Store Card

Store card is a payment financial card associated with a particular retailer or group of retail stores that can be used only for purchases from that retailer or group of stores.

Credit Card Processing Companies Downgrades

An important issue to understand when examining the merchant account agreement you receive from credit card processing companies is that it rarely involves a single transaction rate. In many of these pricing agreements you will find downgrade provisions, which cover transactions that are processed at a less favorable interchange fees for one reason or other. Much like the headline contracted rate, downgrades are based on the interchange rates published by Visa and MasterCard bi-annually. However, as downgrades are typically not reported in relation to the actual interchange, it is often very difficult to determine the exact reason these transactions were downgraded to begin with.

In many instances, retailers find that the number of downgraded transactions is greater than those falling under the lower, headline rate. While most credit card processing companies will report these downgrades in the monthly statements, they are often described in terms that often unique to the processor and unintelligible to most anyone else, with little indication as to the reason for the downgrade. Downgrades are typically reported as "Non-qualified" and "Mid-qualified."

According to the Visa's and MasterCard's publicly available interchange fee documentation, when a retailer issues a refund, the interchange fee it paid to the card issuer is most often reversed. To put it simply, the card issuers pay the credit card processing companies back. In reality, you only need to review the published interchange fee tables on Visa's and MasterCard's websites to get a better idea of what interchange they must be receiving as a result of the refund.

Despite the Associations' rules, retailers do not always receive the reversed fees. This typically happens because these retailers agree to a bundled discount rate as opposed to an interchange-plus based one.

So where did this refunded fee go? The card issuer returned the interchange to the credit card processing companies, which, at least in this case, did not forward it on to the retailer. It instead kept it as an additional fee. This kind of charge is often considered as a hidden fee. While this may be the case from a visibility point of view, you need to keep in mind that in most cases the retailer agreed to this type of rate when it accepted a discount rate based on gross sales. This practice does not run against the Associations' regulations, although it certainly falls into a gray area. Of course, this part of the discount billing affects only retailers with substantial refund levels or high average transaction amounts.

Processing Credit Cards at Restaurants

When it comes to processing credit cards at restaurants, most of your customers are expecting payment flexibility. This is why so many of them accept Visa, MasterCard and the other major brands.

Restaurant managers and personnel also understand the advantages that processing credit cards can bring. Whether it is a full service or a quick service restaurant(QSR), a card swipe at the point-of-sale (POS) terminal can facilitate a faster transaction that is both safe and reliable.

How Processing Credit Cards at Restaurants Is Done

Here are the basic payment processing procedures you need to comply with:

• Make sure you return the right bank card to the right consumer. During your establishment's busiest hours, credit card payments can quickly pile up. This is precisely why it is very important to double- and triple-check the card and transaction receipt information to ensure that they match up prior to returning them to the consumer.
• Do not assess a penalty charge if a customer does not show if they have made a reservation or for a cancellation without adequate disclosure. If you decide to impose some penalty fee for a cancellation of a reservation, you need to clearly and adequately disclose to the consumer your policy for cancellation. That way you would avoid any possible misunderstandings and possible future disputes.
• Take the right action in accordance with the issuer's authorization response, as follows:
  • Approved - ask the consumer to sign the transaction receipt and match the signatures.
  • Declined - return the card to the consumer and ask for another bank card.
  • Call - call your acquirer's authorization center and inform them that you received a "call" response.
  • Call Center - be prepared to answer the issuer's questions who may also ask to speak with the consumer.
  • Call Issuer - if the transaction is approved, write the authorization response code on the receipt. If it is declined, ask for another bank card.
  • Pick Up - retain the card if you can do so by peaceful means.
• Compare and match the card number. If your POS device does not ask you to key enter the last four digits of the account number, compare the number on the card to the one shown on the POS device or the receipt. If the numbers are not identical, you may have an invalid card.

Processing credit cards at restaurants is considered lower risk than at many other environments, but this is only the case if you follow industry-approved best practices.

(Read more here.)

Merchant Credit Card Account Dynamic Currency Conversion

Merchant credit card account Dynamic Currency Conversion (DCC) is an add-on service, which is offered by a retailer at the point of sale (POS) either through a third party agent or through its processing bank. DCC offers consumers the choice of paying for merchandise or services in their own country's billing currency, or to do so in the retailer's pricing currency.

In a standard DCC payment, the sale's price is converted from the merchant credit card account holder's pricing currency into some other currency, which is the "transaction currency." This is the consumer's own billing currency. This conversion is done at the checkout, before a payment processing services bank submits the transaction to the issuer for authorization. The sale's amount is based on the stated price in the retailer's pricing currency and converted at a rate that was agreed upon between the retailer and the cardholder, as well as any other charges assessed for currency conversion.

When facilitated correctly, DCC offers transparency for consumers. It enables a customer to see the sale's amount in both his or her own billing currency and the retailer's pricing currency. That way, the consumer knows precisely how much the merchandise or services cost, and is able to make value judgments in a quick and straightforward fashion.

DCC eliminates surprises, as the amount that is agreed to and validated by the consumer using either a PIN or signature at the checkout, is precisely the amount billed on his or her monthly card statement.

Merchant credit card account users that offer DCC to consumers typically have a high percentage of foreign customers - especially those in the travel and entertainment (T&E) industries, as well as at tourist destinations. DCC can also be made available in card-present and card-absent transactions. For both environments, a DCC payment must feature all of the following:

• Sale's amount of the merchandise or services sold in the retailer's local currency - including a currency symbol next to the amount.
• Currency exchange rate, adding any commission, if available.
• Final price in the payment currency, including the words "Transaction Currency" - as well as the currency symbol next to the amount.
• A disclaimer statement that:
• is clearly visible to the consumer and
• specifies that the consumer has been given a choice of payment in the merchant credit card account user's local currency, and that the customer understands that the currency choice is final.

(Learn more here.)

Novus Credit Card Processing Transaction Documentation Requirements

Novus credit card processing transaction documentation submitted by a merchant account provider or a retailer in response to a dispute notice must be compliant with the requirements stated below, as well as with the concrete requirements for each reason code.

All of the following data must be available:

• The card number (either the entire 16-digit card number or a truncated one where required by law).
• Quantity and a short description of the products or service bought, except for sales receipts which are not required to include this information.
• Total transaction amount, including sales tax, tip, etc.
• Transaction date.
• Authorization code.

Wherever Novus credit card processing transaction documentation is not required to include the quantity and a short description of the products or service bought, you could be required to provide documentation with this information to your acquirer in connection to a dispute.

In addition to the requirements listed above, sales receipts for swiped card transactions, including sales at self-service terminals but excluding ones at cardholder activated terminals (CATs) or in no-signature required sales, must feature the customer's authentic, legible signature that is identical with the signature on the back of the card used in the transaction.

Contactless Novus credit card processing sales and biometric transactions are considered swiped payments, provided that the latter are not subject to a chargeback to a processor or merchant because the authorization request did not provide CVV data.

In addition to the above requirements, documentation for key-entered transactions needs to include an imprint of the card.

For non-face-to-face transactions, the following information must be included:

• A note that the security code was included in the authorization request.
• A note that an address verification request was completed.
• A note that the processor or retailer obtained a proof of delivery from the courier service that shipped the products as instructed by the customer.

No-signature-required types of card transactions conducted by Novus credit card processing retailers, will not be subject to a dispute for failure to get the customer's signature on the sales Receipt if (a) the magnetic stripe data are transmitted to the acquirer with the authorization request, and (b) the sale's amount is $25.00 or lower.

In response to a ticket retrieval request for some types of payment transactions (for example sales conducted at CATs and Self-Service Terminals), the processor or retailer may provide a substitute transaction documentation that must contain all of the data listed above.

(Read more.)

American Credit Card Processing Quick Payment Service

Quick Payment Service (QPS) is an American credit card processing program offered by MasterCard for facilitating card acceptance in industries that were traditionally cash-based and speed is critical to the sale. Merchant banks take advantage from QPS by offering retailers faster checkout while still supporting card acceptance. QPS transactions are facilitated in a face-to-face setting in which account data are read electronically from the card.

Eligible American credit card processing account users vary by region, but include the following industries:

• Transportation - Commuter, Passenger, including Ferries and Bus Lines.
• Veterinary Services.
• Agricultural Cooperatives.
• Horticultural and Landscaping Services.
• General Contractors.
• Air Conditioning, Heating, and Plumbing Contractors.

Chargeback Protection

The chargeback protection amounts have been set out individually for each industry segment in the QPS program. Those equal to or lower than these amounts can be accepted as QPS transactions through the exceptions provided by the program. Payments above these amounts are facilitated like all other card transactions (in other words, the cardholder signature must be provided and a sales receipt must be printed out).

An adequately identified QPS payment equal to or lower than the applicable chargeback protection amount is insulated against chargebacks under these reason codes:

• 4801 - Requested Transaction Data Not Received.
• 4802 - Requested / Required Item Illegible or Missing.
• 4837 - No Cardholder Authorization.

The chargeback protection amounts for the QPS service are set in the local currency for most countries.

American Credit Card Processing QPS Requirements

• Authorization approval is required of all card-read payments.
• Merchant account users may elect not to get the customer's signature for adequately identified QPS payments. The personal identification number (PIN) requirements still apply.
• Providing a sales receipt to the customer is optional for QPS transactions, however retailers must provide one upon the customer's request.
• All POS systems must support electronic data capture.
• All American credit card processing providers that elect to participate in the QPS program must operate compliant terminals. The minimal QPS program terminal requirements are as listed below:
  • Mag-stripe-read capabilities.
  • Mod 10 check digit, validating the account number, and expiration date.
  • Automatic online routing for payments.
  • Display of authorization code.
  • Printing of receipts.
• QPS registration is not needed.
• The QPS service does not affect interchange fees and rates.

There is no downside in signing up for the QPS service and if you operate in one of the supported industries, you should contact your processor for details.

(Learn more here.)

Store Card

Store card is a payment card associated with a particular retailer or group of retail stores that can be used only for purchases from that retailer or group of stores.

Self-Service Terminal

Self-service terminal is a customer activated terminal, especially one including the functions both of delivering and paying for goods (for example, in an automatic fuel vending system).

Retail Sale Transaction

Retail sale transaction is the purchase of goods, services, or both, generally at a merchant establishment.

Retail Banking

Retail Banking is the part of a bank's operations providing services at its branches for small or individual account holders.