARITIES (NR)

293 E1 MC-COM LG TICKET MPG CORP-T1 A99 CH MC-CHARITIES COMM

338 67 MC-ELEC PAY ACCT DATA RATE II B60 E1 MC-COM LG TICKET MPG CORP-T2

339 68 MC-ELEC PAY ACCT DATA RATE I B68 E1 MC-COM LG TICKET MPG CORP-T3

506 67 MC-HD-CORPORATE DATA RATE II B76 E1 MC-COM LG TICKET MPG CORP-T4

A75 76,86 MC-CORP T & E I PASSNGR TRAN B84 E1 MC-COM LG TICKET MPG CORP-T5

176 61 MC-CORP BUSINESS INTL FLT 362 61 MC-CORPORATE INTL NON-U

A76 69 MC-CORP T & E II PASSNGR TRAN 164 62 MC-CORP LARGE TICKET INTL FLT



154

Memphis



L61 61 MC-LAC COMMERCIAL STD SSE SE MC-BUS LEVEL 2 LG TKT I F61 / I61 61 MC-CORP BUSINESS INTL FLT C62 62 MC-CORP LT I/DR III CORP

SSC SC MC-BUS LEVEL 2 DATA RATE III O67 67 MC-CORP DR 2 PETRO (US) CORP

C68 68 MC-CORP DATA RATE I (US) CORP SSF SF MC-BUS LEVEL 2 LG TKT II

C67 67 MC-CORP DATA RATE II (US) CORP

SCH CH MC-CHARITIES (NR)

C66 66 MC-CORP DATA RATE III (US)CORP

BCH CH MC-CHARITIES COMM

C86 76,86 MC-CORP T & E I(US) CORP C65 65 MC-COMML STANDARD CORP

C94 94 MC-CORP LG TKT II (US) CORP C60 60 MC-COMM FACE TO FACE (US) CORP

O60 60 MC-COMML F2F PETRO (US) CORP E60 60 MC-WLD ELITE FACE TO FACE CORP



155

Proprietary



OD BQ MC-CANADA COMML DATA RATE I I4 40 MC-CANADA INTRACOUNTRY PURCH 1

OE BR MC-CANADA COMML DATA RATE II PV 61 MC-PUERTO RICO INTRA CORPORATE

OF BS MC-CANADA COMML LG TKT PV 63 MC-PUERTO RICO INTRA CORP PURC

IB 61 MC-LAC COMMERCIAL STD 4B SC MC-BUS LEVEL 2 DATA RATE III

ZB 76,86 MC-CORP T & E I(US) CORP 2G CH MC-CHARITIES (NR)

6B SE MC-BUS LEVEL 2 LG TKT I 3G CH MC-CHARITIES COMM

7B SF MC-BUS LEVEL 2 LG TKT II IB 61 MC-CORPORATE INTL NON-U

UU / YT 60 MC-WORLD FACE TO FACE CORP IB 61 MC-CORP BUSINESS INTL FLT

5C SN MC-BUS LEVEL 2 T&E II IL 62 MC-CORP LARGE TICKET INTL FLT

UU / YJ 60 MC-WLD ELITE FACE TO FACE

CORP



156





System Impacts • First Data systems will be updated to allow only eligible MCCs accepting MBS cards to

clear at IRD BB. Non-eligible MCCs accepting MBS cards will clear at the same interchange programs where MCO cards qualify in production today

• All platform billing and reporting systems will be updated to remove support of the associated fee (One-Fee) with MBS cards when the merchant is not eligible for IRD BB

Business Impacts • Clients should be aware that only eligible MCCs will be able to clear at IRD BB when

accepting MBS cards


MasterCard Digital Enablement Service Support of MasterCard Purchasing Card

157

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

MasterCard is adding commercial purchasing cards to token processing. • Beginning January 22, 2016 this change allowed commercial

purchasing card cardholders to make tokenized payments using their devices

MasterCard’s introduction of Purchasing card to token processing will have no impact from a processing standpoint.

• Purchasing cards are not excluded from token processing by First Data platforms today


MasterCard Digital Enablement Service Support of MasterCard Purchasing Card

158




System Impacts • No impact. Systems do not exclude purchasing cards from token processing today. Business Impacts • Clients should be aware of the expansion of token processing to include purchasing

cards


SafeKey Mandate in U.S.

159

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

As announced in the American Express Fall 2015 Processor bulletin, SafeKey is a required certification for all processors who provide services to U.S. merchants, to be completed by October 31, 2016. According to The Nilson Report, August 2013, $11.27 billion was lost to fraud in 2012 by merchants, issuing banks and acquirers worldwide - Up 14.6% from a year earlier. American Express is taking steps to help protect merchants from the impacts of fraud. SafeKey is based on the 3-D Secure® protocol, an industry-standard authentication method, which provides greater security by verifying the cardmember during an online purchase. SafeKey helps reduce unauthorized online use, before it happens, by confirming the cardmember's identity through the use of additional transaction data, potentially including a cardmember passcode or a unique value.


• What is SafeKey? The American Express SafeKey program (“SafeKey”) is a payer authentication service that adds an extra layer of security when a participating Card Member shops online. SafeKey helps reduces unauthorized online use before it happens by validating the Card Member’s identity with an additional password or unique value.

• Where is American Express SafeKey available?

In addition to the mandate for support in the U.S., SafeKey is currently supported in the countries of: visit www.amexsafekey.com for a complete list.

• What is 3-D Secure?

3-D Secure is an e-commerce fraud prevention protocol. American Express has licensed the 3-D Secure protocol and launched a branded solution called American Express SafeKey.

• What costs are involved to support SafeKey?

Costs for American Express Network certification and certificates and enrollment requirements are being reviewed with American Express and updated information will be provided at a later date.

160


http://www.amexsafekey.com/


• There are several ways SafeKey can help Merchants optimize operational efficiency by reducing the costs of fraud • Merchants can transfer the liability for chargeback losses from applicable transactions to the

issuing bank with the Fraud Liability Shift (FLS) Policy. That means Merchants are not liable for losses on eligible transactions authenticated by the issuing bank in SafeKey enabled markets.

• The American Express solution may decrease the number of chargebacks merchants have, therefore lowering the need for a resource dedicated to chargebacks

• SafeKey works alongside existing fraud tools to validate a cardmember’s identity

• To meet this mandate, First Data must certify support of SafeKey data elements found in the authorization messages 1100 and 1110 and the settlement TAB record within the U.S. • Most notably, the Electronic Commerce Indicator located in field 61-National Use Data for

authorization message 1100 and Electronic Commerce Indicator-field 31 in the TAB record may contain one of the following values: • 05 = Authenticated with AEVV

• 06 = Attempted with AEVV

• 07 = Not Authenticated • *Please note, the Electronic Commerce Indicator field is currently utilized for support of Token functionality with a

value of “20”

161



162





North/PTS Proprietary South/PTS HDC Direct

Memphis Buypass Direct

Omaha

System Impacts • All applicable authorization platforms will be updated and certified to support new values

within existing fields in the authorization request (1100) and authorization response (1110) messages and pass applicable values within clearing records

• Clearing will ensure ability to receive the value for Electronic Commerce Indicator and pass to American Express in the settlement TAB record

Business Impacts • Clients must be aware of the new SafeKey functionality available for merchants located

within the U.S.



OptBlue® Pricing Changes for U.S.

163

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

American Express has added a new micro-pricing structure for the Bar/Catering and Restaurant industries. Micro-pricing levels will be referred to as “Tier 0” to align with the current Tier 1, Tier 2, and Tier 3 pricing levels of the OptBlue program. There is no change to existing merchants nor boarding processes for these industries. Please note the following: • New rates apply to all transactions USD $5.00 and under • These new pricing levels are “merchant cannot set”; they will be

used for qualification only - Omaha Platform awareness • Existing Tier 1 rates will now apply to transaction amounts of USD

$5.01 up to and including USD $25.00 See chart on the next page for rates, descriptions and plan codes / fee attributes for each industry.


164


Rate Acquirer Fee Program First Data Platform Specific Codes


1.90% + 0.04 AXP Bar / Caterer Base T0 9D7 N/A N/A N/A 638 N/A N/A

2.20% + 0.04 AXP Bar / Caterer NonSwipe T0 9D8 N/A N/A N/A 639 N/A N/A

2.30% + 0.04 AXP Bar / Caterer NonUS T0 9D9 N/A N/A N/A 640 N/A N/A

2.60% + 0.04 AXP Bar / Caterer NonSwipe NonUS T0

9E0 N/A N/A N/A 641 N/A N/A

1.90% + 0.04 AXP Restaurant Base T0 9E1 N/A N/A N/A 642 N/A N/A

2.20% + 0.04 AXP Restaurant NonSwipe T0 9E2 N/A N/A N/A 643 N/A N/A

2.30% + 0.04 AXP Restaurant NonUS T0 9E3 N/A N/A N/A 644 N/A N/A

2.60% + 0.04 AXP Restaurant NonSwipe NonUS T0

9E4 N/A N/A N/A 645 N/A N/A

OptBlue Pricing Changes for U.S.


165






Direct Omaha

System Impacts • The appropriate rate tables and systems will be updated to reflect the new rates,

descriptors and plan codes/fee attributes for North and Omaha clearing platforms • Reporting and statements will be updated to reflect the new descriptors, rates and plan

codes/fee attributes Business Impacts • Clients must be aware of the new pricing level Tier zero (0) and changes to the existing

Tier 1 level which may appear on the merchant’s statement

OptBlue Pricing Changes for U.S.


MCC Reassignment

166

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

American Express modified the Prohibited Merchant Industries by removing the following MCCs from the Prohibited Industries and Categories - Do Not Sign list. • MCC 5815 - Media, Books, Movies, Music • MCC 5816 - Digital Goods Games • MCC 5817 - Digital Goods Applications (excludes games) • MCC 7513 - Truck & Utility Trailer Rentals • MCC 7519 - Motor Home & Recreational Vehicle Rentals • MCC 6513 - Real Estate and Managers - Rentals • MCC 7273 - Dating Services* *Dating Services was added to the High Risk category list. As a High Risk Merchant the MCC may be signed by Acquirer and qualify as Program Merchant Prospects under the Program. Additional verification is required to validate the business is a legitimate dating service.


167


Acquirer Fee Program First Data Platform Specific Codes


AXP Svcs Base T1 972 N/A N/A N/A 542 N/A N/A



AXP Svcs Base Non US T1 974 N/A N/A N/A 545 N/A N/A



AXP Svcs NonSwipe Non US T1 975 N/A N/A N/A 614 N/A N/A



AXP Svcs NonSwipe T1 973 N/A N/A N/A 584 N/A N/A



The following plan codes and fee attributes for Services and Professional Services will be updated to support MCCs 7273, 7513, and 7519:

MCC Reassignment


168




AXP MOTO/Internet Base T1 924 N/A N/A N/A 512 N/A N/A



AXP MOTO/Internet Non US T1 926 N/A N/A N/A 515 N/A N/A



AXP MOTO/Internet NonSwipe Non US T1 927 N/A N/A N/A 599 N/A N/A



AXP MOTO/Internet NonSwipe T1 925 N/A N/A N/A 569 N/A N/A



The following plan codes and fee attributes for MOTO/Internet will be updated to support MCCs 5815, 5816, and 5817:

MCC Reassignment


169




AXP Other Base T1 936 N/A N/A N/A 560 N/A N/A



AXP Other Non US T1 938 N/A N/A N/A 563 N/A N/A



AXP Other NonSwipe Non US T1 939 N/A N/A N/A 623 N/A N/A



AXP Other NonSwipe T1 937 N/A N/A N/A 593 N/A N/A



The following plan codes and fee attributes for Other Services will be updated to support MCC 6513:

MCC Reassignment


170





Direct Omaha

System Impacts • All applicable authorization platforms will be updated to allow the updated/eligible MCCs • Applicable boarding tools will be updated to allow the updated/eligible MCCs • North Merchant Manager will apply the appropriate edits to account for the MCCs • All reporting categorized by MCC will be updated to report the permissible MCCs Business Impacts • Clients should be aware the now allowable MCC 7273 (Dating Service) will be considered as a High

Risk MCC • Clients need to be aware of this change for potential merchant boarding, authorization, and settlement

impacts • Clients with their own boarding tools need to be aware of the changes and make appropriate updates

to allow boarding and processing for merchants associated with the MCCs

MCC Reassignment


Appendix K - Franchise Exclusion List

171

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

American Express has added the following merchants to the Franchise Exclusion List: • B&B Burger & Beer Joint (Added June 2015) • Carl’s Jr. (Added June 2015) • CKE Restaurants (Added June 2015) • Fire House Subs (NEW) • Hardee’s (Added June 2015) • Jackson Hewitt (NEW) • Marco’s Pizza (Added June 2015) • Which Wich (Added June 2015) Merchants identified on the Franchise Exclusion List, including those above, are prohibited from boarding under the OptBlue® program. Failure to comply with this mandate may result in the assessment of a non-compliance fee by American Express to First Data and its partners.


172




Direct Omaha

System Impacts • All North and Omaha boarding tools that support OptBlue will be updated to reflect the

new list of franchises within the reference guide section Business Impacts • Clients and their sales channels must be aware of these franchises and refrain from

signing merchants who participate • Failure to comply with this mandate may result in non-compliance fees being assessed

by American Express

Appendix K - Franchise Exclusion List


Frequency Changes to Multiple OptBlue® Files

173

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Effective with the Spring 2016 release, American Express has announced the frequency of OptBlue program files for providing merchant data elements will change from weekly to daily. This includes the Sponsored Merchant file, Sponsored Merchant Response file, and Seller Cancelled Derogatory file. Today, the American Express Sponsored Merchant file is sent on a weekly basis to identify all merchants who participate in the OptBlue program • If a merchant processes prior to appearing on this weekly file, the

transaction could be declined or an incorrect descriptor name could display on the pending transaction and/or cardholder fraud alert

For historical purposes, newly boarded OptBlue accounts are mapped to existing accounts created for other programs within American Express’ systems, if a match is found. • If a merchant record contains a derogatory status, the OptBlue account is

returned on the Seller Cancelled Derogatory file and must be removed from the OptBlue program within 2 business days.


American Express also uses the Sponsored Merchant file to match information from the transaction record in order to ensure all appropriate data has been supplied in support of the OptBlue program.

• Incorrect or missing information may result in any of the following scenarios: • Incorrect descriptor name on the pending transaction • Authorization declines • Chargebacks

Beginning April 15th, 2016, additional changes will include: • New fields will be added to the OptBlue entitlement screen for “STATUS CHANGE

CODE” and “STATUS CHANGE DATE” to notify American Express that a Seller has been cancelled or reinstated under the OptBlue program. Valid values are:

• Space - If there is no change to the Seller’s status, leave this field blank (space) • D - Canceled Derogatory • N - Canceled Non-Derogatory • R - Reinstatement of previously canceled Seller

• These new fields and values will also be displayed on the daily Sponsored Merchant file. Corresponding error flag fields have also been added to be populated with “Y” or “N” on the Sponsored Merchant Response file.

174

Frequency Changes to Multiple OptBlue Files


• First Data is required to transmit a Sponsored Merchant file daily by 5:00 PM MST* with Net New Sellers for each clearing platform

• *Due to a timing conflict with the American Express SLA, Omaha has submitted an exception to transmit files prior to 11:00 PM MST/12:00 AM CST. As of January 22, 2016, American Express has approved this request indefinitely.

• Similar to the weekly process today, First Data will receive a daily Sponsored Merchant Response file which contains either an “N” or “Y” within each error flag field to indicate if the data provided was accepted or not. All fields with an “N” must be updated within the next day’s outgoing file or as soon as reasonably possible to avoid non-compliance fees.

• First Data will also receive a daily Seller Cancelled Derogatory report, which will either be empty or contain any accounts identified with a derogatory status

• Both files received from American Express must be worked on a daily basis to prevent increased volume and out-of-sync conditions between American Express and First Data. Failure to do so may result in the previous impacts, including assessment of non-compliance fees for failure to meet program mandates.

175



• Client-facing reporting will be updated as follows: • Omaha weekly reports will now change to daily and the IDs will be updated as

shown below: • Amex Sponsor Report - MW-833 will now be MD-833 • Amex Sponsor Response Report - MW-834 will now be MD-834 • Amex Opt Blue Derogatory Report - MW-835 will now be MD-835

• North reporting will contain the additional columns for the new fields within the spreadsheet format daily*

*Response files for Friday and Sunday dates will be labeled with each date separately but sent in the notification on Monday or next business day following a holiday

176



177




Direct Omaha

System Impacts • All applicable reporting will be updated with new fields and error flags as identified • File transmissions for the outgoing Sponsored Merchant File and incoming Sponsored

Merchant Response file and Seller Cancelled Derogatory file will be updated from weekly to daily

Business Impacts • Clients must be aware of the new status fields and values contained in the Sponsored

Merchant File as well as the frequency change from weekly to daily



Airline Industry TAA Changes

178

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

As a continuation from the 2015 Spring Release, First Data will build a new American Express Transaction Advice Addendum (TAA) record (to the First Data North platform only). • The Airline TAA is used to report additional descriptive details for

the Airline Industry • This information may become part of the descriptive bill on the

Card member's statement or be used to resolve billing inquiries and disputes

Additionally, First Data will be required to certify with American Express in support of enhanced Internet related data and Airline related data at authorization.


179


Field Name Description

10 IPTR-PTSAAI-TRAN-TYPE

This field contains the Transaction Type code assigned to this transaction. Valid codes include: TKT = Ticket Purchase REF = Refund EXC = Exchange Ticket MSC = Miscellaneous (non-Ticket Purchase- and non-Exchange Ticket-related transactions only)

10 IPTR-PTSAAI-TCKT-NUM Ticket or document number printed on the source document.

10 IPTR-PTSAAI-DOC-TYPE

This field contains the airline Document Type code, which indicates the purpose of this transaction. This information may appear on the descriptive bill on the Card member's statement, or be used to resolve billing inquiries and disputes.



180

Field Name Description

10 IPTR-PTSAAI-PROC-ID

This field contains the Airline Process Identifier, which is the IATA* Carrier Code of the airline that sold and ticketed the travel; or if the travel was sold through a travel agency, the airline on which the travel will predominantly be conducted.

10 IPTR-PTSAAI-IATA-NUM-CD This field contains the IATA* Numeric Code (a.k.a., IATA Travel Agency Identifier Code) for the travel agency where the ticket booking was made.

10 IPTR-PTSAAI-TCKT-CARR-NAME This field contains the Ticketing Carrier Name, which is the name of the airline carrier that generated the tickets for airline travel.

10 IPTR-PTSAAI-TCKT-ISSUE-CT This field contains the Ticket Issue City name, which is the name of the city, town or village where the transaction took place.

10 IPTR-PTSAAI-TCKT-ISSUE-DT This field contains the Ticket Issue Date.

10 IPTR-PTSAAI-NUM-IN-PARTY This field contains a value that corresponds to the number of people in the party.

10 IPTR-PTSAAI-PASSNGR-NAME This field contains the Passenger Name.



181





Direct Omaha

System Impacts • Applicable First Data Systems will be updated to support the new TAA addendum • Applicable First Data Systems will be updated to support Internet and Airline (ITD/APD)

enhanced authorization format Business Impacts • Clients must be aware of the new TAA record for merchants in the Airline Industry • Clients must be aware of the new ITD/APD enhanced authorization requirements



Discover Authorization Declines

182

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Discover authorization interface requires the authorization messages to support information regarding the purchase of goods or services between the Merchants/Acquirers and Issuers. • Minimally, the 0100 Authorization Request carries information

detailing the Card Number, Card Acceptor, and when and how the card transaction occurred

• As part of the 0100 Authorization Request message, Discover requires Field 32 Acquiring Institution Identification code:

• This field identifies the unique number assigned by Discover to the Merchant/Acquirer/ATM Network

• The six digit Acquirer Institution Identifier should be included in the Merchant Master File setup


• The Acquiring Institution Identification must be present on the merchant account in all applicable authorization and settlement systems, merchant profiles, and repositories

• Failure to provide the Acquiring Institution Identification Field 33 in the 0100 authorization message will result in a merchant decline message “03” Invalid Merchant.

• Note: Discover acquirer identification numbers are assigned a 65 prefix for the North platform and a 62 prefix for Omaha. First Data Payments Acceptance registers these identification numbers with Visa as a secondary network for stand-in authorizations.

183



184




North/PTS Proprietary South/PTS HDC Direct Memphis OmniPay Omaha Buypass

Direct System Impacts • No impact, this is a BAU process Business Impacts • Business Channels will need to be aware that merchant setup must include

Acquiring Institution Identification on all applicable profiles, authorization and settlement systems and repositories

• Business Channels will need to be aware that failure to comply with proper boarding procedures for Discover Full Acquiring may result in declined authorizations and loss of sales



Acquirer Fee Revision

185

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Effective with the Spring 2016 Release, Discover has announced revisions to the Acquirer Fees and Merchant Funds Disbursement.

Description Existing Fee New Fee

Data Usage Charge (U.S. Acquirers) $0.0185 $0.0195

Revised Data Usage Charge (Mexico, Caribbean and Central America)

$0.0185 $0.0195

International Processing Fee (U.S., Mexico, Caribbean and Central America)

0.40% 0.50%

International Service Fee (U.S.) 0.55% 0.80%

Acquirer Assessment (U.S.) 0.110% 0.130%


Acquirer Fee Revision • Channels will need to update the rates on the fee outlet and fee global files at the

merchant level for the following transaction codes: • 22E - Data usage charge from $0.0185 to $0.0195

• Calculated based on data on the miscellaneous billing files. (Miscellaneous fee): • 22G - Discover International Processing Fee from 0.40% to .50% of the gross amount of Card

Sales and Cash Advance • 22H – Discover International Service Fee from 0.55% to 0.80% of the gross amount of Card Sales

and Cash Advance

• Payments Acceptance will publish a rate change notification to the business channels advising of new rates to the wholesale billing drivers in MAPS for

• AF03DU = Discover Data Usage Fee • AF03AIS = Discover Acquirer Fee Allocation (includes the Int’l Processing Fee & Int’l Service Fee)

• The Wholesale Billing group will update the MAPS rates based on the notification to the business channels

• Business Owners must submit separate projects to support the increased acquirer assessment rate

186



187


Platform Summary of Changes Modified By

North

The existing fee sequence code 6AC Dues and Assessment Fee should be modified to support the fee increase: • The existing fee code 234 will use the fee rate from the 900 table to support the

modified rate

Business Channel

South The Trans Code - 303 Dues and Assessment Fee will be updated to support the fee Business Channel

North The 900 table and plan code 999 will be updated to support the fee increase for IC Plus Merchants FD Systems

Memphis

The Interchange Plus Merchant Pricing Tables will be modified to support the fee increase • Pass –Thru rate table will be modified to support the fee increase • For Non-Pass Thru merchants, the portfolio will determine strategy for the increase

FD Systems

Proprietary Existing MAS code 0108 – All DS-MAP Bill Codes will be modified to support the fee increase FD Systems

Omaha Non mons 512 – Dues and Assessment Volume Percentage and 513- Ticket Charge Rate will be updated to support the fee increase FD Systems

First Data will support changes to the Acquirer Assessment fee for the platforms below:


188




North/PTS Proprietary South/PTS HDC Direct Memphis OmniPay

Omaha Buypass Direct

System Impacts • First Data systems will be updated to support the modified fees • Interchange will add the modified International Processing Fee of 0.50% to Plan Code

211 • Interchange will add the modified International Service Fee of 0.80% to Plan Code 210 • Payments Acceptance will update the Plan Code documentation with the revised rates Business Impacts • Clients will need to update the rates on the fee outlet and fee global files at the merchant

level • Clients must be aware of the increased Acquirer fees



Processing Codes - 13 & 15

189

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Buypass is adding support for recurring processing codes 13 and 15. • Processing Code 13 - Recurring Payments (goods & services)

• Address verification required • Processing Code 15 – Installment Payments (goods & services)

• Installment - Defined period of time

Note: Processing Code 14 (recurring billing) is already supported. Processing Code 16 (subscriptions) is under review to determine if business case can substantiate need for development.



190

Dscvr AIPC Rate Discover Fee Program


290 1.49% DSCVR CPSL RECURRING PAY PD A04 A04 N/A N/A N/A N/A N/A

289 1.20% DSCVR CPSL RECURRING PAY DB B04 B04 N/A N/A N/A N/A N/A

275 2.10% DSCVR CPSL RECURRING PAY PP L04 L04 N/A N/A N/A N/A N/A

282 2.20% DSCVR CPSL CM RECURRING PAY M04 M04 N/A N/A N/A N/A N/A

268 1.70% DSCVR CPSL RECURRING PAY PR P04 P04 N/A N/A N/A N/A N/A

261 1.45% DSCVR CPSL RECURRING PAY RW R04 R04 N/A N/A N/A N/A N/A

100 1.20% + $0.05 DSCVR PSL RECURRING PMTS RW 004 004 004 RQ 100 N/A N/A

139 1.20% + $0.05 DSCVR PSL RECURRING PMTS PR 104 104 104 RR 139 N/A N/A

157 1.20% + $0.05 DSCVR PSL RECURRING PMTS CR 304 304 304 RP 157 N/A N/A

208 1.80% + $0.05 DSCVR PSL RECURRING PMTS PP 404 404 404 RE 208 N/A N/A

The following plan codes and associated rates will be updated:



191

Dscvr AIPC Rate Discover Fee Program



101 1.20% + $0.05 DSCVR PSL RECURRING PMTS DB 604 604 604 RZ 101 N/A N/A

366 0.05% + $0.22 DSCVR-RECURRINGREG(DB) 728 728 728 R0 366 N/A N/A

452 0.05% + $0.21 DSCVR-RECURRINGNOREG(DB) 745 745 745 E4 452 N/A N/A

335 1.20% + $0.05 DSCVR RECURRPYMNTS(PP) 804 804 804 RA 335 N/A N/A

392 0.05% + $0.22 DSCVR-RECURRINGREG(PP) 828 828 828 R2 392 N/A N/A

453 0.05% + $0.21 DSCVR-RECURRINGNOREGD(PP) 845 845 845 BV 453 N/A N/A


The following plan codes and associated rates will be updated:



192





Compass


Direct

System Impacts • Buypass FE to add support for data field 3 – processing codes 13 & 15 and pass the

processing codes to all appropriate settlement streams • Products should pass value of “R” for recurring and prompt for AVS and CID • Chargebacks should use “AP” (Automatic Payments) for dispositions Business Impacts • Clients will be responsible for reviewing internal reports to identify impacted merchants

within their portfolio • Portfolios will need to review their merchant base and make changes as needed



New Chip Card POS Entry Mode

193

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Discover announced a new POS Entry Mode, 86 – Contactless Interface Change, to identify when a Chip Card transaction with a dual interface card switches from a contactless Chip Card transaction to a contact Chip Card transaction. Within the authorization interface, the new value will be supported in Data Field 22 – Point of Sale (POS) Entry Mode in positions 1-2. Within the clearing interface, the new value will be supported in: • Field 18 – Point of Sale (POS) Entry Mode, positions 154-155 • Supplementary Data Record (SDR) 13 - Chip Card Addendum,

Sequence 1


The Acquirer Reporting Interface (ARI) will be updated to support the new value in the Accepted Detail-Card Transactions Record via a new field, Field 37, positions 368-370. • Existing POS Entry Modes will also be supported via this newly added field

The Acquirer Interchange will be updated to reflect the following AIPC programs to allow for the new value of “86”.

194


U.S. Programs PSL - Recurring PSL - Express Services PSL - Restaurants

PSL - Hotels/Car Rentals PSL - Petroleum Commercial Electronic

PSL - Passenger Transport

PSL - Retail International Electronic

PSL - Supermarkets/Warehouses



The new value of “86” has additionally been added as an option for the Track Data Condition Code for Card Present Card Sales.

The following First Data plan codes will be updated to support qualification for the new entry mode.

195

Canada Programs CPSL - Recurring CPSL - Express

Services Commercial Hotels/Car Rentals

International Electronic

CPSL - Hotels/Car Rentals CPSL - Petroleum Commercial Passenger Transport

CPSL - Passenger Transport

CPSL - Retail

Commercial Supermarkets/Warehouses

CPSL - Supermarkets/Warehouses

Commercial Recurring Payments

Commercial Petroleum

Mexico, Caribbean and Central America Programs International Electronic



196


AIPC Rate Acquirer Fee Program First Data Platform Specific Codes


100 1.20% + $0.05 PSL - Recurring Payments (Rewards)

004 004 004 RQ 100 N/A N/A

157 1.20% + $0.05 PSL - Recurring Payments (Core)

304 304 304 RP 157 N/A N/A

208 1.80% + $0.05 PSL - Recurring Payments (Premium Plus)

404 404 404 RE 208 N/A N/A

101 1.20% + $0.05 PSL - Recurring Payments (Debit)

604 604 604 RZ 101 N/A N/A

366 0.05% + $0.22 PSL - Recurring Payments (Debit with Fraud Fee)

728 728 728 R0 366 N/A N/A

452 0.05% + $0.21 PSL – Recurring Payments (Debit without Fraud Fee)

745 745 745 BT 452 N/A N/A

335 1.20% + $0.05 PSL - Recurring Payments (Prepaid)

804 804 804 RA 335 N/A N/A

392 0.05% + $0.22 PSL - Recurring Payments (Prepaid with Fraud Fee)

828 828 828 R2 392 N/A N/A

453 0.05% + $0.21 Recurring Payments (Prepaid without Fraud Fee)

845 845 845 E5 453 N/A N/A



197




102 1.65% + $0.05 PSL - Supermarkets/Warehouse Clubs (Rewards)

005 005 005 SP 102 N/A N/A

141 1.65% + $0.05 PSL - Supermarkets/Warehouse Clubs (Premium)

105 105 105 SQ 141 N/A N/A

159 1.40% + $0.05 PSL - Supermarkets/Warehouse Clubs (Core)

305 305 305 SK 159 N/A N/A

212 1.90% + $0.10 PSL - Supermarkets/Warehouse Clubs (Premium Plus)

405 405 405 SM 212 N/A N/A

103 1.10% + $0.16 PSL - Supermarkets/Warehouse Clubs (Debit)

605 605 605 SZ 103 N/A N/A

342 1.10% + $0.16 PSL - Supermarkets/Warehouse Clubs (Prepaid)

805 805 805 SA 342 N/A N/A

103 0.00% + $0.36 PSL - Supermarkets/Warehouse Clubs (Debit) (CAP)

627 627 627 SC 103 N/A N/A

373 0.05% + $0.22 PSL - Supermarkets/Warehouse Clubs (Debit with Fraud Fee)

732 732 732 S2 373 N/A N/A

452 0.05% + $0.21 PSL - Supermarkets/Warehouse Clubs (Debit without Fraud Fee)

749 749 749 BT 452 N/A N/A

342 0.00% + $0.36 PSL - Supermarkets/Warehouse Clubs (Prepaid) (CAP)

827 827 827 SD 342 N/A N/A

399 0.05% + $0.22 PSL - Supermarkets/Warehouse Clubs (Prepaid with Fraud Fee)

832 832 832 S8 399 N/A N/A

453 0.05% + $0.21 PSL - Supermarkets/Warehouse Clubs (Prepaid without Fraud)

849 849 849 E5 453 N/A N/A



198




108 1.95% + $0.00 PSL - Express Services (Rewards)

008 008 008 TL 108 N/A N/A

144 1.95% + $0.00 PSL - Express Services (Premium)

108 108 108 TQ 144 N/A N/A

162 1.95% + $0.00 PSL - Express Services (Core) 308 308 308 TK 162 N/A N/A

215 2.05% + $0.00 PSL - Express Services (Premium Plus)

408 408 408 TE 215 N/A N/A

109 1.80% + $0.00 PSL - Express Services (Debit) 608 608 608 TZ 109 N/A N/A 345 1.80% + $0.00 PSL - Express Services

(Prepaid) 808 808 808 TA 345 N/A N/A

376 0.05% + $0.22 PSL - Express Services (Debit with Fraud Fee)

735 735 735 T1 376 N/A N/A

452 0.05% + $0.21 PSL - Express Services (Debit without Fraud Fee)

752 752 752 BT 452 N/A N/A

402 0.05% + $0.22 PSL - Express Services (Prepaid with Fraud Fee)

835 835 835 T3 402 N/A N/A

453 0.05% + $0.21 PSL - Express Services (Prepaid without Fraud Fee)

852 852 852 BV 453 N/A N/A



199




110 1.73% + $0.05 PSL - Petroleum (Rewards) 009 009 009 PQ 110 N/A N/A

145 1.73% + $0.05 PSL - Petroleum (Premium) 109 109 109 PY 145 N/A N/A

163 1.55% + $0.05 PSL - Petroleum (Core) 309 309 309 PP 163 N/A N/A

216 1.73% + $0.05 PSL - Petroleum (Premium Plus)

409 409 409 PM 216 N/A N/A

111 0.76% + $0.16 PSL - Petroleum (Debit) 609 609 609 PZ 111 N/A N/A

346 0.76% + $0.16 PSL - Petroleum (Prepaid) 809 809 809 PA 346 N/A N/A 377 0.05% + $0.22 PSL - Petroleum (Debit with

Fraud Fee) 736 736 736 P2 377 N/A N/A

452 0.05% + $0.21 PSL - Petroleum (Debit without Fraud Fee)

753 753 753 BT 452 N/A N/A

403 0.05% + $0.22 PSL - Petroleum (Prepaid with Fraud Fee)

836 836 836 P4 403 N/A N/A

453 0.05% + $0.21 PSL - Petroleum (Prepaid without Fraud Fee)

853 853 853 BV 453 N/A N/A



200




112 1.71% + $0.10 PSL - Retail (Rewards) 010 010 010 GI 112 N/A N/A

146 1.71% + $0.10 PSL - Retail (Premium) 110 110 110 GJ 146 N/A N/A

164 1.56% + $0.10 PSL - Retail (Core) 310 310 310 GM 164 N/A N/A

217 2.10% + $0.10 PSL - Retail (Premium Plus) 410 410 410 GE 217 N/A N/A

113 1.10% + $0.16 PSL - Retail (Debit) 610 610 610 GZ 113 N/A N/A

350 1.10% + $0.16 PSL - Retail (Prepaid) 810 810 810 GA 350 N/A N/A

381 0.05% + $0.22 PSL - Retail (Debit with Fraud Fee)

737 737 737 GC 381 N/A N/A

452 0.05% + $0.21 PSL - Retail (Debit without Fraud Fee)

754 754 754 BT 452 N/A N/A

407 0.05% + $0.22 PSL - Retail (Prepaid with Fraud Fee)

837 837 837 G8 407 N/A N/A

453 0.05% + $0.21 PSL - Retail (Prepaid without Fraud Fee)

854 854 854 BV 453 N/A N/A



201




114 1.90% + $0.10 PSL - Restaurants (Rewards) 011 011 011 FR 114 N/A N/A

147 2.20% + $0.10 PSL - Restaurants (Premium) 111 111 111 FP 147 N/A N/A

165 1.56% + $0.10 PSL - Restaurants (Core) 311 311 311 FQ 165 N/A N/A

218 2.30% + $0.10 PSL - Restaurants (Premium Plus)

411 411 411 FE 218 N/A N/A

115 1.10% + $0.16 PSL - Restaurants (Debit) 611 611 611 FZ 115 N/A N/A

351 1.10% + $0.16 PSL - Restaurants (Prepaid) 811 811 811 FA 351 N/A N/A

382 0.05% + $0.22 PSL - Restaurants (Debit with Fraud Fee)

738 738 738 FC 382 N/A N/A

452 0.05% + $0.21

PSL - Restaurants (Debit without Fraud Fee)

755 755 755 BT 452 N/A N/A

408 0.05% + $0.22 PSL - Restaurants (Prepaid with Fraud Fee)

838 838 838 FG 408 N/A N/A

453 0.05% + $0.21 PSL - Restaurants (Prepaid without Fraud Fee)

855 855 855 BV 453 N/A N/A



202




116 1.90% + $0.10 PSL - Hotels/Car Rentals (Rewards)

012 012 012 HQ 116 N/A N/A

148 2.30% + $0.10 PSL - Hotels/Car Rentals (Premium)

112 112 112 HR 148 N/A N/A

166 1.58% + $0.10 PSL - Hotels/Car Rentals (Core) 312 312 312 HL 166 N/A N/A

219 2.30% + $0.10 PSL - Hotels/Car Rentals (Premium Plus)

412 412 412 HO 219 N/A N/A

117 1.35% + $0.16 PSL - Hotels/Car Rentals (Debit) 612 612 612 HZ 117 N/A N/A

352 1.35% + $0.16 PSL - Hotels/Car Rentals (Prepaid)

812 812 812 HP 352 N/A N/A

383 0.05% + $0.22 PSL - Hotels/Car Rentals (Debit with Fraud Fee)

739 739 739 V0 383 N/A N/A

452 0.05% + $0.21 PSL - Hotels/Car Rentals (Debit without Fraud Fee)

756 756 756 BT 452 N/A N/A

409 0.05% + $0.22 PSL - Hotels/Car Rentals (Prepaid with Fraud Fee)

839 839 839 V2 409 N/A N/A

453 0.05% + $0.21 PSL - Hotels/Car Rentals (Prepaid without Fraud Fee)

856 856 856 BV 453 N/A N/A



203




118 1.90% + $0.10 PSL - Passenger Transport (Rewards)

013 013 013 N/A 118 N/A N/A

149 2.30% + $0.10 PSL - Passenger Transport (Premium)

113 113 113 N/A 149 N/A N/A

167 1.75% + $0.10 PSL - Passenger Transport (Core)

313 313 313 N/A 167 N/A N/A

220 2.30% + $0.10 PSL - Passenger Transport (Premium Plus)

413 413 413 N/A 220 N/A N/A

119 1.59% + $0.16 PSL - Passenger Transport (Debit)

613 613 613 N/A 119 N/A N/A

353 1.59% + $0.16 PSL - Passenger Transport (Prepaid)

813 813 813 N/A 353 N/A N/A

384 0.05% + $0.22 PSL - Passenger Transport Debit with Fraud Fee)

740 740 740 N/A 384 N/A N/A

452 0.05% + $0.21 PSL - Passenger Transport (Debit without Fraud Fee)

757 757 757 N/A 452 N/A N/A

410 0.05% + $0.22 PSL - Passenger Transport (Prepaid with Fraud Fee)

840 840 840 N/A 410 N/A N/A

453 0.05% + $0.21 PSL - Passenger Transport (Prepaid without Fraud Fee)

857 857 857 BV 453 N/A N/A



204




124 2.30% + $0.10 Commercial Electronic - Passenger Transport

200 200 200 DF 124 N/A N/A

124 2.30% + $0.10 Commercial Electronic – Emerging Markets

201 201 201 DF 124 N/A N/A

124 2.30% + $0.10 Commercial Electronic - All Others 202 202 202 DF 124 N/A N/A

428 2.30% + $0.10 Commercial Electronic – Passenger Transport (Debit)

630 630 630 G4 428 N/A N/A

428 2.30% + $0.10 Commercial Electronic – Emerging Markets (Debit)

631 631 631 G4 428 N/A N/A

428 2.30% + $0.10 Commercial Electronic - All Others (Debit)

632 632 632 G4 428 N/A N/A

361 2.30% + $0.10 Commercial Electronic - Passenger Transport (Prepaid)

221 221 221 GF 361 N/A N/A

361 2.30% + $0.10 Commercial Electronic – Emerging Markets (Prepaid)

227 227 227 GF 361 N/A N/A

361 2.30% + $0.10 Commercial Electronic - All Others (Prepaid)

228 228 228 GF 361 N/A N/A

423 0.05% + $0.22 Commercial Electronic (Debit with Fraud Fee)

764 764 764 G2 423 N/A N/A

454 0.05% + $0.21 Commercial Electronic (Debit without Fraud Fee)

768 768 768 BW 454 N/A N/A

418 0.05% + $0.22 Commercial Electronic (Prepaid with Fraud Fee)

864 864 864 G5 418 N/A N/A

455 0.05% + $0.21 Commercial Electronic (Prepaid without Fraud Fee)

868 868 868 CI 455 N/A N/A



205



261 1.45% + $0.00 CPSL - Recurring Payments (Core/Rewards)

R04 R04 N/A N/A N/A N/A N/A

268 1.70% + $0.00 CPSL - Recurring Payments (Premium)

P04 P04 N/A N/A N/A N/A N/A

275 2.10% + $0.00 CPSL - Recurring Payments (Premium Plus)

L04 L04 N/A N/A N/A N/A N/A

289 1.20% + $0.00 CPSL - Recurring Payments (Signature Debit)

B04 B04 N/A N/A N/A N/A N/A

290 1.49% + $0.00 CPSL - Recurring Payments (Prepaid)

A04 A04 N/A N/A N/A N/A N/A

The following Canadian programs are impacted by this change:



206



262 1.42% + $0.00 CPSL - Supermarkets/Warehouse Clubs (Core/Rewards)


269 1.65% + $0.00 CPSL - Supermarkets/Warehouse Clubs (Premium)


276 2.00% + $0.00 CPSL - Supermarkets/Warehouse Clubs (Premium Plus)


323 1.20% + $0.00 CPSL - Supermarkets/Warehouse Clubs (Signature Debit)


328 1.49% + $0.00 CPSL - Supermarkets/Warehouse Clubs (Prepaid)




207



263 1.27% + $0.00 CPSL - Petroleum - (Core/Rewards)


270 1.70% + $0.00 CPSL - Petroleum (Premium) P09 P09 N/A N/A N/A N/A N/A

277 2.10% + $0.00 CPSL - Petroleum (Premium Plus)


324 1.70% + $0.00 CPSL - Petroleum (Signature Debit)


329 1.45% + $0.00 CPSL - Petroleum (Prepaid) A09 A09 N/A N/A N/A N/A N/A 264 1.60% + $0.00 CPSL - Retail (Core/Rewards) R10 R10 N/A N/A N/A N/A N/A 271 1.98% + $0.00 CPSL - Retail (Premium) P10 P10 N/A N/A N/A N/A N/A 278 2.25% + $0.00 CPSL - Retail (Premium Plus) L10 L10 N/A N/A N/A N/A N/A 325 1.20% + $0.00 CPSL - Retail (Signature Debit) B10 B10 N/A N/A N/A N/A N/A 330 1.49% + $0.00 CPSL - Retail (Prepaid) A10 A10 N/A N/A N/A N/A N/A



208

AIPC Rate Acquirer Fee Program First Data Platform Specific Codes North South Memphis Proprietary Omaha OmniPay MSIP

265 1.67% + $0.00 CPSL - Hotels/Car Rentals (Rewards)


272 2.05% + $0.00 CPSL - Hotels/Car Rentals (Premium)


279 2.40% + $0.00 CPSL - Hotels/Car Rentals (Premium Plus)


326 1.20% + $0.00 CPSL - Hotels/Car Rentals (Signature Debit)


331 1.49% + $0.00 CPSL - Hotels/Car Rentals (Prepaid)


266 1.67% + $0.00 CPSL - Passenger Transport (Core/Rewards)


273 2.03% + $0.00 CPSL - Passenger Transport (Premium)


280 2.35% + $0.00 CPSL - Passenger Transport (Premium Plus)


327 1.20% + $0.00 CPSL Passenger Transport (Signature Debit)


332 1.49% + $0.00 CPSL - Passenger Transport (Prepaid)


835 1.20% + $0.00 International Electronic (Canada)

I11 I11 N/A N/A N/A N/A N/A



209

Authorization Product Authorization Specs Retrievals / Chargebacks Billing Reporting Clearing Revenue Settlement Specs Other



Compass


Memphis OmniPay


System Impacts • Authorization platforms will be able to accept the value of “86” in positions 1-2 of Field 22 • Settlement platforms will be able to accept the value of “86” in positions 154-155 of Field 22 • The ARI will be updated to support the new Field 37 and report the new value of “86” • The First Data plancodes will be updated to reflect support of the new value • Appropriate back off tools and reporting will updated with support for the new entry mode of 86 • Settlement fee sequence codes will be updated to support the new POS Entry mode 86 on the

transaction for correct fee billing to occur Business Impacts • Business Channels will need to be aware of the new POS Entry Mode for Contactless Transactions

that switch to a Contact Transaction


POS Data Code Changes for Authorization and Clearing

210

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

In the Fall of 2013, Discover introduced functionality in support of Mobile Payment devices, including the value of “M” as a Capability Indicator within the Point of Sale (POS) Data Code field of the authorization and sales data interfaces. The capability indicators designate how a merchant captures card data. Effective with the Spring 2016 release, Discover is moving the Mobile POS value to a new position within the POS Data Code field that is currently reserved for future use. First Data systems and specifications will be updated to reflect the appropriate values to provide for the authorization and clearing records, including the value of “M” for Mobile Payment devices.


Changes for Authorization field 61 - Point of Sale (POS) Data Code include:

• Position 10 will be renamed to “POS Type of Terminal Device” • Valid values are:

• 0 Unspecified (default); Use-An existing “zero-fill” value for this position, now presented in a table format with all available options

• 9 Unknown; Use-for example, if Merchant Processor does not know whether the Merchant supports a mobile type of POS Device

• M Mobile POS; Use-A new identifier for a Mobile POS Device

• Value of “M” will be removed as a valid option from position 11 - Card Data Terminal Input Capability Indicator. Existing values will remain.

• Specifications will be updated to reflect the changes above for field 61 - POS Data Code, positions 10 and 11

211



212

Please reference the chart below for valid values within positions 10 and 11 of field 61-POS Data Code:

Field 61 – POS (Point of Sale) Data Code

Position Name Valid Values

10 POS Type of Terminal • 0 – Unspecified • 9 – Unknown • M – Mobile POS

11 Card Data Terminal Input Capability Indicator

• 0 - Unspecified • 1 – No terminal (POS device) used (voice/ARU authorization) • 2 – Magnetic stripe reader • 3 – Bar Code/Payment Code • 4 – Optical Character Recognition • 5 – Integrated Circuit Card Reader • 6 – Key entry only (manual) • 7 – Magnetic stripe reader and key entry • C – Radio Frequency Identification (RFID) - Chip • H – Hybrid; Integrated Circuit Card Reader & contactless capabilities • R – Radio Frequency • S – Secure Electronic Transaction (SET) with certificate • T – SET without certificate • U – Channel-encrypted Electronic Commerce Transaction (SSL) • V – Non-secure Electronic Commerce Transaction



Changes for Sales Data field 22 - Point of Sale (POS) Data Code include:

• Position 176 will be renamed from “Reserved” to “POS Type of Terminal Device” • Valid values are:

• 0 = Unspecified (default); Use-An existing “zero-fill” value for this position, now presented in a table format with all available options

• 9 = Unknown; Use-for example, if Merchant Processor does not know whether the Merchant supports a mobile type of POS Device

• M = Mobile POS; A new identifier for a Mobile POS Device

• Value of “M” will be removed as a valid option from position 177-Card Data Terminal Input Capability Indicator. Existing values will remain.

• Specifications will be updated to reflect the changes above

213



214

Please reference the chart below for valid values within positions 176 and 177 of field 22 – POS Data Code:

Field 22 - Point of Sale (POS) Data Code Position Name Valid Values

176 POS Type of Terminal • 0 – Unspecified • 9 – Unknown • M – Mobile POS

177 Card Data Terminal Input Capability Indicator

• 0 – Unspecified • 1 – No terminal (POS device) used (voice/ARU authorization) • 2 – Magnetic stripe reader • 3 – Bar Code/Payment Code • 4 – Optical Character Recognition • 5 – Integrated Circuit Card Reader • 6 – Key entry only (manual) • 7 – Magnetic stripe reader and key entry • C – Radio Frequency Identification (RFID) - Chip • H – Hybrid; Integrated Circuit Card Reader & contactless capabilities • R – Radio Frequency Identification (RFID) – Magnetic Stripe • S – Secure Electronic Transaction (SET) with certificate • T – SET without certificate • U – Channel-encrypted Electronic Commerce Transaction (SSL) • V – Non-secure Electronic Commerce Transaction



215






Direct System Impacts • Applicable authorization and clearing platforms will need to support new value (9, M) and

update existing validation rules as applicable • First Data go-forward specifications will be updated to reflect the mandated changes • First Data reporting tools will be updated to display the new field names and values as

provided Business Impacts • Clients must be aware of the changes and communicate as appropriate • Business Owners with merchants processing via third party software must be aware of

these changes



Inbound Registration Source File

216

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Discover will add five new Business Types to Field 37- Business Type Description, of the Inbound Registration Source File.

Field 37

Business Type Description Value Definition

U Unlimited Liability Corporation

O Co-Operatives

B Associations

R Registered Charities

T Trust


217





Direct

System Impacts • First Data Systems will be updated to ensure the newly added business type

descriptions are included in the Merchant Registration Process/Merchant Profile Registration File

Business Impacts • Clients should be aware of the new business type descriptions

Inbound Registration Source File


Version Indicator Change

218

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Effective with the Spring 2015 release, Discover has revised the Header Record table, Field 6 – Version Indicator from 03141 to 03161 as well as revised the Format Values in the Header Record section - Version Indicator to 03161. Note: Change only applicable on the Omaha Platform.

Field Name

Field Length Field Type Contents Field

Position Description

Version Indicator 5 Byte fixed Alphanumeric Mandatory 69-73 Valid Values 03161


219




North/PTS Proprietary South/PTS HDC Direct Memphis OmniPay


System Impacts • First Data Omaha systems will be updated to support the new version indicator Business Impacts • Clients must be aware of the new version indicator for Omaha (Informational only for all

other platforms)

Version Indicator Change


New Merchant Category Code (MCC)

220

BRD Section(s) D-COMM.1 Cheryl Small

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

Discover added a new Merchant Category Code (MCC):

MCC Descriptor 3833 Canopy


221





Memphis OmniPay Omaha Buypass

Direct

System Impacts • Reports categorized by MCC will be modified to reflect new MCC 3833 - Canopy • First Data boarding tools will be updated with new MCC 3833 - Canopy Business Impacts • Clients will be responsible for reviewing internal reports to identify impacted merchants

within their portfolio • Portfolios will need to review their merchant base and make changes as needed

New Merchant Category Code (MCC)


Discover Merchant Profile Registration

222

Mandatory

Elective

US

International

Authorization

Clearing

Back Office

Other

16.1

As outlined in the Discover Acquirer Operating Regulations, following the Acquirer’s entry into a merchant agreement with a merchant, but prior to the card acceptance by the merchant, the acquirer must register the merchant with Discover under the requirements outlined in the Discover Merchant Profile Registration Interface and the Discover Technical Specification Common Appendices. • As described in Appendix F of the Operating Regulations, a fee in

the amount of $15 USD will be assessed per missing merchant profile, where you submit a sales data record on behalf of a Merchant without a corresponding merchant profile registration record

• Please note that additional noncompliance fees may be assessed if you do not submit a Merchant Profile Registration before submitting additional Sales Data for such Merchant

• Discover collects these Noncompliance Fees from the Acquirer as defined on the Acquirer Registration form or offset settlement amounts otherwise payable to First Data, in our discretion, as set forth in the Operating Regulations


Discover Merchant Profile Registration • Merchants that are converted from another portfolio must have the

Acquirer ID changed via Merchant Profile Registration file as a record type “03” or a new Discover SE number and Acquirer ID must be assigned on the new platform • Discover SE Number prefixes for the Full Acquiring program are assigned by

platform. These numbers are not portable across platforms or clients. • When the Discover entitlement is removed, it cannot be added back the same day.

Clients must wait 2 business days to ensure the internal edits do not drop the account prior to adding the entitlement back.

• All address information must be valid and meet www.USPS.com standards

223

http://www.usps.com/


Discover Merchant Profile Registration

224




Direct

System Impacts • No impact, this is a BAU process Business Impacts • Business Channels will need to be aware of this change for merchants purchased from

another processor and ensure their merchant accounts are properly boarded • Business Channels will need to be aware that failure to comply with proper boarding

procedures for Discover Full Acquiring may result in noncompliance fines: • $15 per unregistered account • Possible fine of up to $100,000 per month due to mismatch of registration data versus

authorization and settlement data over a 2% threshold if not cured within a year of the initial notice


Acronyms

225


226

Acronym Definitions Acronymn Definition

ABU Automatic Billing Updater

ABV Acquirer Brand Volume Fee

AEVV American Express Verification Value

AFD Automated Fuel Dispenser

AFT Account Funding Transaction

AIPC Acquirer Interchange Program Category

ALM Account-Level Management

AP Automatic Payments

ARI Acquirer Reporting Interface

BAI Business Application Identifiers

BINs Bank Identification Numbers

BNDES MasterCard Brazilian Development Bank

CDF Cash Disbursement Fee


227


CID Card Identifier

COF Card-On-File

CVM Cardholder Verification Method

ECI Electronic Commerce Indicator

ECOM E-Commerce Transactions

FFI Form Factor Indicator

FPI Fee Program Indicator

FTP File Transfer Protocol

GCAG Global Credit Authorization Guid

GCMS Global Clearing Management System

HCE Host Card Emulation

IAF International Acquiring Fee

IASF International Acquirer Service Fee

IATA Travel Agency Identifier Code


228


IRD Interchange Rate Designator

ISO International Organization for Standardization

MBF Merchant Brand Fee

MCC Merchant Catergory Code

MDES MasterCard Digital Enablement Service

MDG Gold Debit MasterCard product

MOTO Mail/Phone Order

MST Magnetic Secure Transmission

MVV Merchant Verification Value

NFC Near Field Communications

OCT Original Credit Transactions

OFD Open File Delivery

PCF Product Control File

POS Point Of Sale


229


SE Secure Element

STIP Stand-In Processing

TAA Transaction Advice Addendum

TLV Tag-Length-Value

UCAF Universal Cardholder Authentication Field

V.I.P VisaNet Integrated Payment

VAU Visa Account Updater

VCPS Visa Contactless Payment Specification

VEPS Visa Easy Payment Service

VEReq Verification Requests

VSS VisaNet Settlement Service

Thank you.

Documents

16.1 Payment Brand and Other Industry Changes