UPCOMING SCHEME CHANGES

Transcription

1 UPCOMING SCHEME CHANGES MERCHANTS/PARTNERS/ISO COPY Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

2 Rights of use: COMPLYING WITH ALL APPLICABLE COPYRIGHT LAWS IS THE RESPONSABILITY OF THE USER. WITHOUT LIMITING THE RIGHTS UNDER COPYRIGHT, NO PART OF THIS DOCUMENT MAY BE REPRODUCED, STORED IN INTO A RETRIEVAL SYSTEM, OR TRANSMITTED IN ANY FORM OR BY ANY MEANS (ELECTRONIC, MECHANICAL, PHOTOCOPYING, RECORDING, OR OTHERWISE), OR FOR ANY PURPOSE, WITHOUT THE EXPRESS WRITTEN PERMISSION OF PAYVISION. PAYVISION MAY HAVE PATENTS, PATENT APPLICATIONS, TRADEMARKS, COPYRIGHTS, OR OTHER INTELLECTUAL PROPERTY RIGHTS COVERING SUBJECT MATTER IN THIS DOCUMENT. EXCEPT AS EXPRESSLY PROVIDED IN ANY WRITTEN LICENSE AGREEMENT FROM PAYVISION THE FURNISHING OF THIS DOCUMENT DOES NOT GIVE YOU ANY LICENSE TO THESE PATENTS, TRADEMARKS, COPYRIGHTS, OR OTHER INTELLECTUAL PROPERTY. DISCLAIMER This document does not in any way replace the documents from Schemes. In case of any doubt, user should always refer to scheme documents. This document is prepared by Payvision based on information and previous experience with scheme changes and is therefore based on how Payvision understands and handles scheme changes. By continuing to read this document, User accepts and understands that the information contained represents Payvision s guidelines based on scheme guidelines. Payvision shall not be liable for any misinterpretation of the Scheme s rules. Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

3 TABLE OF CONTENTS 1. Introduction Target audience Purpose of the guide Contact information Currency Code Updates Currency Code Addition and Currency Redenomination in Belarus Guaranteed Reservations for Merchants-ViSA Limited Acceptance Signage Applications and Reproduction Guide EU/EEA First Four BIN Digits No Longer Required Under the PAN on Cards-AP, Canada, CEMEA, LAC, U.S Surcharge at Point of Sale Changes to Gambling Transactions in Norway MasterCard Business Risk Assessment and Mitigation (BRAM) Updates Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

4 1. INTRODUCTION 1.1. Target audience This document has been created for Payvision merchants/resellers/isos regardless of the acquiring bank used by the user. The document is meant to provide notice and information regarding scheme changes as announced by the Schemes Purpose of the guide The purpose of this document is to inform merchants/resellers/isos of any upcoming scheme changes that might have an impact on the users. The document will also remind users of general scheme compliance changes, rules and mandates. This document does not replace official scheme documentation, member letters and scheme bulletins. The document contains summary level interpretation of such changes based on the understanding of Payvision Contact information Should you wish to obtain further clarification regarding the details of the document, please contact the Operations Department: Tel: +31 (0) Fax: +31 (0) Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

5 2. CURRENCY CODE UPDATES Effective 1 June 2016, MasterCard will make several currency name changes as announced by ISO and discontinue supporting the legacy currency code for Lithuania (LTL/440). Current situation. MasterCard periodically updates its supported transaction currency codes and names to respond to changing market conditions, align with ISO9, or both. MasterCard will make the following updates effective 1 June 2016.MasterCard will begin supporting the new currency names effective 1 June New Currency Names ISO has announced the following currency name changes. The legacy currency codes for Lithuania will no longer be supported as of 1 June The legacy currency code LTL/440 (Lithuanian litas) will be replaced by the existing currency code EUR/978 (euro). Transactions that contain the legacy currency code will be rejected by MasterCard after this date. Beginning with the first clearing cycle for processing day of 2 June 2016, MasterCard will reject any financial transaction presented in the deleted currency code. Fraudulent Transactions Please note that issuers can report fraudulent transactions in either the old or replacement currency and include the exponent values, depending on the first presentment acquired amount and the currency in which it was acquired. Please ensure you update your system to support the new currencies. Payvision will block the deleted currency code and any transactions submitted with old currency code will be declined. 1 June 2016 Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

6 3. CURRENCY CODE ADDITION AND CURRENCY REDENOMINATION IN BELARUS On 1 July 2016, the National Bank of the Republic of Belarus will introduce new currency codes and redenominate the currency for Belarus. Current situation On 18 December 2015, the National Bank of the Republic of Belarus announced that new alphanumeric currency codes BYN/933 with a currency exponent of 2 will be introduced and become effective on 1 July The existing Belarussian ruble will be redenominated so that 10,000 old Belarussian rubles will be exchanged for one new Belarussian ruble. In addition, the existing currency code BYR/974 with a currency exponent of 0 should no longer be used for card transactions after 30 June MasterCard will begin supporting the new currency code for the processing day of 1 July MasterCard will continue to support the existing Belarussian currency code for life cycle processing. For Belarussian ruble transactions authorized before 1 July 2016 and submitted to MasterCard for clearing on or after 1 July 2016, you must submit the transaction in the original currency code. For transactions authorized after 12:01 (local Belarus time) on 1 July 2016 and presented to MasterCard for the processing day of 1 July 2016, you must submit transactions in the new currency code. Chargebacks MasterCard will continue to support the existing Belarussian currency codes for life cycle processing. This means that issuers can submit first chargeback amounts calculated based on either the old or new currency code, with the currency code and exponent value dependent on the first presentment amount and currency. For first chargebacks on first presentment amounts acquired in the old currency, the chargeback amount must be calculated based on the old currency BYR/974. For first chargebacks on first presentment amounts acquired in the new currency, the chargeback amount must be calculated based on the new currency BYN/933. You are advised to make necessary system changes to support the new currency. 1 July 2016 Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

7 4. GUARANTEED RESERVATIONS FOR MERCHANTS-VISA In response to evolving merchant business practices, Visa is expanding merchant eligibility for guaranteed reservations to include additional merchant types. Current situation A guaranteed reservation ensures that a cardholder s reservation will be honored when a Visa card is used to make it, and allows a merchant to charge a no-show fee for one day if the cardholder does not cancel the reservation. Since 16 October 2015, eligible merchant types may guarantee a reservation and charge a no-show fee for one day if the cardholder does not cancel within the merchant s properly disclosed cancellation policy. In addition, Visa is revising the rule that allows cancellation of a guaranteed reservation to allow merchants to set their own cancellation polices. This change is beneficial to merchants that reserve inventory because it accommodates the need for greater flexibility in policies and improves inventory management as well as the cardholder experience. Eligible Merchant Types Lodging (currently allowed) Car rental Equipment rental Truck and trailer rental Trailer park or campground Boat rental Motor home rental Aircraft rental Motorcycle rental Bicycle rental It is important for merchants to know issuers retain their dispute rights if the merchant fails to properly disclose or prove the cardholder received their policy or the cardholder can prove they canceled according to the agreed upon policy. How to Guarantee a Reservation Provide proper disclosure of cancellation policy and other terms and conditions for reservation Obtain Visa account number from cardholder to guarantee reservation, but do not complete an authorization at the time of booking Send confirmation to cardholder that includes reservation details and appropriate disclosures of reservation conditions at time of booking. Additional Requirements Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

8 These requirements provide reservation assurances for cardholders, including clear disclosure of rate and cancellation policies, while allowing merchants to better manage inventory and, if needed, charge no-show fees. Cancellations. Merchants may set the cancellation policy that meets their business needs. Visa only requires that merchants offer at least a 24-hour cancellation period after the receipt of the cancellation policy to the cardholder. Cancellation/return/refund policies must be properly disclosed to the cardholder. No shows. Eligible merchant types may charge a no-show fee for one day if cardholder does not cancel within the disclosed cancellation terms. Merchants are protected from no-show disputes when policies are properly disclosed to the cardholder. Availability. If the goods or service is not available at the time specified in the reservation, the merchant must provide the promised service at a comparable establishment and transportation to that establishment. A merchant must hold inventory available for one day to accommodate cardholder arrival delays. Proper Disclosure A merchant that properly discloses their cancellation policy to the cardholder at the time of a reservation can improve cardholder satisfaction and reduce potential disputes. The Visa rules for proper disclosure have been revised to allow new options for clarifying return/refund/cancellation policies to the cardholder. For example: Written notice to be provided through mail, , or text message for guaranteed reservations made by phone ECommerce merchants have a choice of where the disclosure can be located within their website or application with either of the following: -In the sequence of pages before final checkout, including a click-to-accept or other acknowledgement button, checkbox, or location for an Electronic Signature -On the checkout screen near the submit button -Website may include a hyperlink leading to the purchase terms and conditions which contain the cancellation policy. The hyperlink must form part of the click to accept acknowledgement and refer to the cancellation policy. Immediately. Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

9 5. LIMITED ACCEPTANCE SIGNAGE APPLICATIONS AND REPRODUCTION GUIDE EU/EEA Merchants that choose to limit Visa acceptance to one or more product categories (either consumer prepaid, debit, credit or commercial) must display signage to communicate their acceptance policies to cardholders. Current situation Appropriate signage displays include acceptance decals, point-of-sale signage, check presenters and tip trays, web site pages and other communications at locations where Visa products are welcomed. The Visa Limited Acceptance signage, consists of the full-colour Visa, Visa Electron and V PAY pointof-sale (POS) graphics, a limited acceptance message in Visa Blue and a standardised white field. Always use these elements in the forms shown in this guide and provided in the approved artwork. To assist in the creation of appropriate signage, two types of limited acceptance artwork are available: Fully composed signs that include both the Visa POS graphic and the limited acceptance message. Snipes that can be applied to the existing Visa acceptance decals already on display. They can also be used with multi-brand strips. If a EU/EEA merchant chooses to limit their acceptance to certain categories of EU/EEA Visa cards, that merchant must honour any properly presented Visa card issued outside of the EU/EEA. POINT-OF-SALE (POS) APPLICATIONS The Visa Limited Acceptance signage must be prominently displayed in full colour at merchant outlets to communicate the merchant's Visa acceptance policy. The Visa POS graphic must be at least as large as all other acceptance marks displayed and, if displayed alone, no smaller than 54mm high. PRINT AND ONLINE APPLICATIONS When including a limited acceptance graphic in print or online advertising or promotional materials, make sure the Visa POS graphic and the message are fully and clearly visible not distorted or partially concealed. No text or graphic may appear within the Visa, Visa Electron and V PAY POS graphics or touch its edges. Maintain a clear space equal to the height of the V in the Visa Brand Mark, applied on all sides as shown in the diagram below. REPRODUCTION SPECIFICATIONS Always use the Visa Limited Acceptance signage as shown in this guide. Never alter the letters, spacing, or any design element. Always scale the artwork to maintain its correct proportion. When placing the Limited Acceptance signage on a white background with other marks, the clear space requirements detailed under Print and Online Applications must be followed. Colour Specifications Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

10 For print applications: Visually match Visa Blue and Visa Gold to the appropriate Pantone colours when printing in spot colour. Unless media demands 4-colour process, always print in spot colour - Visa Blue (coated): Pantone Visa Gold (coated): Pantone 130 Visually match Visa Blue and Visa Gold to appropriate CMYK formulas when printing in a 4-colour process - Visa Blue: CMYK C100 M85 Y0 K25 - Visa Gold: CMYK C0 M33 Y100 K0 For online/onscreen applications: The Visa-provided artwork for online/onscreen use contains the correct RGB colour formulas for Visa Blue and Visa Gold: - Visa Blue: R26 G31 B113 - Visa Gold: R247 G182 B0 Note that converting to RGB from Pantone spot colours or CMYK will not automatically produce the Visa-specific RGB colours Save the artwork as a GIF with all necessary colours. This will maintain the correct RGB values in non-anti-aliased areas When copying artwork from one application to another, convert the new document to RGB before pasting the artwork into the file Contact your designated Account/Relationship Manager for your copy of the official signage. Immediately Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

11 6. FIRST FOUR BIN DIGITS NO LONGER REQUIRED UNDER THE PAN ON CARDS-AP, CANADA, CEMEA, LAC, U.S. Visa no longer requires Issuers to print the first four digits of the Bank Identification Number (BIN) below the primary account number (PAN) on Visa cards. To help enhance clients and merchants flexibility and efficiency, effective 15 October 2016, Visa will no longer require issuers to place the first four digits of the BIN under the PAN on Visa cards. Current situation Visa currently specify that issuers must print the first four digits of the BIN below the PAN on cards, and require merchants (or acquirers) to validate cards by matching these digits in certain circumstances and taking appropriate action. First four digits of the BIN no longer required to be printed below the PAN on cards (15 October 2016) Merchants no longer required to validate cards by matching the first four digits of the PAN to the four digits under the PAN (15 October 2016) Merchants no longer required to take action based on the presence of the four digits printed under the PAN (17 October 2021) Effective 15 October 2016, merchants will no longer be required to validate cards by matching the first four digits of the PAN to the four digits printed under the PAN. Therefore, issuers will no longer be able to use chargeback Reason Code 62 Counterfeit Transaction in situations where the merchant or acquirer does not validate cards using this method. Effective 17 October 2021, merchants will no longer be required to take any action based on the presence of the four digits printed under the PAN. However, to accommodate longer issuance cycles and regulatory requirements, cards that include the four printed digits under the PAN can remain in use until 15 April As indicated above. Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

12 7. SURCHARGE AT POINT OF SALE Article 60 of the PSD2 establishes clear disclosure requirements for surcharging at the point of sale. In line with Article 60, Visa Regulations have been updated to clarify that where surcharging is expressly permitted by local law, any surcharge must be clearly communicated to the cardholder and agreed by that cardholder before the transaction is initiated. Current situation Visa Regulations currently state that a Merchant must not add any surcharges to Transactions, unless local law expressly requires that a Merchant be permitted to impose a surcharge. Any surcharge amount, if allowed, must be included in the Transaction Amount and not collected separately. Effective from 15 April 2016, for Visa Europe Transactions, where a surcharge is expressly permitted by local law, the amount of the surcharge must be clearly communicated to the Cardholder and agreed by that Cardholder before the Transaction is initiated. You must check whether surcharging is allowed or prohibited by the local laws in your country of operations. If local law expressly permits surcharging, any surcharge must be clearly communicated to the cardholder and agreed by that cardholder before the transaction is initiated. 15 April 2016 Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

13 8. CHANGES TO GAMBLING TRANSACTIONS IN NORWAY Visa Europe has announced the following changes impacting gambling transactions for Cards Issued in Norway and merchants located in Norway. Current situation In 2010, the Norwegian government implemented regulations in regards to internet gambling transactions. Visa Europe is incorporating these regulations into Visa Operation Regulations. Gambling Transactions outside Norway All Cards issued in Norway must not be used for Gambling Transactions outside of Norway. Gambling Transactions inside Norway Within Norway, such Gambling Transactions are only permitted at Merchants licenced by the Norwegian Gaming Authority. When processing a Gambling Transaction, an Acquirer/Merchant must ensure that the Transaction is identified with both: Merchant Category Code 7995, even when gambling services are not the Merchant's primary business; and Country code of Norway (NO). There is a possibility of an increase in declines for cards issued in Norway when used for internet gambling Immediately. Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

14 9. MASTERCARD BUSINESS RISK ASSESSMENT AND MITIGATION (BRAM) UPDATES MasterCard has added two new product types to the BRAM program and issued guidance on two others. The program will now explicitly monitor medical and dental devices and mobile repeaters in the U.K. Guidance has been provided on the proper MCC coding for e-cigarettes. An update has been provided on the status of synthetic drugs. Current situation. The MasterCard BRAM program prohibits the use of MasterCard cards in connection with activities that are illegal or are considered to be damaging to the MasterCard brand. From time to time, MasterCard issues guidance on specific monitored goods and services. Medical and dental devices are now specifically addressed by BRAM. o The sale of medical and dental devices constitutes a BRAM violation if the devices are: Counterfeit; Not approved by relevant regulatory entities; or Expired o Examples of medical and dental devices include: Condoms Prescription and colored contact lenses Diagnostic testing kits for HIV, diabetes, pregnancy, etc. Intravascular catheters Implants for breasts and other parts of the body Instruments and machines for hospitals, doctors and dentists o In the United States medical and dental devices are regulated under the U.S. Food, Drug and Cosmetic Act ( FDC Act ). o In the European Union, medical and dental devices are regulated under the E.U. Medical Devices Directive. o In the United Kingdom, medical and dental devices are regulated under the U.K. Medical Devices Regulations Mobile repeaters sold in the U.K. are now specifically addressed by BRAM o Mobile (cellular phone) repeaters sold without proper license in the U.K. will constitute a BRAM violation. o Mobile repeaters are devices that are intended to increase cellular signal in particular areas. Their use may interfere with service for other users. o In the U.K. only mobile network operators may use equipment that transmits in the cellular frequency bands. o Suspected cases of illegal sale and distribution of mobile repeaters are investigated by the U.K. Office of Communications (Ofcom). MasterCard has provided guidance on the appropriate MCC coding for electronic cigarettes. Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april

15 o The sale of electronic cigarettes should be coded as MCC 5993 Cigar Stores and Stands. o Merchants selling only electronic cigarettes do not need to be registered in the MasterCard Registration Program (MRP). o Merchants selling both electronic cigarettes and other tobacco products still must be registered in the MasterCard Registration Program (MRP). MasterCard has provided advisory information on the status of synthetic drugs. o Synthetic drugs refer to products with psychoactive and/or stimulant characteristics. o The sale of synthetic drugs is illegal in many jurisdictions. o China has recently issued guidance on prohibited drugs, chemicals and other psychotropic substances. o MasterCard encourages all parties involved in the payments system to remain aware of relevant legislation on this topic. You should be aware of these updates. If you are involved with the sale of medical and dental devices, mobile repeaters, electronic cigarettes, and/or synthetic drugs and believe that these changes affect you, please feel free to contact Payvision for further guidance. Immediately Payvision Ref: Payvision-Upcoming Scheme Changes (v1.0)-april