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—cancel recurring transactions as soon as notification is received from the cardholder or as a chargeback, and issue the appropriate credit as needed to the cardholder in a timely manner, and —notify the cardholder within 10 days (domestic) and 15 days (international) in advance of each billing, allowing the cardholder time to cancel the transaction —American Express customers have the option to receive written notification of the recurring transaction at least (10) days prior to submitting, or any time the charge amount exceeds a maximum amount that has been set by the cardholder • if you are utilizing an electronic device to capture card data, swipe, dip or wave all card transactions through your electronic authorization device to capture cardholder information When applicable, ensure the displayed cardholder number matches the number on the card • You should avoid keying the card data into your electronic authorization device unless you are unable to capture the card data through one of the above methods If you do key the card data into your electronic authorization device, it is highly recommended that you also key in the three or four digit verification code Otherwise, you should, imprint the card using a valid imprinting device that will capture the embossed card and merchant information. You must write on the manually imprinted draft all pertinent information relating to the transaction (transaction date. dollar amount, authorization code and merchandise description) and obtain the cardholder signature if you are not participating in the No Signaure program Do not alter the imprint on the draft in any way. You are not protected from this type of chargeback by manually entering the information into the POS device NOTE: Do not imprint on the back of a signed sales draft. The imprint must be on the transaction document that contains all transaction elements to prove the card was present at the time of the transaction If you are not participating in the No Signature program • Obtain the cardholder signature for all transactions, ensure the signature on the sales draft matches the signature on the back of the card. • Process all transactions one time and do not batch out transactions multiple times • Educate staff on procedures to eliminate point of sale (POS) fraud Card Not Present Transactions: • Ensure delivery of the merchandise or services ordered to the cardholder • Participate in recommended fraud mitigation tools —Verified by Visa Program —Mastercard SecureCode —Address Verification Services (AVS) —Use of card verification code NOTE: While transactions utilizing these tools may still be disputed. the service may assist you with your decision to accept certain cards for payment • ensure you ship to the AVS confirmed address (bill to and ship to must match) • obtain authorization for all transactions • ensure merchant descriptor matches the name of the business and is displayed correctly on the cardholder statement • ensure descriptor includes correct business address and a valid customer service number • please refer to Appendix 2 for American Express fraud mitigation tools Chargebacks due to cardholder disputes Description Goods or services not received by the cardholder, Merchandise defective or not as described Likely scenario • Services were not provided or merchandise was not received by the cardholder • Cardholder was charged prior to merchandise being shipped or merchandise was not received by agreed upon delivery date or location • Cardholder received merchandise that was defective, damaged, or unsuited for the purpose sold, or did not match the description on the transaction documentationlverbal description presented at the time of purchase • Cardholder paid with an alternate means and their card was also billed for the same transaction • Cardholder canceled service or merchandise and their card was billed • Cardholder billed for a transaction that was not part of the original transaction document • Cardholder claims to have been sold counterfeit goods • Cardholder claims the merchant misrepresented the terms of sale Recommendations to reduce such risk of chargeback • provide Services or Merchandise as agreed upon and described to the cardholder. clearly indicate the expected delivery date on the sales receipt or invoice • contact the cardholder in writing if the merchandise or service cannot be provided or is delayed, and offer the cardholder the option to cancel if your internal policies allow • if the cardholder received defective merchandise or the merchandise received was not as described, resolve the issue with the cardholder at first contact • if the merchandise is being picked up by the cardholder, have them sign for the merchandise after inspecting that it was received in good condition CardCo2305 A TRUE COPY CERTIFICATION ON LAST PAGE J.R. SMITH, CLERK • do not charge the cardholder until the merchandise has been shipped, according to the agreed upon terms. and a signed Proof of Delivery from the cardholder is obtained • if unable to provide services or merchandise, issue a credit to the cardholder in a timely manner • accept only one form of payment per transaction Ensure the cardholder is only billed once per transaction • do not bill cardholder for loss, theft or damages unless authorized by the cardholder • ensure that a description of the service or merchandise provided is clearly defined Chargebacks due to processing errors Description Error was made when transaction was processed or it was billed incorrectly Likely scenario • the transaction was not deposited within the payments organization specified timeframe • the cardholder was issued a credit draft However, the transaction was processed as a sale • the transaction was to be processed in a currency other than the currency used to settle the transaction • the account number or transaction amount used in the transaction was incorrectly entered • a single transaction was processed more than once to the cardholder's account • the cardholder initially presented the card as payment for the transaction However the cardholder decided to use an alternate form of payment. • a limited amount or self-service terminal transaction was processed for an amount over the pre -determined limit Recommendations to reduce risk of chargeback • process all transactions within the payments organization specified timeframes • ensure all transactions are processed accurately and only one time • if a transaction was processed more than once, immediately issue voids transaction reversals or credits • ensure that credit transaction receipts are processed as credits and sale transaction receipts are processed as sales. • ensure all transactions received a valid authorization approval code prior to processing the transaction Also obtain a legible magnetic swipe or imprinted sales draft that is signed • do not alter transaction documentation or make any adjustments unless the cardholder has been contacted and agrees to modifications of the transaction amount • ensure limited amount, self-service and automated fuel dispenser terminals are set properly to conform to the predetermined limits Chargebacks due to non -receipt of information Description Failure to respond to a retrieval request or the cardholder does not recognize the transaction Likely scenario • the transaction documentation was not provided to fulfill the retrieval request • the retrieval request was fulfilled with an illegible sales draft or was an invalid fulfillment (incorrect sales draft or the sales draft did not contain required information that may include signature if you are not participating in the No Signature Required program) • the cardholder does not recognize or is unfamiliar with the transaction due to the merchant name or location not matching the name or location where the transaction took place Recommendations to reduce such risk of chargeback • provide a clear and legible copy of the sales draft that contains all required data elements within the required timeframe that is specified on the retrieval request • ensure that the most recognizable merchant name, location and customer service phone number is provided on all transactions • retain copies of all transaction documentation for the required timeframe that is specified by each payments organization • develop efficient methods to retrieve transaction documentation to maximize ability to fulfill requests 15. Suspect/Fraudulent Transactions If the card being presented or the behavior of the person presenting the card appears to be suspicious or you otherwise suspect fraud, you must immediately call the Voice Authorization Center and ask to speak to a Code 10 operator Answer all their questions and follow their instructions While not proof that a transaction is fraudulent, the following are some suggestions to assist you in preventing fraudulent transactions that could result in a chargeback Does the cardholder: • appear nervous/agitatedlhurned? • appear to be making indiscriminate purchases (for example, does not care how much an item costs the size, etc )9 14