ANZ Merchant Business SolutionsANZ FASTPAY MERCHANT OPERATING GUIDE

1ContentsGetting Started Welcome to ANZ 2 How to Contact Us 2 How to Get ANZ FastPay 2 How to Get your ANZ FastPay App Set Up and Ready To Go 3 Your Key Responsibilities 4 Which Cards Should you Accept? 5 Security Checks to Validate a Nominated Card 5 ‘Card Present’ Transactions 7 How to Process Card Present Transactions using the ANZ FastPay Card Reader 7 Authorisation 8 Settlement Procedures 8 Monthly Merchant Statement 9 Transaction Receipt 10 Frequently Asked Questions 11

Fraud Protection and Chargebacks Fraud Protection and Minimisation Tips 13 Protecting Account and Transaction Information 15 Securing your Device 16 Chargebacks 17

2 –3Getting StartedWelcome to ANZThis ANZ FastPay Merchant Operating Guide is provided to help you become familiar with the operation of ANZ FastPay and the acceptance of Visa and MasterCard Credit, Debit and Prepaid Cards.

We recommend that you and your staff read this guide thoroughly, along with the ANZ FastPay User Guide (which you’ll receive with your ANZ FastPay card reader) and keep it accessible for future reference.

The ANZ FastPay Merchant Operating Guide forms part of your Merchant Agreement with us for ANZ FastPay and may be varied or replaced by us from time to time. Terms defined in the ANZ FastPay Terms and Conditions have the same meaning when used in this ANZ FastPay Merchant Operating Guide.

How to Contact UsFor service, financial or general enquiries:

Call ANZ Merchant Business Solutions on 0800 249 435.

If you are calling from overseas please dial 00644 802 2777.

Email nzmerchantbusiness@anz.com.

Send a letter to:

ANZ Merchant Business Solutions PO Box 2211 Wellington 6140

How to Get ANZ FastPay1. Download the ANZ FastPay app from the App Store or Google Play.2. Open the app and choose ‘Apply Now’.3. Complete the ANZ FastPay application form and submit it to ANZ.4. If your Application is approved, we will send you an email containing your Merchant

Agreement. Within 24 hours of your approval, you will receive a text with your activation code, followed by your ANZ FastPay card reader 3 business days later.

5. When you have received your activation code and ANZ FastPay card reader, you will be able to log in to ANZ FastPay for the first time. Follow the instructions in the ANZ FastPay User Guide that comes with the ANZ FastPay card reader, and the instructions within the ANZ FastPay app. You will be prompted to set a four digit secure Personal Identification Number (PIN).

6. You can now use ANZ FastPay to accept Visa and MasterCard payments from your customers.

How to Get your ANZ FastPay App Set Up and Ready to GoWhen your ANZ FastPay card reader is fully charged and you’re ready to use ANZ FastPay, connect your ANZ FastPay card reader to your smartphone or tablet by inserting the audio jack into the headphone socket.

If you have a cover on your smartphone or tablet, you may need to remove it.

Make sure that the side with the ANZ logo is facing the same way as your screen, and the PIN pad is sitting along the back of your smartphone or tablet.

The ANZ FastPay card reader should sit flush with your smartphone – it shouldn’t hang over one side.

Depending on what smartphone you own, the ANZ FastPay card reader will either sit at the top or bottom.

When you connect the ANZ FastPay card reader to your smartphone or tablet:

• Avoid exposure to water and other liquids.• Avoid lateral movement of the ANZ FastPay card reader as this can break the headphone

jack or the ANZ FastPay card reader.

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Your Key ResponsibilitiesThe tasks and procedures detailed below and in this ANZ FastPay Merchant Operating Guide must be completed for you and your staff to fulfil your responsibilities as a Merchant:

• Follow all the instructions in this ANZ FastPay Merchant Operating Guide.• Only process Card Present Transactions (see page 7 for more detail). • Check your Merchant Service Fee on your monthly Merchant Statement regularly to

ensure you are paying the correct rate.• Accept and validate all valid Nominated Cards presented for payment – see page 5 for

more detail.• Follow the correct Authorisation procedures.• Ensure the Cardholder authorises all Credit Card Transactions by using a Personal

Identification Number (PIN) or by signature.• Do not split a single Transaction into two or more Transactions.• Do not give cash out with Transactions (including refunds).• Do not impose a minimum or maximum amount on Transactions.• Retain paper or electronic records of all Transactions for 18 months or until such later

date on which you have no further business or legal reason for retaining the information. These must be kept in a secure place and destroyed after 18 months – see page 17 for more detail.

• Be alert to possible Credit Card fraud and report all instances – see page 13 for more detail.• Complete all Transactions in New Zealand dollars only. • Protect account and Transaction information on your Electronic Device and your ANZ

FastPay card reader by conforming to the requirements outlined on pages 15 and 16.• If a Card is accidentally left behind in your Premises, you must: – retain the Card in a safe place for a period of two Business Days; and – hand the Card to the claimant only after having established the claimant’s identity

by comparing signatures with another Card in the claimants possession; or – if not claimed within two Business Days, cut the Card in half and send it to the

Card Issuer.

Which Cards Should You Accept?With ANZ FastPay, you can accept all Visa and MasterCard Credit, Debit and Prepaid Cards as payment for your goods and/or services.

You must accept all valid Nominated Cards bearing any Visa or MasterCard logos without restriction on the amount of the Transaction. If you are applying a Surcharge Fee to Visa or MasterCard Credit Card Transactions, you must advise the Cardholder and give them a chance to opt-out before processing the Transaction. You must also follow the procedures set out in Clause 3, 4 and 5 of the ANZ FastPay Terms and Conditions.

Security Checks to Validate a Nominated Card The following checks must be made to ensure a Nominated Card is valid and can be accepted for payment. Failure to recognise a fraudulent card could result in a Chargeback (disputed transaction) and a loss to your business.

Most Credit Cards have the card details embossed on them • Embossing should be even with all numbers the same size and shape. 1• Ensure the card expiry date has not passed. 2• Ensure the Cardholder name is present and does not look like it has been tampered

with. 3• Ensure the name on the card match any other information provided.

Note: Visa and MasterCard cards without embossing usually have the words “Electronic Use Only” printed on them and must only be processed as an Electronic Transaction using your ANZ FastPay card reader.

Check that there is a four digit number printed below the card number• Even if scratched this number cannot be removed.• Check it matches the first four digits of the card number. 4

Note: Applicable to Visa only

Hologram• Visa: Flying Dove. 5• MasterCard: Interlocking Globes.

Card numbers• These start with a ‘4’ for Visa or a ‘5’ for MasterCard.

Signature panel• You will also notice there are three additional numbers on the signature panel, known as

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the Card Security Code. These numbers are needed for mall, telephone or Internet order transactions and are not needed for ANZ FastPay payments. 6

• Check that there is a signature and no evidence of tampering. 7

Magnetic stripe• Check the card has a magnetic stripe on the reverse. 8

If the Nominated Card is suspicious in any way or you notice any discrepancy, please phone the Credit Card Authorisation Centre on 0800 741 100 and advise them that you would like a “Code 10 Authorisation”. The Authorisation Officer will ask you questions requiring ’yes’ or ’no’ answers.

‘Card Present’ TransactionsTransactions are to be ‘Card Present’ Transactions.

A Card Present Transaction is where the Cardholder and their Nominated Card are present during the Transaction at your Premises or place of business. Card Present Transactions can be processed via ANZ FastPay using the ANZ FastPay card reader.

How to Process Card Present Transactions using the ANZ FastPay Card Reader• Validate the Nominated Card by performing the security checks described on page 5.• Enter the type of Transaction into the ANZ FastPay card reader and the amount and

then press enter. Process the Transaction by inserting the Cardholder’s card into the ANZ FastPay card reader and leave the card inserted until the ANZ FastPay app says ‘remove card’.

• The Cardholder authorises the Transaction by using a Personal Identification Number (PIN) or by signature.

• If a PIN is used and the Transaction is successfully authorised, an ‘accepted’ message will appear on the ANZ FastPay app.

• If a PIN is not used and the Transaction is successfully authorised, an ‘accepted with signature’ message will appear on the ANZ FastPay app. When the Cardholder provides their signature, you must check the signature matches that on the back of the card.

• If a ‘declined’ message appears on the ANZ FastPay app ask the Cardholder for an alternative form of payment or retain the goods.

• If the ‘declined’ message tells you to retain the card, please do so, if this can be done safely at your discretion. Then phone the Credit Card Authorisation Centre on 0800 741 100.

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Authorisation All Card Transactions must be authorised. An Authorisation is our confirmation that, at the time at which a Transaction is processed, the Card has not been reported lost or stolen or blocked for use, and that there are sufficient funds available to cover the cost of the Transaction. An Authorisation does not guarantee payment. If at a later date the Transaction is found to be an Invalid Transaction it may be charged back to you. See page 17 for more information on Chargebacks.

Card Present Transactions require the Cardholder to enter a Personal Identification Number (PIN) into the ANZ FastPay app or provide a signature.

Please note:

• Authorisation of the Transaction does not mean that the true Cardholder has authorised the Transaction.

• Authorisation does not protect you from Chargebacks.• ANZ cannot guarantee that a Transaction has been conducted by the true Cardholder.

Settlement ProceduresSettlement is the term used to describe the transfer of funds into your ANZ Settlement Bank Account. ANZ FastPay transactions must be settled to an ANZ account.

We deposit the amount of your Transactions from Visa and MasterCard Credit, Debit and Prepaid Cards in your Nominated Settlement Bank Account. The table below shows when you will receive your settlement funds.

Settlement timings or when will your funds appear into your Nominated Settlement Bank Account?

Monday – Friday before 10.00pm Funds processed overnight, available next morning

Monday – Thursday after 10.00pm Funds processed the following night, available the next morning

Friday after 10.00pm and weekends Funds available from 10.00am Monday morning

Monthly Merchant Statement You will be sent a Merchant Statement at the end of each month. The Merchant Statement details all Credit Card Transactions you have processed in the month. It also shows the Merchant Service Fee amount due. This is the fee we charge for processing your Credit Card Transactions. Your Merchant Service Fee is debited from your Nominated Charges Bank Account on the 12th of each month for the previous months’ Transactions. A sample of the Merchant Statement is shown below.

ANZ Bank New Zealand Limited A0472 10/12 Page 1 of 1

Merchant Statement

Freephone: 0800 473 453Facsimile: 0800 491 301

Statement Period 01 SEP 15 to 30 SEP 15Statement Date 01 OCT 15

Merchant Number 061234567

Fee Summary ABC ENTERPRISES Merchant Fee $56.80

PO BOX 5 MARION SQUARE WELLINGTON 6141

Amount charged to your current account 01-1234-0078915-01 as of 12 OCT 15 is $56.80

Summary of card transaction for merchant number 061234567 No. ofSales

Amount ofSales

No. ofRefunds

Amount ofRefunds

NetSales

Fee MerchantFee

VISA 6 $1,288.99 0 $0.00 $1,288.99VISA TOTAL 6 $1,288.99 0 $0.00 $1,288.99 $38.67

MASTERCARD 3 $604.40 0 $0.00 $604.40MASTERCARD TOTAL 3 $604.40 0 $0.00 $604.40 $18.13

TOTAL 9 $1,893.39 0 $0.00 $1,893.39 3.00% $56.80

Daily Banking Summary Settled Date Settlement Type Amount02/09/2015 Electronic Settlement 350.4007/09/2015 Electronic Settlement 256.0014/09/2015 Electronic Settlement 263.4016/09/2015 Electronic Settlement 173.2021/09/2015 Electronic Settlement 444.6027/09/2015 Electronic Settlement 280.8930/09/2015 Electronic Settlement 124.90

10 –11Transaction ReceiptAfter your Transaction has been processed, you and the Cardholder (if they choose to) will be emailed a Transaction Receipt. It will be sent as a PDF attachment in an email. A Transaction Receipt must be provided to the Cardholder either by email or a manual receipt.

Frequently Asked QuestionsWhat does the monthly Merchant Service Fee cover?The Merchant Service Fee is paid to cover our costs for authorising and processing your Transactions and crediting the funds to your Nominated Settlement Bank Account. The Merchant Service Fee also covers costs for our Merchant Business Solutions Helpdesk to answer any queries you may have.

How is the Merchant Service Fee calculated? The Merchant Service Fee is a percentage of the total dollar value of Transactions processed for your business during the month.

Are the funds credited to our account guaranteed? If the Transaction has been properly authorised and is not charged back, we will credit cleared funds to your Nominated Settlement Bank Account. However, this payment may still be reversed later if a Chargeback event occurs or the Transaction is later discovered to be an Invalid Transaction. For details, refer to the section on Chargebacks – see page 17.

How can I change the merchant information I’ve provided to ANZ?If you need to change any of the information that you provided to us, call ANZ Merchant Business Solutions on 0800 249 435.

Who pays the cost if one of our employees uses a card fraudulently?Your business is financially responsible for all card fraud, whether carried out by an employee, a Cardholder or both in collusion. To reduce the risk, ensure the rules outlined in this guide are explained to staff, and follow the tips for detection in the section on fraud – see page 13.

Can I charge for processing?You can apply a Surcharge Fee to some or all Visa and MasterCard Credit Card Transactions. If applying a Surcharge Fee you must comply with the procedures set out in Clause 20 of the ANZ FastPay Terms and Conditions.

Can I give cash out with a card transaction?You must not provide cash to a customer on a Transaction under any circumstances.

How do I add Additional Users for ANZ FastPay?To set up Additional Users for ANZ FastPay to accept payments into the same Nominated Settlement Bank Account, please contact ANZ Merchant Business Solutions on 0800 249 435. Please note additional fees will apply.

Transaction on Receipt Number 01/08/2015 07:06:54 AM 150801070654

ANZ FastPay NZD $250.00

Merchant Copy

Merchant Details……………………………………………………………………. Merchant Trading Name Merchant City Merchant Country ABC Enterprises Wellington New Zealand

Merchant Contact Details GST Number +64211234567

Transaction Details…………………………………………………………………. TSP Item Description Card Name 301234000001 Sink repair – John Smith ANZ VISA

Card Type Card Number Transaction Type VISA **** **** **** 1234 Purchase

Transaction Status Account Type Authorisation Code Approved Credit 085123

Response Code Verification Method RID 000 PIN A000000003

PIX TC TVR 1010 AC1B00565656DA4F 0000048000

TSI E800

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Can I use ANZ FastPay overseas?No. ANZ FastPay can only be used to process Transactions in New Zealand dollars for goods and services supplied in New Zealand.

Can I accept overseas Credit Cards?Yes. ANZ FastPay can complete a Transaction on any Credit Card linked through the MasterCard and Visa card networks.

How many characters can be typed into the message field of a payment or refund?30

Do I have a daily refund limit?Yes, you are able to refund up to $1,000 per day.

How will I receive a copy of my receipts?Transaction Receipts are automatically emailed to you after every Transaction. You can also send an email receipt to your customers (the Cardholders).

What format will receipts be in?Receipts are in PDF printable format for convenience. Cardholders must be notified that Transaction Receipts are provided by email. Alternatively the Merchant copy may be printed and sent to the Cardholder. Should the Cardholders not accept email receipt or a printed copy, they may choose to continue with the Transaction or pay with another form of payment.

Fraud Protection and ChargebacksFraud Protection and Minimisation TipsFraud can be committed by persons using stolen Card details, employees or both in collusion and can cause significant financial and reputational loss for your business. Your business is liable for all Card fraud committed through ANZ FastPay.

If a Transaction turns out to be fraudulent, it may be charged back to you and it could end up costing your business more than the original sale. High Chargeback levels can also attract penalties from the Nominated Card Schemes including fines and could result in the termination of your ANZ FastPay facility.

The more you know about the potential risks, the more you’ll be able to protect your business against fraud and costly Chargebacks.

In providing you with suggestions on how to reduce the risk of fraudulent Transactions in your business, we make no representation as to the effectiveness of those suggestions or guarantee a reduction in or protection from fraudulent Transactions.

‘Card Present’ transaction fraudAs ANZ FastPay can only be used to process Card Present Transactions, the recommended steps below can help you identify and reduce the risk of Card Present Transaction fraud in your business.

Individuals using Credit Cards fraudulently in Card Present Transactions often behave unusually. While the following behaviours do not necessarily indicate criminal activity, be alert for customers that:

• Make indiscriminate purchases without regard to size, colour or price.• Are unnecessarily talkative or delay a selection repeatedly, until you’re flustered.• Hurry you at closing time.• Purchase an extended warranty without hesitation even though it may be costly.• Refuse clothing alterations even though they are included in the price of the garment.• Makes purchases, leave the store, and return a short while later to make additional

purchases.• Pull the Credit Card out of a pocket rather than a wallet.

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Always use common sense as your guide but if you are suspicious of a customer’s Card call the Credit Card Authorisation Centre on 0800 741 100 and select the suspicious card option. Ask for a “Code 10” authorisation and follow the operator’s instructions.

You should never make any physical attempt to prevent a suspicious customer from leaving your Premises, however where possible and at your discretion try and retain the suspicious Credit Card if this can be done safely. It is best to establish where the customer went to, and if using a motor vehicle, record the registration number and description of the vehicle. This information together with a full description of the customer and any associates should be written down as soon as possible.

A reward will be paid to you if you provide information relating to the successful prosecution of persons using stolen or counterfeit Cards.

• A reward of $150.00 will be paid for the recovery of a fraudulent Card as a result of a “code 10” authorisation request.

• A reward of $100.00 will be paid for the recovery of any Credit Card at the request of the Credit Card Authorisation Centre, or when directed to do so by the ANZ FastPay app.

Send all Cards recovered to:

ANZ Merchant Business SolutionsAttention: Manager Card FraudPO Box 2211Wellington 6140

Rewards will be paid upon receipt of confirmation from the Credit Card Authorisation Centre, or confirmation that the Police have been involved and have retained the Card as evidence. If you have CCTV evidence relating to Credit Card fraud you should contact the Credit Card Authorisation Centre, so it may be presented to the Police to support any charges against offenders.

Employee fraudBe alert to changes in employee behaviour or sudden evidence of an increase in their wealth and take the following steps to reduce the risks of employee fraud in your business.

• Do not allow the Electronic Device to be used by unauthorised persons.• Check your settlement amounts balance with the daily sales amounts (to check Refunds

are not being inappropriately received).• Be wary of staff taking cash sales and balancing by processing fraudulent Card Transactions.

Protecting Account and Transaction InformationIf you accept Credit Card details from your customers, you are responsible for ensuring that the customer’s payment details are secure at all times.

The Payment Card Industry Data Security Standard (PCI DSS) defines industry best practices for handling and protecting Credit Card details. All businesses that store, process or transmit Credit Card data must be compliant with the PCI DSS. The PCI DSS details what needs to be protected and/or made secure and provides you with a framework of how to control the risks and keep Credit Card details in your possession safe and secure. The aim of the standard is to ensure a business regardless of its size follows good business practice for processing, storing and transmitting Credit Card details.

You must:

1. Install and maintain a firewall configuration to protect Cardholder data. 2. Not use vendor-supplied defaults for system passwords and other security parameters. 3. Protect stored Cardholder data. 4. Encrypt transmission of Cardholder data across open, public networks. 5. Use and regularly update anti-virus software or programs. 6. Develop and maintain secure systems and applications. 7. Restrict access to Cardholder data by business need-to-know. 8. Assign a unique ID to each person with computer access. 9. Restrict physical access to Cardholder data. 10. Track and monitor all access to network resources and Cardholder data. 11. Regularly test security systems and processes. 12. Maintain a policy that addresses information security for employees and contractors.

A full copy of the latest PCI DSS is available online at: www.pcisecuritystandards.org.

Further information is also available from the following websites:

• www.mastercard.com/nz/merchant/en/security/what_can_do/SDP/merchant/index.html• www.visa-asia.com/ap/nz/merchants/riskmgmt/ais.shtml

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Securing your DeviceSecurity Security is important for both your business and your customers. That’s why you need a PIN to login to ANZ FastPay. We recommend that you:

• Log-out of ANZ FastPay whenever you’re not using it (ANZ FastPay automatically logs you out when it has not been used for 3 minutes).

• Place a security PIN or password on any smartphone or tablet you use with ANZ FastPay (this is a requirement for iOS 8 users).

• Look after your ANZ FastPay card reader carefully (more information below).

ANZ FastPay does not allow card or card PIN data to be stored on your smartphone, the ANZ FastPay app or the ANZ FastPay card reader.

By implementing the recommendations below, you can help protect your business, your customers and your reputation from Credit Card fraud or misuse on the ANZ FastPay app.

Always ensure that your Electronic Device and ANZ FastPay card reader are secure and under supervision during operating hours.

• You must not allow the Electronic Device or ANZ FastPay card reader to be used by unauthorised persons.

• You must not divulge Cardholder information (e.g. Card names or numbers).• When the Electronic Device is not in use, always ensure that you log out of the ANZ

FastPay app.• When not in use, you must ensure that your ANZ FastPay card reader is securely locked

away and not exposed to unauthorised access.• Inspect your ANZ FastPay card reader on a regular basis to ensure that it has not been

tampered with.

Contact ANZ Merchant Business Solutions on 0800 249 435 immediately if:

• Your ANZ FastPay card reader is missing.• Your ANZ FastPay app is recording incorrect Transaction Receipts or has incorrect details.• Your ANZ FastPay card reader is damaged or appears to have been tampered with.

Looking after your ANZ FastPay card readerYou must look after your ANZ FastPay card reader carefully to help keep it safe and secure.

If you lose or break your ANZ FastPay card reader, you must call us immediately on 0800 249 435. You will need to pay a replacement fee for us to provide you with a new one.

ANZ FastPay is only available to approved merchants who meet ANZ’s credit approval criteria and have an ANZ account. Terms, conditions and fees apply. Use of ANZ FastPay requires a cellular or wireless internet connection.

App Store is a service mark of Apple Inc., registered in the U.S. and other countries. Google Play is a registered trademark of Google Inc.

Chargebacks A Chargeback occurs when a Cardholder (or the Card Issuer) raises a dispute in connection with a Transaction processed by you. You and your business are financially liable for all Chargebacks. If the dispute is resolved in the favour of the Cardholder, the Transaction is charged back to you and the value is debited from your Nominated Settlement Bank Account. As the Merchant, you could possibly lose the value of the sale as well as incurring a Chargeback fee.

A Chargeback can occur up to 120 days from the date a Transaction is processed, or from the date the goods or services were expected to be received by the Cardholder. We require you to store all Transaction Receipts for 18 months after the Transaction processing date. After 18 months these should be destroyed and you should not seek to recover or reconstruct Cardholder data.

If a Cardholder approaches you disputing a Transaction and you are unable to resolve the issue, you should refer the Cardholder to their Card Issuer.

If a Transaction is disputed, the bank that holds the account of the Cardholder in question will notify us and we will notify you of the dispute. If our Transaction records cannot show sufficient proof of the Transaction, you will be notified of the problem in writing and asked to respond in writing within seven days with sufficient information to validate the Transaction.

If you fail to respond within seven days, cannot provide sufficient proof of the Transaction, or we find proof that you have breached your Merchant Agreement, the Transaction may be charged back to you. If you are subject to an excessive number of Chargebacks, we reserve the right to charge for the processing of these disputes.

The following list of Chargebacks includes but is not limited to, the most common reasons why a Transaction may be disputed by a Cardholder, thus becoming the subject of a Chargeback.

• Processing errors.• Unauthorised use of Card.• Unauthorised Transaction.• Invalid Card account number.• Incorrect Transaction amount.• Transactions performed on a lost or stolen Card.• Failing to respond to a retrieval request.• Goods not received by purchaser, wrong goods sent or goods are defective.

There are additional reasons why a Transaction may become the subject of a Chargeback, and these are determined from time to time by us and/or Visa and MasterCard.

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