Fall Release 2008

Explanation

Periodically throughout the year, Visa and MasterCard evaluate their processes and regulations. These changes apply to all bank-card processors and may impact the fees and rates you incur to accept payments by credit and debit cards.

MasterCard Change to Chargeback Process

Revised Standards for First Presentment Time Frames - Effective for transactions with a processing date of October 4, 2008 and later, MasterCard will require all electronically processed transactions (swiped or keyed) be submitted for processing within seven calendar days from the transaction date. Currently the time frame allows for 30 days. Electronically processed transactions submitted after seven days will be subject to late-presentment chargebacks. This change will decrease the time the issuer holds the funds on a cardholder's account. Please ensure that you submit your transactions for settlement in a timely manner to avoid late-presentment chargebacks.

Data Security Requirements Reminder

Visa and MasterCard require that all merchants maintain compliance with the Payment Card Industry Data Security Standards (PCI DSS). The card associations (Visa and MasterCard) are very serious about data security. Merchant fines and assessments resulting from a breach can easily reach more than $1 million if your customers' credit card data is lost or stolen. Association fines alone can be as much as $500,000 per association. This is in addition to repayment of subsequent fraud and card reissuance costs. Assessing your risk and validating compliance can be accomplished using an approved security assessor/scan vendor who can guide you through the process. The following Web sites contain valuable information:

• www.pcisecuritystandards.org - Includes a complete list of PCI DSS requirements, the self-assessment questionnaire and approved security assessors/scan vendors
• www.visa.com/cisp - Additional compliance and validation information, and lists of validated payments applications and compliant service providers
• www.mastercard.com/sdp - Additional compliance and validation information

Visa Rate Revisions

Visa introduced rate revisions specific to commercial cards and Automated Fuel Dispenser and Retail Service Station interchange programs. Two documents were released. The first document, titled "Important Information About Your Fees," contains important information about the interchange fees associated with your account. The second document, titled "Interchange Qualification Matrix," provides a description of the various interchange levels established by the various card associations, as well as the primary qualification criteria for each interchange level, and similar information related to PIN debit networks.

Discover Rate Revisions

Discover introduced rate revisions to several of their interchange programs. Two documents were released. The first document, titled "Important Information About Your Fees," contains important information about the interchange fees associated with your account. The second document, titled "Interchange Qualification Matrix," provides a description of the various interchange levels established by the various card associations, as well as the primary qualification criteria for each interchange level, and similar information related to PIN debit networks.

Should you have additional questions regarding this Fall Release 2008, please contact us by using our Fall Release 2008 contact form.