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CardCo2305 1 I
<br />A TRUE COPY
<br />CERTIFICATION ON LAST PAGE
<br />DO'S
<br />• do execute two separate sales drafts and obtain an authorization for each sales
<br />draft
<br />. do obtain an authorization for each transactrog- SMITH, CLERK
<br />• do include the recurring payment indicator in
<br />on each transaction date;
<br />• do indicate on each sales draft:
<br />each authorization request, and as
<br />applicable, each batch submission entry.
<br />–whether it is for the deposit or the balance of payment; and - the authorization
<br />• do indicate on the sales draft "Recurring Transaction" (or "P.O." for Mastercard
<br />transactions)
<br />date and approval code.
<br />• do submit and seek authorization of each delayed delivery transaction
<br />• for Discover Network and PayPal recurring transactions, do include a toll-free
<br />customer
<br />under the
<br />same merchant identification number and treat deposits on the card no differently
<br />service number that the cardholder can call to cancel his/her approval
<br />for the recurring transaction or to obtain other
<br />than you treat deposits on all other payment products.
<br />assistance relating to the recurring
<br />transaction.
<br />• do complete Address Verification for each "balance" authorization.
<br />• do obtain proof of delivery upon delivery of the services/merchandise
<br />• don't store a payment credential if either the first payment transaction or account
<br />purchased.
<br />verification is declined.
<br />DON'TS
<br />DON'TS
<br />. don't submit sales data to us relating to the "balance" until the goods have been
<br />completely delivered or the services fully
<br />• don't include partial payments for goods or services purchased in a single
<br />transaction.
<br />provided.
<br />If delivery occurs after the timeframes set out in section 19, you must obtain a new
<br />authorization for the unprocessed portion of the transaction
<br />• don't impose a finance charge in connection with the recurring transaction or
<br />order.
<br />prior to delivery. If thepreauthorized
<br />transaction is declined, contact the cardholder and request another form of payment.
<br />• don't complete a recurring transaction after receiving a cancellation notice from the
<br />For example: On January 1, a cardholder orders $2,200 worth of furniture and you
<br />cardholder or card issuing bank or after a request for authorization has been
<br />receive an authorization for the full amount; however, only a $200 deposit is
<br />denied.
<br />processed leaving a $2,000 balance remaining on the furniture. An authorization
<br />reversal must be processed for$2,000. When the goods are available to ship, the
<br />It is highly recommended that you obtain the three digit card verification code on the
<br />back of the card (or the four digit verification code on the front American
<br />$2,000 transaction balance must be reauthorized.
<br />of Express
<br />cards), include the number with the first authorization request. This is not required
<br />Advance payment charges
<br />for subsequent authorization requests.
<br />If you permit or require cardholders to make advance payment charges for the
<br />following types of goods or services, please follow the
<br />A positive authorization response for one recurring transaction is not a guarantee
<br />that any future recurring transaction authorization
<br />procedures set out in this
<br />section:
<br />request will be approved or paid.
<br />If the recurring transaction is renewed, must obtain from the
<br />• custom orders (for example, orders for goods to be manufactured to a customer's
<br />you cardholder a new
<br />written request for the continuation of such goods or services to be charged to the
<br />specifications);
<br />cardholder's account.
<br />• ticketing for events or entertainment (for example, sporting events, or concerts);
<br />• tuition, room, board, and other mandatory fees (for example, library or other
<br />If you or we have terminated your right to accept cards, you must not submit
<br />authorization requests or sales data for
<br />students services fees at universities);
<br />recurring transactions that are due after the
<br />date of such termination.
<br />• tickets for airlines, rail lines, cruise lines, lodging, and other travel -related services
<br />(for example, tours or guided expeditions); and
<br />For American Express transactions please also see Appendix 2.
<br />• vehicle rentals; or
<br />Stored payment credential transactions
<br />. in store merchandise not immediately available (for example, merchandise re-
<br />p
<br />purchased for an upcoming sale event
<br />If you store information (including, but not limited to, an account number or payment
<br />token) to process future purchases on behalf of the cardholder, follow
<br />or merchandise on layaway)
<br />For all advance payment transactions:
<br />the
<br />procedures set out in this section.
<br />• do state your full cancellation and refund policies;
<br />• do clearly disclose your intention to receive advance payment;
<br />DO'S
<br />• do include the appropriate data values:
<br />• before you request an authorization, do obtain written consent from the cardholder
<br />to bill the card for an advance payment charge;
<br />–when a payment credential is being stored for the first time,
<br />–is used to initiate a stored credential transaction,
<br />The cardholder's consent must include (1) a detailed description of the goods or
<br />–or is used to identify an unscheduled credentials on file transaction.
<br />• do submit a valid authorization if an amount is due
<br />services to be provided, and (2) his or her agreement to all of the terms of the sale
<br />(including price, any cancellation or refund policies), and the expected delivery date
<br />at the time the payment
<br />credential is being stored.
<br />do
<br />of the goods or services;
<br />. submit an authorization verification if no payment is due at the time the
<br />• do obtain an authorization approval;
<br />payment credential is being stored.
<br />• do complete a sales draft: and
<br />DON'TS
<br />• if you cannot deliver the goods or services (for example, because custom -ordered
<br />• don't store a payment credential if either the first payment transaction or account
<br />verification is declined.
<br />merchandise cannot be fulfilled) and cannot make other arrangements, do
<br />immediately issue a credit for the full amount of the advance
<br />Card checks
<br />payment charge.
<br />For Card Not Present transactions involving an advance payment:
<br />If you accept card checks, you must treat checks from all the payment organizations
<br />• do ensure that the sales draft contains the words "Advance Payment,'; and
<br />that you accept equally (for example, if you accept Mastercard and American
<br />Express, your check acceptance policy must treat checks for both these
<br />• within 24 hours of the advance charge being authorized, do provide the cardholder
<br />with written confirmation (for example, by email or facsimile) that advance
<br />of payment
<br />organizations equally). You should handle these card checks like any other personal
<br />check drawn upon a bank in the United States.
<br />payment charge has been made, the written confirmation must include (1) a
<br />detailed description of the goods or services to be provided; (2) the amount of the
<br />11. Sales Drafts
<br />charge; (3) the confirmation number (if applicable); (4) the details of any
<br />DO'S -
<br />cancellation or refund policies; and (5) the expected deliverydate of the goods or
<br />services. g
<br />• do prepare a sales draft for each transaction and provide a copy of the sales draft
<br />Recurring transactions
<br />or transaction receipt to the cardholder at the time the card transaction is
<br />If you process recurring transactions and charge a cardholder's account periodically
<br />completed. An exception is eligible transactions participating in any of the 'No
<br />Signature Required' programs.
<br />_
<br />for recurring goods or services (for example, yearly subscriptions and annual-
<br />membership fees, etc.), please follow the in
<br />• do only collect transaction data provided directly to you by the cardholder.
<br />procedures set out this section. _;:
<br />do include all of the following information on a single page document constituting
<br />DO'S
<br />the sales draft:
<br />• do obtain cardholder approval for such goods or services to be charged on an
<br />–the cardholder's account number;
<br />ongoing basis to the cardholder's account. Approval must at least specify:
<br />–cardholder's signature, unless you participate in any of the 'No Signature
<br />–the cardholder's name, address, account number and expiration date,
<br />Required' programs. Note: For the No Signature Required Programs, Visa,
<br />–the transaction amounts,
<br />Mastercard, Discover, and American Express do not require you to obtain
<br />–the timing or frequency of recurring charges,
<br />–the duration of time for which the cardholder's approval is for
<br />signatures at the point-of-sale for credit and/or debit transactions unless required
<br />by local and/or state law;
<br />granted, and
<br />Discover
<br />–date of the transaction;
<br />Network and PayPal transactions, the total amount of recurring 9
<br />charges to be billed
<br />–the total amount of the transaction, including any taxes to be collected, in the
<br />to the cardholder's account, (including taxes and tips) and your merchant
<br />identification number,
<br />approved currency of the sale;
<br />–description of the goods or services involved in the transaction—if there are too
<br />many items, combine them into one description; (for example, "clothing")to
<br />ensure that all information is contained on a single page;
<br />CardCo2305 1 I
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