Visa and MasterCard introduces ongoing technical and business enhancements that may affect the way you accept card payments. As a Visa or MasterCard merchant, you are required to follow the procedures set by them. These enhancements may require you to review your operating procedures, and modify them as necessary by the required implementation date. Below is a list of current compliant releases. April and October 2018 – Visa and Mastercard Payment Security Changes (UPDATED April 2018) On April 12, 2018, Visa® and Mastercard® implemented policy changes to improve card security and further reduce fraudulent transactions and chargebacks in Canada. This will impact the way merchants accept card present (CP) and card not present (CNP) payments for domestic and international transactions. Fallback (Visa and Mastercard) Visa and Mastercard are enacting a ‘no fallback’ policy for CP transactions, which means that merchants will need to request an alternate method of payment if a customer’s Chip & PIN transaction fails, as the card will not ‘fallback’ to the magnetic swipe. These changes took effect April 12, 2018 for domestic transactions on both card brands, and will take effect October 12, 2018 for international transactions using Mastercard. CVV2 (Visa only) Visa will be making changes to CVV2 authorization for telephone order and e-commerce merchants on October 14, 2018. Merchants using the Moneris Gateway will be required to make changes to enable CVV2 information capture at payment checkout. Affected services include: Moneris API Batch submissions Hosted Pay Page Hosted Vault Virtual Terminal Merchant Resource Centre Hosted Tokenization PAYD family Moneris will activate Card Validation Digits (CVD) and Address Verification Services (AVS) for all Gateway Merchants effective May 15, 2018 at no additional fees or costs. Merchants that currently use CVD and AVS will have those fees removed. For details on required changes, please see: www.moneris.com/VisaCVD. Stored Credential Transaction Framework (Visa and Mastercard) Visa and Mastercard are updating their security policies for CNP transactions, beginning with the introduction of the Stored Credential Transaction Framework on October 12, 2018, which outlines the requirements for initial storage and subsequent use of payment credentials. For more information on the respective changes announced by Visa and Mastercard, please visit: Visa: Moneris.com/VisaSecurity Mastercard: Moneris.com/MCSecurity April 2018 - Visa Claims Resolution Effective April 13 2018, Visa will be implementing the Visa Claims Resolution (VCR) initiative to reduce the number of chargeback disputes and improve the overall efficiency of the dispute resolution process. Information on upcoming changes related to the VCR initiative has been provided below. Reduced Resolution Timeframes Chargebacks can typically take anywhere from 46 to 100 days to resolve, depending on their complexity. Visa is streamlining their chargebacks dispute process by eliminating any extra touch points and exchanges of information between parties. Reducing the time and resources it takes to resolve disputes will benefit merchants, issuers and cardholders alike. Merchants will now be asked to respond to chargeback disputes within seven calendar days from the date of notice. Changes to Chargeback Reason Codes The current list of 22 Visa chargeback reason codes will be replaced with new values and grouped into four new categories of disputes: Authorization, Fraud, Processing Errors and Consumer Disputes. For a full list of the new Visa chargeback reason codes and their corresponding dispute categories, please visit the Moneris chargebacks page. Changes to Direct Deposit Account (DDA) Descriptors Effective May 9 2017, the following changes will be made to Demand Deposit Account (DDA) descriptors for chargebacks across all card types. Fee Type Old Description New Description Chargebacks CAD/USD CTnnnn88888888 Where CT = Card Type (VI,MC,DI), nnnn = Card Brand Reason Code 88888888 = storeID if available, else use merchant number CAD/USD nnnnnnX88888888 Where nnnnnn = Card Brand Reason Code X = Card Type (V, M, D, U, A, J) 88888888 = Merchant number April 2017 - Visa, Mastercard and Discover update for manual key-entry transactions Effective April 21, 2017, Visa®, Mastercard®, and Discover® are revising processing standards for manual key-entry transactions to help minimize fraudulent activity at the point-of-sale (POS). Visa Businesses using EMV-enabled terminals may support manual key-entry transactions at their discretion, but are no longer required to accept Visa cards if the chip or magnetic stripe cannot be read by the POS device. Businesses using a magnetic stripe only device, are required to continue supporting manual key-entry procedures for Visa card transactions. Mastercard / Discover Businesses may support manual key-entry transactions at their discretion, but are not required to accept Mastercard or Discover cards if the magnetic stripe of a magnetic stripe only card or both the chip and magnetic stripe of a chip card cannot be read by an EMV-enabled POS device. While your business may have the option to manually key-enter transactions, if a chargeback is issued you will no longer be protected under Mastercard reason code 4837: No Cardholder Authorizations or Discover reason code UA01: Fraud – Card Present Transaction. This means that a manual imprint of the payment card coupled with the cardholder’s signature, will no longer provide proof of card presence required for fraud-related disputes. October 2015 - Visa Rule Changes Moneris Solutions Corporation (“Moneris”) would like to inform you of recent changes announced by Visa Inc. (“Visa”) which may impact your business processes. Visa Easy Payment Service (VEPS) If you are a participant in the Visa Easy Payment Service (VEPS) program, please be advised that Visa has announced the retirement of this program effective October 16, 2015. At the close of this program, all transactions will require a PIN or signature regardless of the transaction amount. As part of the natural evolution of the Visa No Signature program, Visa payWave contactless transactions do not require a signature or PIN. Dispute Rules Revisions Effective for Representments processed on or after October 17, 2015, Visa will be revising several disputes rules to promote a more efficient process. For more information, please see the Dispute Rules Revisions document. Visa Travel and Entertainment Rules Update Effective October 16, 2015, Visa will modify rules for travel and entertainment transactions and merchants with similar practices. For more information, please see the Visa Travel and Entertainment Rules Update October 2014 - Visa Rule Changes Moneris Solutions Corporation (“Moneris”) would like to inform you of a recent rule change announced by Visa Inc. (“Visa”) which may impact your business processes. Visa Floor Limit Visa has announced that effective October 17, 2014, Visa floor limits will be decreased to zero. As a result of this change, you will be required to obtain an authorization each time a transaction is processed, as part of proper card acceptance procedures regardless of the type or the amount of the transaction. Failure to adhere to proper card acceptance procedures could result in chargebacks. As a result of this change, please ensure that you review your business processes and make any necessary updates as they relate to your Visa. March 2014 - Interac Flash Interac Flash’s functionality continues to grow in the marketplace, and, as a result, Interac has made changes to the transaction limit. Prior to this change, Issuers were required to set the Interac Flash per Transaction Limit to a minimum amount of $25, and up to a maximum amount of $100. Effective January 2, 2014, Issuers are now required to set the Interac Flash per Transaction Limit to $100 for all transactions. Merchants need to be aware that the transaction limit for Interac Flash transactions is set by the Issuers- Merchants cannot set transaction limits at the merchant/terminal level. October 2013 – Visa Rule Changes Moneris Solutions Corporation (“Moneris”) would like to inform you of some recent rule changes announced by Visa Inc. (“Visa”) which may impact your business processes. Visa payWave Visa has announced the payWave chargeback protection limit will increase from $50 CDN (including taxes) to $100 CDN (including taxes). These changes will take effect October 18, 2013. If you accept payWave, please ensure that you review your business processes and make any necessary updates as they relate to your Visa. If you are not accepting payWave at this time, this change will not impact your business. October 2013 - MasterCard Rule Changes Moneris Solutions Corporation (“Moneris”) would like to inform you of some recent rule changes announced by MasterCard Inc. (“MasterCard”) which may impact your business processes. MasterCard Floor Limit MasterCard has announced that effective October 18, 2013, MasterCard floor limits will be decreased to zero. As a result of this change, you will be required to obtain an authorization each time a transaction is processed, as part of proper card acceptance procedures regardless of the type or the amount of the transaction. Failure to adhere to proper card acceptance procedures could result in chargebacks. MasterCard Quick Payment Service (QPS) If you are a participant in the MasterCard QPS program, please be advised that MasterCard has announced that they are retiring this program effective October 18, 2013. At the close of this program, . all transactions will require a PIN or signature, regardless of the transaction amount. Acceptance of MasterCard PayPass contactless transactions is part of the natural evolution of the MasterCard QPS program. MasterCard PayPass MasterCard has announced that effective October 18, 2013, the PayPass chargeback protection limit will increase from $50 CDN (including taxes) to $100 CDN (including taxes).If you are not accepting PayPass at this time, this change will not impact your business. As a result of the changes outlined above, please ensure that you review your business processes and make any necessary updates as they relate to your MasterCard. April 2013 - Discover No Signature Required Program Threshold Increase to $50.00 To further promote the No Signature Required Program, effective April 20, 2013, Discover will revise the transaction amount limits for their No Signature Program from $25.00 to $50.00 for all merchant categories that are eligible to participate in the program April 2012 - Authorization to Settlement Amount Tolerance for Car Rental Merchants Effective April 14, 2012, Visa will expand the authorization to settlement amount tolerance for car rental merchants to 15 percent of the authorized amount or $75 USD, whichever is greater. This allows such merchants to clear and settle qualified transactions without obtaining an incremental authorization. The final amount of a car rental transaction is often unknown when the transaction is initiated and authorized because of the potential for unknown charges to be incurred at final settlement. As a result of this change, an incremental authorization is not required within the allowed tolerance, and merchants will receive increased chargeback protection limit under Reason Code 72 - No Authorization. June 2011 - Account Status Inquiry Service Effective June 27, 2011, the current method of performing an “account status check” – requesting authorizations typically for a $1 or less to verify that a card is valid – will become prohibited, unless you are an Automated Fuel Dispenser (AFD) merchant. The current method places unnecessary holds on the cardholder’s account that are not cleared or reversed in a timely manner. April 2011 - Chargeback Documentation Elimination As a result of upcoming card plan changes to chargeback documentation requirements, effective for new chargebacks processed on or after April 16, 2011, the Payment Brands will eliminate the Issuer’s documentation for the following chargebacks. Visa Chargeback Reason Codes 57 Fraudulent Processing of Transactions 62 Counterfeit Card 81 Card Present Fraud 83 Card Not Present Fraud 76 Incorrect Transaction Code (Dynamic Currency Conversion only) 80 Incorrect Amount/Account Number (Altered Amounts only) 85 Credit Not Processed (Credit Slip Requirement) Compliance Violations for Split Sale MasterCard Chargeback Reason Codes 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transactions 4847 Requested/Required Authorization not Obtained and Fraudulent Transaction 4862 Counterfeit Transaction Magnetic Stripe POS Fraud 4863 Cardholder Does Not Recognize – Potential Fraud 4870 CHIP Liability Shift 4871 CHIP & PIN Liability Shift Visa Europe Region is excluded from the documentation elimination changes; therefore, issuers in this region still must supply a cardholder letter as applicable based on the chargeback reason code.