Fall Release 2011

MasterCard® Worldwide OPERATIONAL and RATE CHANGES

I. MasterCard Secure Code Liability Shift — Effective with transactions processed on or after October 15, 2011, MasterCard will shift the fraud liability for fraud related chargeback reason codes 37 (No Cardholder Authorization) and 63 (Cardholder Does Not Recognize / Potential Fraud) from the merchant to the card issuer for properly identified MasterCard Secure Code authentication attempts for U.S. domestic (U.S. merchant / U.S. issued card) consumer credit card transactions. Today, the liability shift for properly identified U.S. domestic consumer credit card transactions is applicable to fully authenticated Secure Code transactions. This change will align with the benefits Secure Code enabled merchants receive today when accepting consumer cards issued outside of the U.S. Region. Commercial card transactions remain ineligible for the liability shift.

II. MasterCard/Maestro Authorization Data Accuracy Initiative — Effective with transactions settled on or after October 15, 2011, MasterCard will begin data accuracy monitoring of transaction level data submitted in both authorization and settlement to assist with improved fraud detection for both MasterCard credit (including signature debit) and Maestro pin debit transactions. As part of the monitoring that will take place, the most notable field that MasterCard will begin monitoring is the terminal identifier. MasterCard requires all card present transactions contain a unique terminal identifier when a merchant location has multiple POS devices at a single location, including cardholder activated terminal devices such as automated fuel dispensers (AFD). Action required for all card present merchants: If your business has multiple POS devices in a single location and you believe that your merchant location may not be compliant with this requirement, please work with your vendor to obtain a unique terminal ID for each POS device used.

III. MasterCard Debit Regulatory Interchange Modifications — Effective with transactions settled on or after October 1, 2011, MasterCard will modify its debit interchange structure in support of the Dodd-Frank Wall Street Reform and Consumer Protection Act by creating new interchange programs applicable to regulated debit transactions.

Visa® U.S.A., Inc. OPERATIONAL and RATE CHANGES

I. Visa U.S. Small Business Product Platform Expansion — Effective with transactions settled on or after October 15, 2011, Visa will expand the existing business card product offering to include two (2) new business card products: Visa Signature Business and Visa Business Enhanced. As a result, Visa will modify the existing business card interchange rate structure and implement new interchange rate programs.

II. New Visa Charity Interchange Fee Program — Effective with transactions settled on or after October 15, 2011, Visa will introduce a new Charity credit card interchange rate program applicable to credit, rewards, Visa Signature and Visa Signature Preferred Card products. Qualified transactions originating from merchants utilizing MCC 8398 (Charitable and social service organizations) will be eligible for this new fee program.

III. Visa Debit Regulatory Interchange Modifications — Effective with transactions settled on or after October 1, 2011, Visa will implement debit interchange modifications in support of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

IV. Visa Prepaid Interchange Modifications — Effective with transactions settled on or after October 1, 2011, Visa will implement new U.S. domestic interchange rates for non-regulated consumer prepaid card transactions. The new interchange rates will apply to non-regulated prepaid cards issued in the U.S. and accepted at U.S. merchant locations meeting the following criteria: U.S. domestic jurisdiction and Non-regulated Prepaid Card Products of General Purpose, Prepaid Gift, and Prepaid Healthcare.

V. CPS/Small Ticket Debit Program Expansion — Effective with transactions settled on or after October 1, 2011, Visa will extend the CPS/Small Ticket debit interchange rate to include the following merchant categories: Grocery Stores and Supermarkets (5411), Convenience Stores (5499), and Service Stations (5541). Automated Fuel Dispensers remain ineligible.

VI. CPS/Retail 2 Debit Program Expansion — Effective with transactions settled on or after October 1, 2011, Visa will extend the CPS/Retail 2 debit interchange rate to include Real Estate Agents and Managers: Rentals (MCC 6513) and Telecommunication Services (MCC 4814).

VII. Visa Transaction Receipt Retention Timeframe Increased — Effective for transactions processed on or after October 15, 2011, Visa will increase the transaction receipt retention timeframe from 12 months to 13 months. For merchants processing healthcare transactions, the transaction receipt retention period of 5 years remains unchanged. As a result of this change, you may receive retrieval requests for up to 13 months from the original transaction date. Please ensure that all retrieval requests are fulfilled promptly to preserve chargeback rights.

VIII. Visa Changes for Unattended Cardholder Activated Transactions — Effective with transactions settled on or after October 15, 2011, Visa will eliminate unattended cardholder activated transaction (UCAT) indicators of one (1) “limited amount terminal” and two (2) “Unattended Terminal – ATM” in the U.S. Region as all credit card transactions above zero dollars must be authorized. As a result, the $50 transaction amount maximum applicable to UCAT transactions with the exception of automated fuel dispenser transactions will be eliminated. As of the effective date, all UCAT transactions must be identified with the value of three (3) “Self Service / Automated Dispensing Machines”. Action required if a UCAT device is used (i.e. Kiosk, Vending machine, etc): You may need to contact your UCAT POS vendor to ensure the appropriate UCAT indicator (value of a 3) is supported. As a reminder, any transaction settled without the required authorization may incur integrity fees as well as authorization related chargebacks.

IX. Visa New Card Acceptance Process for Magnetic Stripe Failures at the Point of Sale — Effective with transactions settled on or after October 15, 2011 , Visa will allow U.S. card present merchants who experience magnetic stripe failures at the point of sale to prove the card was present with the submission of CVV2 in the authorization request. This will replace the manual imprint that is currently required today for key entered magnetic stripe failures. CVV2 is often referred to as the 3 digit security code that appears on the back of a Visa credit card following the card number printed on the signature panel. When the following conditions are met, participating merchants will receive chargeback protection associated with chargeback reason code 81 “Fraud – Card Present Environment”: U.S. merchant/ U.S. card issuer, must be a keyed face to face sale, CVV2 must be included in the electronic authorization request, and the transaction is not associated with gambling (MCC 7995), quasi-cash, manual cash disbursements, or cash back. As a reminder, the CVV2 value should never be printed, recorded, or retained.

Discover® OPERATIONAL and RATE CHANGES

I. Discover Debit Regulatory Interchange Modifications — Effective with transactions settled on or after October 1, 2011, Discover will implement debit interchange modifications in support of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Receipt Truncation Requirements

If your terminal is not compliant with applicable federal and state law as well as Card Organization rules, your business may be subject to significant fines or other penalties. The receipt you provide to a customer may not include the customer’s card expiration date or any more than the last four digits of the customer’s card number. In addition, some states, as well as Visa and MasterCard have similar laws and requirements that apply to the receipt your business retains. If you believe that your terminal needs to be upgraded to comply with these requirements, please call your Relationship Manager.

PCI PED & Triple DES (PIN encryption)

Visa/Interlink announced a mandate requiring all merchants accepting debit cards to use a PIN entry device (PED) that supports enhanced encryption, referred to as Triple DES (Data Encryption Standard), by July 1, 2010. As a result of this mandate, all PIN entry devices considered non-compliant will need to be replaced with a compliant PIN entry device. If your PIN entry device has not been replaced within the last two years, please call your Relationship Manager.

Other Information

Please note that the Card Organizations have made changes to their interchange programs and rates. Effective October 1, 2011 (unless otherwise stated), the interchange rates for credit card and non-PIN (signature) debit card transactions applied to your account will be as set forth in both the “Interchange Rate/Fee Schedule” and the “Interchange Qualification Matrix” found on http://www.merchantinsider.com/merchantresources/interchangefeeschedules. The particular interchange rate applied to your transactions will depend on how your transactions qualify. Due to changes in the rate structure and qualification criteria for the various Card Organizations, you may incur an increase in interchange costs and fees beginning on your October statement that you receive in November. Please refer to “RSA MVD F11 2 IC Actual IC” for the “Interchange Rate/Fee Schedule” which describes the interchange fees and requirements beginning in October. The second document, titled "Interchange Qualification Matrix", provides a description of the various interchange levels established by the various payment card brands, as well as the primary qualification criteria for each interchange level, and similar information related to PIN debit networks.