payment network enhancements - shopping...the purpose of the elavon payment network enhancements...

PAYMENT NETWORK ENHANCEMENTS OCTOBER 2014 REGULATORY UPDATE

October 2014

Payment Network Enhancements OCTOBER 2014

SUMMARY

INTRODUCTION PAGE 4

- MESSAGE TO OUR CLIENTS

VISA® REQUIREMENTS

PAGES 5-9

Visa is introducing a new spend qualified indicator.

Visa is eliminating some international and regional interchange categories.

Visa is modifying AVS acceptance for Canadian issued cards.

Visa is introducing a new ACI value.

Visa is expanding the B2B settlement match program.

Visa is introducing new AP rewards interchange programs.

Visa is modifying the US Debit Tax payment program.

Visa is introducing a new recurring bill payment category.

MASTERCARD® REQUIREMENTS PAGES 10-12

MasterCard is adjusting MasterPass 3D Secure values.

MasterCard is modifying mobile POS indicators.

MasterCard is adjusting Debit MasterCard in Canada.

MasterCard’s Contactless Device Type Mandate update.

MasterCard is introducing new B2B product.

MasterCard is introducing a new digital enablement fee.

October 2014

SUMMARY - CONTINUED

DISCOVER® REQUIREMENTS PAGE 13

Discover is adjusting recurring qualifications.

AMERICAN EXPRESS® REQUIREMENTS PAGE 14

No updates from American Express

PIN DEBIT REQUIREMENTS PAGE 15

AFFN is introducing new Interchange Categories

APPENDICES PAGE 16

Appendix A – Key Dates

October 2014

INTRODUCTION

The purpose of the Elavon Payment Network Enhancements Bulletin is to alert Elavon clients of card brand mandated changes. The changes highlighted carry potential financial or compliance risk, mandate procedural changes, introduce new products, or provide general network information updates. DESCRIPTION OF SECTION FORMAT

Below is a description of each section of the grid. With each enhancement item you will find a blue box with

information to help you understand how the enhancement impacts you.

Industry – Indicates impacted client market segment or processing type. Ex. Retail, E-Commerce, Mobile

Client Impact:

Financial – Indicates a change that has a financial impact. Clients may not have changes that they need

to make.

Technical – Indicates that clients may need to make changes in procedures or updates to

software/terminal to support this change.

Informational – No action is required by clients for this item. Clients should be aware of the change.

Region – Indicates impacted acquiring regions.

Important Notes – Notes indicating Elavon support and any actions that may be needed.

Industry Client Impact

All Financial Technical Informational (No Action Required)

Region

IMPORTANT NOTES:

October 2014

VISA® REQUIREMENTS

VISA IS INTRODUCING A NEW SPEND QUALIFIED INDICATOR Visa introduced the new spend qualified categories in the April 2014 release. Within the October 2014 release, Visa is adding a new spend qualified value. There is no interchange impact with this change.

VISA IS ELIMINATING SOME INTERNATIONAL AND REGIONAL INTERCHANGE CATEGORIES

Visa is adjusting their international qualification logic. International Full chip interchange categories are being eliminated. Transactions that process in this interchange category today will qualify for International Acquirer chip or Electronic categories. International, AP, and LAC region Airline acquirer chip is also being eliminated. These transactions will now qualify for International, AP, or LAC region Airline.


Chip Acceptance Financial Technical Informational (No Action Required)

Yes

Region Global

IMPORTANT NOTES:

Elavon will support this change. Clients accepting international chip can expect some

qualifications to change.



Yes

Region Global

IMPORTANT NOTES:

Elavon will support this change.

This is a retain and return field. A new value of B indicating Base spend requirements

met will be introduced. Vendor software and terminals should be able to pass this

value to Elavon.

October 2014

VISA REQUIREMENTS - CONTINUED

VISA IS MODIFYING AVS ACCEPTANCE FOR CANADIAN ISSUED CARDS

Visa is modifying AVS procedures for US region AFD merchants accepting Canadian issued cards. Clients will now be able to receive AVS responses for these transactions. There is no interchange impact with this change.

VISA IS INTRODUCING A NEW ACI VALUE

Visa is introducing a new Authorization Characteristics Indicator (ACI) to support mobile payments. This functionality is to properly identify tokenized e-commerce from secure mobile devices. These transactions will qualify for existing e-commerce or CNP interchange categories.


AFD Financial Technical Informational (No Action Required)

Yes

Region United States

IMPORTANT NOTES:

Elavon currently supports this functionality.

Clients can begin entering Visa transactions with the Number portion of the zip followed

by zeroes. Alphanumeric zip codes cannot be entered.


Mobile Acceptance Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:


The new Value of B will be returned on eligible transactions. This is an existing retain

and return field. Clients should not have any modifications to their systems.

October 2014



Yes

Region Asia Pacific

IMPORTANT NOTES:


US Territory clients in the AP region will be eligible for these programs.


VISA IS EXPANDING THE B2B SETTLEMENT MATCH PROGRAM

Visa is expanding the B2B (Business-to-Business) settlement match program. This edit is still restricted to the B2B payables environment with purchasing cards. The program is now eligible for clients in all regions and lodging MCCs have been added to the program. There is no interchange impact with this change.

VISA IS INTRODUCING NEW AP REWARDS.

Visa is introducing new AP region rewards interchange programs. Rewards cards accepted at AP region clients

currently qualify for Platinum interchange categories. These will now qualify for new rewards categories. Rates

will be available on the interchange grid.


B2B Financial Technical Informational (No Action Required)

Yes

Region Global

IMPORTANT NOTES:


October 2014


Debit Tax Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:


Charge types 1589 and 7033 will be eliminated. Expect these transactions to qualify for

1588 and 7032 respectively.


VISA IS MODIFYING THE US DEBIT TAX PAYMENT PROGRAM.

Visa is modifying the US Debit Tax payment program. Currently this program has separate qualifications for the

payment and the convenience fee. The convenience fee interchange categories are being eliminated. The

convenience fee transactions will now qualify under the remaining debit tax payment interchange categories.

October 2014


MCCs 4899 and 4814 Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:


MCC 4899 – Cable will no longer be eligible for Retail 2 credit CP and CNP interchange

categories. Non recurring transactions will be eligible for Retail and CNP interchange

categories.

Debit and Prepaid transaction qualification will not change. These will still be eligible

for the retail 2 categories

A new ACI value of J – (CNP – Recurring) is being created for these transactions


VISA IS INTRODUCING A NEW RECURRING BILL PAYMENT CATEGORY.

Visa is introducing the recurring bill payment category. This category is to support payments occurring at MCCs

4899 – Cable and 4814 – Telecom. Recurring credit transactions will be eligible for this new category. Rates will

be available on the interchange grid.

- End of Visa Requirements -

October 2014

MASTERCARD® REQUIREMENTS

MASTERCARD IS ADJUSTING MASTERPASS 3D SECURE VALUES MasterCard is adjusting valid values for MasterPass 3D Secure values. New values will be used to identify the level of authentication used during the MasterPass authorization. These changes may have interchange impact as they will be used to determine UCAF qualification.

MASTERCARD IS MODIFYING MOBILE POS INDICATORS

MasterCard is modifying mobile POS indicators to better identify mobile transactions. New indicators are to

identify the point of sale acceptance device. There is no interchange impact with this change.


E-Commerce Financial Technical Informational (No Action Required)

Yes Yes

Region Global

IMPORTANT NOTES:



Mobile Financial Technical Informational (No Action Required)

Yes

Region Global

IMPORTANT NOTES:

Clients should expect an update will be needed to submit the new value in an existing field.

October 2014

MASTERCARD REQUIREMENTS - CONTINUED

MASTERCARD IS ADJUSTING DEBIT MASTERCARD IN CANADA

MasterCard Canada is adjusting support for Debit MasterCard. Swiped and chip entered transactions will now be eligible for Debit MasterCard. Previously, Debit MasterCard was only eligible for key entered or card not present transactions. New interchange programs will be created to support this change. Rates will be available on the interchange grids.

ELAVON IS NOW SUPPORTING MASTERCARD’S CONTACTLESS DEVICE TYPE MANDATE

In October 2013, MasterCard introduced new device type values for contactless transactions. Device type values are used to identify if the consumer began the transaction with a mobile phone, tablet, physical card, or other device. Elavon will now be supporting this mandate with this October 2014 release. There is no interchange impact with this change.


Card Present Financial Technical Informational (No Action Required)

Yes

Region Canada

IMPORTANT NOTES:

Clients will need to confirm the ability to send this new indicator with your vendor

software.


Contactless Financial Technical Informational (No Action Required)

Yes

Region United States, Canada

IMPORTANT NOTES:

Clients should confirm support for these new values with your contactless acceptance

device vendor.

October 2014

MASTERCARD REQUIREMENTS - CONTINUED

MASTERCARD IS INTRODUCING NEW B2B PRODUCT

MasterCard is introducing a new virtual prepaid card product for commercial payments. This new product is designed for large pre-arranged B2B transactions traditionally handled by other forms of payment. These transactions will be added to existing interchange categories.

MASTERCARD IS INTRODUCING A NEW DIGITAL ENABLEMENT FEE

Effective January 2015, MasterCard will begin assessing a new digital enablement fee. This fee will apply to all CNP transactions. This includes e-commerce, recurring, and mobile wallet transactions. Card swiped, chip entry, and contactless transactions are currently excluded from this enablement fee. Rates will be available on the interchange grid.


B2B Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:

Clients should be aware that this is for CNP transactions only as no plastic card will be

issued.


CNP Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:


Clients should be aware that this new fee will begin billing in January 2015

- End of MasterCard Requirements -

October 2014

DISCOVER® ACQUIRING REQUIREMENTS

DISCOVER IS ADJUSTING RECURRING QUALIFICATIONS Discover is adjusting recurring interchange qualifications. MCCs 4814, 4899, 4900, 7298, 8675, and 8699 will no longer be eligible for recurring payment products. These transactions should expect to qualify under Retail or CNP qualification criteria. MCCs 4814 and 4899 Debit and prepaid card products will remain are eligible for recurring payment interchange categories.


Recurring Financial Technical Informational (No Action Required)

Yes


IMPORTANT NOTES:


- End of Discover Requirements -

October 2014

AMERICAN EXPRESS® REQUIREMENTS

No American Express updates for October 2014 release.

- End of American Express Requirements -

October 2014

PIN DEBIT REQUIREMENTS

AFFN IS INTRODUCING NEW INTERCHANGE CATEGORIES AFFN is introducing new categories for processing. AFFN is introducing Petroleum, Small ticket for Petroleum and Major Merchants, and Supermarket regulated. Also, AFFN is expanding Pinless Bill Pay to include Medical, Other, and Telecom categories based on MCC. Rates will be available on the Interchange grids


Pin Debit Financial Technical Informational (No Action Required)

Yes

Region United States, PR

IMPORTANT NOTES:


Supermarket MCCs: 5411 and 5300

Major Merchant MCCs 5310, 5499 5541, 5542, 5912, 7511, and 9399

Petroleum 5541 and 5542

Pinless Telecom MCCs 4812, 4814, 4899, 5960, and 6300

Pinless Medical MCCs 8011, 8021, 8031, 8041, 8043, 8042, 8049, 8050, 8062, 8071, and 8099

October 2014

APPENDIX A

KEY DATES

October 2014 –October Regulatory Release

January 2015 – MC Digital Enablement Fee Begins

- End Document -

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